Construction management at risk is a type of project delivery method in which a construction manager is hired to provide pre-construction services and assume the risk of delivering a project within a guaranteed maximum price (GMP).

In this arrangement, the construction manager works with the owner to develop the project’s design and budget, and then provides a GMP to the owner. The construction manager is then responsible for delivering the project within the agreed upon GMP, and assumes the risk for any cost overruns. This delivery method allows the owner to have a greater degree of control over the project’s budget and schedule, and it also allows the construction manager to get involved in the project at an early stage and provide value-added services.

Benefits of CMAR

• Collaborative Effort from Inception: The CMAR works with the owner and design team from the very start of the project, fostering a team-based approach that aligns everyone towards the project’s success.
• Open Book Competitive Pricing: The CMAR ensures transparency by managing bids from trade partners openly, allowing for competitive pricing while maintaining cost control.
• Early Project Involvement: The CMAR’s early involvement guarantees input on constructability, reducing the risk of costly rework and ensuring that the design is practical and buildable from the outset.
• Value Engineering During Design: The CMAR provides value analysis during the design process, helping the owner and design team optimize materials and methods to stay within budget without sacrificing quality.
• Accelerated Project Delivery: By overlapping design and construction phases, the CMAR can shorten the overall project timeline, improving delivery time without compromising quality.
• Flexibility in Scope: A well-defined scope is not required at the contract’s outset, offering flexibility to refine project details as the design develops.
• Owner Retains Control of Design: While the CMAR is responsible for construction, the owner remains in control of the project’s design, ensuring that their vision is fully realized.
• Team-Based Approach: The CMAR and design team work collaboratively in the owner’s best interest, developing the project scope, budget, and schedule with a shared goal of success.
• Budgeting and Scheduling Assistance: The CMAR plays an active role during pre-construction, providing expert budgeting and scheduling input to ensure cost control and alignment with project milestones.
• Risk Reduction for the Owner: With the CMAR taking on the risk of trade contracts and cost overruns, the owner’s financial exposure is minimized, reducing overall project risk.
• Qualification-Based Selection: Selecting a CMAR based on qualifications rather than just price ensures that the owner benefits from experienced management tailored to the project’s unique needs.
• Cost Savings for the Owner: The CMAR’s collaborative and transparent approach often results in significant cost savings through value engineering, early trade partner involvement, and efficient project management.

Key Considerations for CMAR Success

• GMP Timing: While the GMP may not be established until the design is complete or a mutually agreed point, this allows for flexibility during design development and ensures that the final GMP reflects the project’s true needs.
• Balancing Contingency: Establishing the right amount of contingency within the GMP requires careful consideration. However, the CMAR works closely with the owner to balance risk and ensure that the contingency is appropriate without inflating costs unnecessarily.
• Risk and Soft Costs: The more risk the CMAR assumes within the GMP, the more contingencies may be included to manage that risk. By maintaining clear communication and collaborative decision-making, the owner and CMAR can ensure that risk is managed effectively without impacting the project scope or budget.

Construction management agency is a type of project delivery method in which a construction manager is hired by the owner to provide construction management services on a fee basis.

In this arrangement, the construction manager acts as the owner’s agent and is responsible for overseeing the construction process, including the selection of subcontractors, procurement of materials, and management of the construction budget and schedule. The construction manager is typically not responsible for providing any design services or assuming any risk for cost overruns. This delivery method is often used when the owner has already engaged an architect or engineer to design the project and is looking for someone to manage the construction process.

Benefits of CMa

• Bond Cost Savings: The owner benefits from reduced bond costs, as the CMa is not responsible for direct construction risks.
• Collaborative Team from Inception: CMa fosters collaboration between all stakeholders, ensuring that the team works together from the very start of the project.
• Open Book Competitive Pricing: By managing bids from specialty subcontractors, the CMa ensures transparency and cost efficiency through competitive pricing.
• Local Participation Opportunities: Breaking the project into smaller bid packages encourages greater local participation, which supports the community and enhances project diversity.
• Value Analysis During Design: The CMa assists with value engineering early in the design phase, helping the owner optimize costs without sacrificing quality.
• Improved Time of Delivery: Overlapping design and construction activities streamline the project timeline, reducing the overall delivery time.
• Change Order Management: The CMa manages change order pricing efficiently, ensuring fair and transparent adjustments to the project as needed.
• Flexibility in Scope Development: A well-defined scope is not required upfront, offering flexibility to refine the project as it progresses.
• Owner Control of Design: The owner retains full control of the design, ensuring that their vision is fully realized without compromise.
• Team-Based Approach: The CMa and A/E work as a team to act in the owner’s best interest, collaborating to develop the project scope, budget, and schedule.
• CM assists during design process with budgeting and schedule
• Owner Control of Design: The owner retains full control of the design, ensuring that their vision is fully realized without compromise.
• Assistance During Design: The CMa provides valuable input during design, offering budgeting and scheduling expertise that keeps the project aligned with the owner’s goals.
• Non-Adversarial Approach: By removing adversarial elements, the CMa reduces risks for the owner and creates a cooperative project environment
• Qualification-Based Selection: Selecting the CMa based on qualifications, rather than just cost, ensures that the project benefits from experienced management tailored to its specific needs.
• Cost Savings: Owners often experience cost savings due to the transparent, collaborative nature of CMa, where decisions are made with the owner’s best interests in mind.

