26 Sep What is Construction Management-At-Risk?
What is Construction Management-At-Risk?
Looking to build, but don’t want to go the design-bid-build route? Consider Construction Manager at Risk (CMAR). Construction Manager at Risk is an innovative delivery method that can reduce the time to completion of a construction project. A construction management firm (like Hurd Construction Management) acts as an owner’s consultant during the pre-development phase of the project. Though this is the case, a CMAR may be brought in during the initial planning and pre-planning stages, during the design and drawing phases, or at the pre-construction stage.
As an owner, you would still choose a design firm that you will retain, but while you work with them on the early stages of the design process, a second contract will be initiated with a construction manager once the design process is within 30-60 percent of the development. By adding this step, you can ensure that the CMAR firm (construction manager) and selected designer can collaborate on behalf of the owner.
The benefits of using a Construction Manager at Risk to you
The construction manager will also commit to delivering a particular project within the guaranteed maximum price within the 60 to 90 percent design phase of the project. This price is generally based on subcontractor bids in addition to contingencies and allowances.
The construction manager will communicate this anticipated cost, and are contractually bound to deliver the project to the exact specifications as defined in their guaranteed maximum price. Since the owner has an anticipated cost prior to bidding, the manager is also financially liable if the project exceeds that amount. There is usually a cost sharing agreement that is determined if the project happens to be completed for less than this anticipated cost.
Since the manager is the one who is financially at risk, they are able to choose pre-qualified subcontractors even if they may not be the low bidder. They may choose this option if that subcontractor is able to offer superior quality and will help them complete the work on time.
The construction manager acts as an advocate for the owner, thus they are responsible for managing the project. Through this clear and open process, the owner can see all of the costs associated with the project.
Looking for a Construction Management Company for a Construction Management-At-Risk Project?
Hurd Construction Management is a licensed commercial general contractor serving Florida, Georgia and the Southeast United States. We provide construction project planning, management and delivery for clients in the commercial office, retail, industrial, education, medical, restaurant and multi-family markets.
Our construction methods include both traditional and resource-efficient custom modular construction. We develop full turnkey building solutions tailored for each project’s unique challenges. In addition to our core construction management and contracting businesses, we also provide ongoing post-construction facility maintenance and management services. Our broad capabilities, deep experience and efficient approach to commercial building helps our clients save time, money and headaches.
Our mission is to fulfill the demand for high-quality, resource-efficient commercial real estate and construction management services by being a trusted provider of smart, integrated CRE solutions for clients throughout the Southeast United States, and the world.