CONSTRUCTION MANAGER AT-RISK

Construction Manager At-Risk, or CMAR projects, involve a Construction Manager overseeing a project from start to finish. Working on behalf of the owner, the Construction Manager holds contacts with the subcontractors. The architect will have a separate contract with the owner. Before the design phase is complete, the Construction Manager estimates the construction cost and provides a Guaranteed Maximum Price (GMP) to the owner. If the project exceeds the GMP, the Construction Manager’s company will be financially responsible, putting the Manager “at risk.” 

Pros & Cons

CMAR offers many benefits. First, the construction process is under one contract. The Construction Manager coordinates all subcontractor work, simplifying the process and reducing risk for the owner.  For large-scale projects, the Construction Manager may break the project into smaller scopes of work that are separately placed out to bid. Rather than completing all documents before construction begins (the case with design-bid-build projects), portions of construction can begin while the design team is completing documents for later stages. For example, site work may begin while other details are getting worked out. Due to its efficiencies, CMAR is appropriate for large private projects.