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Construction Manager at Risk (CM@R or CMAR)
Practical Law Glossary Item 2-546-6525 (Approx. 3 pages)
Glossary
Construction Manager at Risk (CM@R or CMAR)
Also referred to as Construction Manager as Constructor (CMc) or CM/GC (construction manager/general contractor). A widely used construction project delivery system in which the owner enters into a single agreement with a construction manager to act:
- In an advisory capacity during the planning and design phase (pre-construction).
- As the contractor or constructor to perform the actual construction.
The construction manager receives a fixed fee for services provided during pre-construction. After completion of the design development phase, the owner and construction manager agree on a price for the construction that usually:
- Is based on clearly stated assumptions about the project, including the uncompleted portion of the design.
- Is a fixed amount or a cost of the work plus a fee, with a not-to-exceed number or guaranteed maximum price (GMP).
- Has a contingency fund to cover clearly defined costs, including those associated with the completed design.
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