Construction Management at Risk

For the most all-encompassing approach to construction, many clients prefer CMAR, or construction management at risk.

Construction management at risk is an efficient approach to the standard ”design-bid-build” process. In CMAR, all project deliverables, including finance, design, and construction are typically handled by a construction management company at the beginning of the project, usually the design phase. Once the Construction Manager is assigned, they’ll manage the project through each phase to make sure it stays on budget and on schedule.

Depending on the size of the project, the number of Construction Managers can vary. On smaller projects, it’s not rare to see only one Construction Manager handling the entire process. On larger projects, however, there could be the need for a full construction management team. Ultimately though, this decision is up to you as the client. Some owners prefer to only collaborate with one person while others may appreciate the vast experience that comes with a larger team of Construction Managers.

Simply put, the CMAR process is very streamlined when compared to traditional methods of project construction. Once your CMAR company is chosen, you’ll be assigned a construction manager who will typically get started on the design phase of your project. However, sometimes a Construction Manager isn’t brought on until after the design phase — this all depends on your needs and how hands-on or hands-off you’d like to be.

Beginning the Design Phase and GMP

No matter which phase you decide to bring on a Construction Manager, it’s a good idea to begin building a trusting relationship to make sure you’re a good fit for each other and that the relationship includes matched expectations and great communication. The sooner you bring the Construction Manager on, ideally at the onset of the design phase, the quicker your collaborative relationship can begin. This also allows them to nail down an accurate and realistic ‘guaranteed maximum price’, or GMP.

As the design phase comes to an end, your Construction Manager can determine what it will actually take to complete the entire project. As the client, it’s important to finalize your GMP as soon as possible, especially if the construction project has a deadline. This will affect everything from scheduling, financing, and ultimately the successful completion of your project.

Once you’ve decided on a GMP, you’ll sign a contract that holds the Construction Manager to the GMP. This is especially beneficial for clients; if for some reason the project goes over budget, the Construction Manager is financially responsible for the overages.

Starting Construction

Next, the Construction Manager will begin the subcontractor hiring process, serving as the general contractor for the rest of the project’s lifespan. Based on the GMP, they’ll oversee all aspects of the project with both schedule and budget in mind. As the project advances through the different stages, the Construction Manager will provide frequent progress reports and status updates until the project is completed.

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The advantages of CMAR are pretty big — a hands-off approach, no liability for project overages, and contractual guarantees that ensure successful completion. And while all of this is true of CMAR, there’s one thing you should keep in mind — the construction management company’s track record.

At Target Builders, we have over 30 years of experience successfully completing different types of construction projects for our clients. From the schools that help shape our children’s futures to the buildings that allow our governments to function, we know what it’s going to take to make your project a success.