Construction Management at Risk (CMAR)

  • Three linear phases: design, bid, build or may be fast tracked.
  • Three prime players: owner, designer and CM-constructor.
  • Two separate contracts: owner to CM-constructor and owner to designer.
  • Owner warrants the sufficiency of the plans and specs to the CM-Constructor:
    • Owner is responsible for the “details” of design.
    • Owner is liable for any “gaps” between the plans and specs and the owner’s requirements for performance.

Key Considerations:

  • Designer works directly for owner.
  • The owner gains the benefit of having the opportunity to incorporate a contractor’s perspective and input to planning and design decisions:
    • More professional relationship with contractor.
    • Earlier knowledge of costs.
    • Earlier involvement of constructor expertise.
  • Project delivery typically faster than traditional design-bid-build.
  • A primary disadvantage in CMR delivery involves the lack of direct contractual relationship between the contractor and designer, placing the owner between those entities for the resolution of project issues:
    • Disagreements regarding construction quality, the completeness of the design, and impacts to schedule and budget may arise.
    • As with the design-bid-build system, adversarial relationships may result.