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Construction Manager at Risk

Under the Construction Manager at Risk (CMr) delivery method, the CMr acts in the same capacity as a CMa throughout the planning and design phases.  However, near the end of the design stage or after the majority of the work is bid out, the owner and the CMr negotiate a Fixed Price or Guaranteed Maximum Price (GMP) and enter into a contract.  The CMr manager awards subcontracts and bears the risks much like a general contractor in a Design-Bid-Build project.  Among these risks are price escalation, delays and responsibility for the performance of the work, including the work performed by their subcontractors.  With a GMP, the owner is in a “win-win” position. If the total construction cost is less than the GMP, the owner pays that actual construction amount. Should the total construction cost exceed the GMP, the owner pays only the GMP amount. The GMP may need adjustment due to scope changes or unanticipated site conditions