Project Delivery - CM at Risk

The Construction Management at Risk (CMAR) delivery model combines Design-Build and Design-Bid-Build.

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The best elements of Design-Build and Design-Bid-Build are combined while eliminating many of the negatives.

CM at Risk: Project Delivery Methods - Definition of CM at Risk and pros and cons.

The CM role is critical for all project delivery methods acting on behalf of the Project Owner and controlling the project’s timeline, cost, and quality within a defined scope. This is known as the Project Management Triangle.  

CMAR integrates the role of the Construction Manager (CM) and the Contractor (GC) while the Project Owner still contracts separately with the Architect.  

The CM+GC combination leverages their depth of constructability knowledge and resources, working hands-on with the Architect and Project Owner from the very initial Programming and Schematic phases.  

The contracts typically have a fixed fee, open-book on costs, a Guaranteed Maximum Price (GMP), and a cost-savings sharing incentive.

This allows the Project Owner to retain both direct control over the design as well as flexibility for rapidly evolving project scopes. The tighter integration of design and construction leads to faster delivery.  

CMAR is one of the most frequently used methods for the ENR Top 400.  

Key downsides include the difficulty in selecting a CM with the best qualifications and the Architect not accepting input from the CM.  

In some situations, the integration of the roles can be challenging when it comes to decisions that require balancing the needs of the Project Owner with the needs of the Contractor, which is why selection is so crucial for success.


CM at Risk
The preferred project delivery method. There is a reason 100 of ENR's Top 400 General Contractors use CMAR as the project delivery method for over 75% of their work. Leverage CMAR as part of your growth strategy....

CM at Risk
The preferred project delivery method. There is a reason 100 of ENR's Top 400 General Contractors use CMAR as the project delivery method for over 75% of their work. Leverage CMAR as part of your growth strategy....

Lead Measures and Outcomes: Starting with the Schedule of Values (SOV)
It is nearly impossible for a contractor to have consistently great cash flow if they have a Schedule-of-Values (SOV) that isn’t loaded properly and integrated with the project schedule, including a projection of the cash flow.
Cash Flow and the 5Cs of Credit - Character
Out of the 5C’s of Credit, character is the one that takes the longest to develop and can be lost in an instant. Character is like your safety EMR in that it is a multiplier for the other C’s, including how much capital you will need to leverage.
Incentive Compensation for Contractors - Alignment
One of the most challenging aspects of incentive programs is communicating demonstrated success in such a way that every functional group believes they have direct impact on their incentive outcome and that it is fairly applied across all stakeholders.