Construction Manager At-Risk

With this project delivery method, the design and construction contracts are held separately by the owner.  The CM At-Risk guarantees the cost of the project, referred to as a Guaranteed Maximum Price (GMP). The CM At-Risk acts as a consultant to the owner during design, becomes the general contractor during the construction phase and manages and controls costs not to exceed the GMP.  Owners choose this approach because they hold less risk in the project and have just as much say (if not more) in the entire process.

What to Consider:

• The Contractor must act in the owner’s best interest and deliver the project within the GMP.
• The GMP is established after the project is awarded, so the owner’s selection of the CM At-Risk is based on qualifications and not costs.
• During the design phase, the CM At-Risk acts as a consultant to the owner, sharing recommendations on constructability, systems, materials and value engineering, which other delivery methods do not offer.
• The owner manages two contracts and two companies for design and construction.
• With the established GMP, the owner holds less risk in the project and any savings realized throughout the project are returned to the owner, which other delivery methods do not provide.
• The CM At-Risk bases other subcontractors bids on cost, quality, performance, experience and more. The owner has input about who works on the project, unlike other delivery methods based solely on lowest bidder.