General

Construction Manager at Risk

Also known as: CMAR, CM at Risk, CM/GC

A project delivery method where the construction manager joins early as a consultant, then converts to general contractor under a guaranteed maximum price.

Construction Manager at Risk (CMAR) is a project delivery method that combines preconstruction consulting with at-risk construction execution. The CM joins the project during design, advising on constructability, cost, and schedule. At a defined design milestone (often 60% or 90% construction documents), the CM converts to general contractor under a Guaranteed Maximum Price (GMP) and takes on the risk of completing within that price.

CMAR is common on complex commercial work (hospitals, universities, public buildings) where owners benefit from early contractor input but want price certainty before construction starts. It contrasts with design-bid-build (where the GC arrives only after design is complete) and design-build (where one entity holds both design and construction). Compared to design-bid-build, CMAR shortens overall schedules but reduces price competition because the CM is selected on qualifications before scope is finalized.

Frequently asked questions

What is the difference between CMAR and design-build?+

CMAR keeps design and construction under separate contracts; the CM does not own the design risk. Design-build wraps design and construction under a single entity that owns both. CMAR gives the owner more design control; design-build gives single-source accountability.

When is CMAR the right delivery method?+

On complex projects where early constructability input is valuable, where the owner wants price certainty before construction, and where the schedule benefits from overlapping design and bidding. Common on public buildings, healthcare, and higher education.

How is the GMP set in CMAR?+

The CM and owner negotiate the GMP at a design milestone (typically 60 to 90% CDs) based on detailed estimates. Subs are often competitively bid even within CMAR. Savings under GMP are typically shared between owner and CM per a contract formula.

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