The construction manager at risk process
For owners who want to leave the bulk of the construction project-related decisions to a professional, the construction manager at risk (CMAR) method can be a great fit and be highly successful when a knowledgeable and qualified CM is chosen for the project.
Throughout the CMAR process, the CM makes decisions with the owner’s best interest in mind. Here is an overview of how the CMAR process works:
1. Owner chooses the construction manager
Prior to the bid stage, the owner chooses the CM. Choosing the correct CM is a critical step in the CMAR process – the wrong CM could lead to a project going over budget, beyond schedule or failure. Choosing a CM with experience and industry relationships in the realm of the project is critical. It would be diligent of both the owner and CM to put contracts in place regarding how to manage change orders, increases in the scope of work or issues that arise during construction, and who pays for them.
At this point in the early stages of the project, it can be beneficial for the project when the CM aids in the selection of an architect or engineer, acting as the liaison and potentially providing increased collaboration between these stakeholders.
2. Construction manager sets guaranteed maximum price (GMP)
Scope of work must be established before the bid stage and before the CM provides the owner with the GMP. After the scope of work is established, the CM provides the owner a GMP for the project. Typically included within the GMP are contingency line items to address construction-related issues. At this point, the CM is contractually obligated to deliver the project in accordance with the plans and within the GMP.
3. Planning and design: the CM at risk as a consultant
One of the unique aspects of the construction manager at-risk process is the ability of the CM to act as a consultant during the design and planning stage, allowing for constant communication between the owner, architect and the lead contractor, who in some cases, is also sometimes the CM. Cost estimates are provided to the owner during the design process at pre-specified intervals, keeping the budget in check. Should any cost estimates come in that are above and beyond the GMP, the owner, architect and CM can work together to adjust the project scope, materials or design as needed to keep the project within the set budget. Also contrary to other
