CMAR (Construction Manager at Risk) Contracting

CMAR (Construction Manager at Risk) contracting is the project delivery method, where a recipient or subrecipient hires a construction firm or construction manager (CM) early in the design and planning process to manage the construction phase of the project. The CM provides design advice and manages construction, including the selection and coordination of subcontractors.

This approach is termed “at Risk” because the construction manager and the client agree on a Guaranteed Maximum Price (GMP) during the design phase. The CM is then responsible for covering any costs that exceed the agreed-upon amount, thereby assuming the financing risk of cost overruns.

• Early Collaboration: The CM joins the project during the design phase, contributing insights that can lead to cost and time efficiencies by addressing issues early.
• Guaranteed Maximum Price: Establishing a GMP early ensures the CM is responsible for any cost overruns, and reduces financial risk for the project owner.
• Compliance with Federal Standards: CMAR enhances project flexibility and efficiency. Through CMAR, the construction manager assists in maintaining compliance, facilitating competitive bidding processes, managing potential conflicts of interest, and ensuring that contractors adhere to public policies. However, it's important to note that specific CMAR practices might jeopardize FEMA award funding.
• Considerations: Due to its complexity, non-state entities should carefully consider CMAR Contracting for their projects, particularly regarding compliance with federal regulations and potential risks.

CMAR contracting offers a structured approach to managing construction projects, promoting efficiency, budget control and quality. Here’s why CMAR could be beneficial for your construction project: 

• Efficiency and Savings: Early involvement of the CM can identify cost-effective strategies and address potential design issues, avoiding costly adjustments during construction.
• Quality Assurance: CMAR creates a partnership that focuses on both the quality and functionality of the project. The CM’s direct involvement and interest in the project’s success contributes to a focus on quality and project functionality.
• Enhanced Communication: With the CM acting as the primary point of contact for all contractors, CMAR facilitates better communication among all parties, leading to effective decision making and project execution.
• Risk Management: By setting a GMP, this method reduces the financial risk for project owners, allowing for a more predictable and stable budget plan.

CMAR contracting is a valuable method for overseeing construction projects, especially those with complex requirements. By implementing CMAR, project owners can achieve a more predictable budget, improved project quality, and a streamlined construction process — ensuring a satisfactory outcome for all stakeholders.