#7 - Construction Management at Risk Method

Construction Management at Risk (CM@R) project delivery method in which an owner retains a designer to furnish design services and also retains a construction manager to provide construction management services for a project throughout the preconstruction and construction phases.

These services may include the Preparation and Coordination of bid packages, Scheduling, Cost Control, Value Engineering, and Construction Administration. The construction manager is usually a licensed general contractor and guarantees the cost of the project (guaranteed maximum price, or GMP). The owner is responsible for the design before a GMP can be set.

Unlike DBB, CM@R brings the constructor into the design process at a stage where they can have definitive input. The value of the delivery method stems from the early involvement of the contractor and the reduced liability of the owner for the cost overruns.

Next article, Integrated Project Delivery

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