Definition:
A project delivery method where a construction manager commits to delivering a project within a guaranteed maximum price (GMP) while collaborating with the owner and designer during the pre-construction phase.
Key Components:
- Early Contractor Involvement: The CM works with the owner during design development.
- Guaranteed Maximum Price (GMP): A cost cap is set, with the CM responsible for overruns.
- Construction Oversight: The CM manages subcontractors and ensures quality execution.
Use Cases/Industries:
- Commercial Buildings: Office complexes, hotels.
- Educational Facilities: Universities and public schools.
- Infrastructure: Bridges and public transit projects.
Advantages:
- Cost Certainty: The owner benefits from a pre-agreed maximum cost.
- Reduced Change Orders: Early contractor input minimizes design errors.
- Improved Project Control: The CM ensures smooth coordination between designers and subcontractors.
Challenges:
- Owner’s Risk Remains: If the CM underestimates costs, they may face financial strain.
- Potential for Disputes: Conflicts can arise over scope changes affecting the GMP.
- Contract Complexity: Requires clear agreements defining CM responsibilities.
Related Terms:
Guaranteed Maximum Price (GMP), Early Contractor Involvement (ECI), Pre-Construction Services
Example:
A university expansion project hires a CMAR firm to work with architects during the design phase, ensuring that the project stays within the agreed budget while improving construction efficiency.
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Synonyms:
CM at Risk, CM-GMP, Risk-Based Construction Management
