Delivery methods

Construction manager at risk basics

By Scavi Company · · 3 min read
Construction manager at risk basics

CMAR brings the builder in early and ends with a guaranteed maximum price.

Early involvement

During design.

Preconstruction

Estimates and constructability.

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GMP

Guaranteed maximum price.

Subcontractors

Competitive bidding.

Contingencies

Defined use.

Savings

Shared per contract.

A closer look

The value of CMAR is in preconstruction: estimates at each design milestone, constructability reviews and early procurement. The risk is in the GMP. A GMP set on incomplete drawings needs clear assumptions and contingency, or the CM absorbs costs that should have been changes.

Where to start

Document every assumption in your GMP proposal.

Common mistakes

Vague assumptions, weak preconstruction and unclear contingency rules.

An example

A CM documented every GMP assumption for a university building. When the design changed late, the assumptions made the change order discussion short and fair.

What to track

Track buyout savings, contingency use, change orders and estimate accuracy between design milestones.

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Frequently asked questions

What is the difference between CMAR and design-build?

In CMAR, the owner contracts separately with the designer and the construction manager. In design-build, one entity is responsible for both design and construction.