Key Considerations for CMa Success

• No GMP: A Guaranteed Maximum Price (GMP) is not part of the CMa approach.
• Design Completion Before Construction: The project’s design must be completed before starting construction.
• Risk Management with Subcontractors: The CMa is not contractually linked to subcontractors.
• Managing Multiple Prime Contracts: The owner may be responsible for managing multiple prime contracts, but the CMa provides expert coordination to streamline this process and minimize risk.
• Subcontractor Payments: Although the owner handles payments for multiple primes, the CMa manages the process efficiently, ensuring that contractors are paid fairly and on time.
• Warranty Services: Managing warranties may require coordination across multiple contractors, but with the CMa’s assistance, warranty claims are handled promptly and effectively, ensuring long-term project satisfaction.

General contracting is a type of project delivery method in which a general contractor is hired by the owner to oversee the construction of a project. In this delivery method, the general contractor is usually the one who assumes the most risk for any cost overruns or delays.

Benefits of General Contracting

• Simple Decision-Making Process: The owner works directly with the general contractor, simplifying communication and decision-making throughout the construction phase.
• Competitive Pricing: By seeking competitive bids from subcontractors, general contractors can often secure competitive pricing for different aspects of the project.
• Clear Scope of Work: The general contractor ensures that the scope of work is clearly defined and managed, reducing misunderstandings and miscommunications during construction.

Key Considerations for General Contracting Success

• Advocacy and Collaboration: The general contractor is not in a formal advocacy role, so the contractor may not ensure the owner’s interests are prioritized throughout the project.
• Cost Control and Value Engineering: Cost control may be more reactive in this model.
• Cost Efficiency and True Value: While some may believe that general contracting offers the lowest cost, you may miss out on the best overall value that can come with other delivery methods.
• Managing Change Orders: Change orders can arise when unforeseen conditions or design changes occur.
• Owners Role in Risk Management: The owner assumes more risk in general contracting.

In a design-build construction delivery method, a single entity (the design-build team) is responsible for both the design and construction of a project.

Benefits of Design-Build

• Single Point of Responsibility: The design-build team is fully accountable for both the design and construction, simplifying communication and ensuring project success.
• Upfront Lump Sum Cost: The design-build approach typically provides a lump sum cost early in the process, offering the owner financial certainty.
• Faster Project Delivery: Design and construction phases can overlap, leading to significant time savings and accelerated project completion.

Key Considerations for Design-Build Success

• Clear Scope of Work: A well-defined scope is essential at the outset to ensure alignment between the design-build team and the owner. Bridging Documents can be used to guide the initial vision.
• Managing Changes: Any adjustments due to gaps in the initial scope can lead to changes. However, proactive planning and communication can mitigate this risk, keeping the project on track.
• Owner’s Role in Design: While the owner may delegate some control over the design process to the design-build team, active collaboration ensures that the project meets the owner’s expectations.
• Complex Projects: Design-build can sometimes be challenging for highly complex projects. However, with a well-structured team and clear communication, even intricate designs can be successfully implemented.

Integrated Project Delivery (IPD) is a construction delivery method that fosters a truly collaborative approach to the design, construction, and operation of a project, bringing together all stakeholders from the very beginning to achieve the best possible outcomes.

Benefits of IPD

• True Collaborative Team: IPD creates an environment where the entire project team works together with shared goals and open communication.
• Best Outcomes: By leveraging the collective expertise of the team, IPD delivers the most innovative and efficient project solutions.
• Waste Reduction: The integrated approach eliminates inefficiencies in design and construction, reducing waste and optimizing resources.
• Clear Accountability: Establishing the right point of contact for each task ensures clear communication and streamlined project management.
• Improved Productivity: Collaboration and early involvement of all team members lead to smoother workflows and increased productivity on-site.
• Enhanced Project Value: IPD maximizes project value by focusing on the best solutions and minimizing costly changes.
• Innovative Construction Methods: The integrated approach encourages new ways of thinking and creative solutions that improve construction methods.
• Cost Savings: By reducing the need for change orders and addressing issues early, IPD results in significant cost savings for the client.
• Better Field Work Tactics: With a team-first mindset, IPD promotes innovative strategies to tackle fieldwork challenges effectively.
• Improved Client Outcomes: The collective focus on optimizing production techniques and reducing costs leads to better results for the client’s bottom line.

Key Considerations for IPD Success

• Team Commitment: IPD thrives when team members embrace a “project first, not me first” mentality, prioritizing collaboration over individual interests.
• Pre-Construction Investment: A strong pre-construction effort lays the foundation for success, allowing the team to explore innovative ideas and optimize project value early on.
• Active Owner Involvement: IPD encourages active participation from the owner throughout both the pre-construction and construction phases, ensuring their vision is integrated into every aspect of the project.