A delivery method where the construction manager provides design advice and then takes financial responsibility for building the project at or under a guaranteed price.
Construction Manager at Risk is a project delivery method in which the construction manager acts as a consultant during design and then takes on the role of general contractor for construction, assuming financial risk for delivering the project within a guaranteed maximum price. CMAR contracts allow the owner to benefit from the CM's preconstruction expertise—estimating, scheduling, constructability review—while the CM is incentivized to control costs because it bears risk beyond the GMP. CMAR is widely used for complex public projects and healthcare construction.
CMAR changes how estimators work because pricing happens collaboratively during preconstruction, culminating in a guaranteed maximum price the CM is contractually bound to honor. The estimator's takeoffs, subcontractor buyout, and contingency assumptions directly set the GMP and the risk the firm carries, since overruns above the GMP come out of the CM's pocket. Accurate early estimating and disciplined buyout are essential to protecting margin under this model.
Engaged early as CMAR on a hospital, the construction manager runs constructability reviews and progressive estimates during design, then commits to a guaranteed maximum price before locking in subcontractor buyout.
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