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Acronymsaka: CM at Riskaka: CMRaka: construction manager at risk

CMAR (Construction Manager at Risk)

In Plain English

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.

Definition

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.

Example

A county hospital uses CMAR delivery so the construction manager can review drawings for constructability during design and then commit to a GMP before full drawings are complete.

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