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05 |Topic 5

What is the different between Competitive Bid, CSP, CMA@R, Job Order Contracting?

C. CONSTRUCTION MANAGER AT RISK NOTES:

The Construction Manager at Risk (CMAR) delivery method allows the owner
to select a construction management firm (CM) that will act as a consultant
to the owner during the design phase, and then act as the general
contractor during the construction phase. In the vast majority of cases, the
owner and the CM will agree on a Guaranteed Maximum Price (GMP) for the
execution of the project.

Advantages
 Design phase assistance
 Single point of responsibility for construction
 Fast Schedule delivery
 Provides flexibility for change in design or scope
 CM would be liable for any amount in excess of the GMP

Disadvantages
 Since the guaranteed maximum price is generally settled before design
begins, it is difficult for owners to know whether they received the best
possible bid
 Lower competition in pricing, contractor overhead, fee, and subcontract
costs.
 All this causes CMAR jobs to cost more than competitive jobs in most
cases.

Bottom Line
The Construction Manager at Risk delivery method is best suited for large
projects—both new and renovation—that are difficult to define, likely to
change in scope, or schedule sensitive. It’s also useful in projects requiring
extensive management, whether due to technical complexity, multi-trade
coordination, or multiple phases.

Source: Pros/Cons of Design-Bid-Build vs. Construction Manager at Risk vs. Design/Build –
What's the Difference? (n.d.). Retrieved May 05, 2017, from
http://www.jacksongalloway.com/news/2016/4/12/comparing-three-popular-construction-
contracting-methods-designbuild-design-bid-build-and-construction-manager-at-risk

MAY 2017 RICE & GARDNER | 24
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