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Project Managementaka: CMaka: CMARaka: CMRaka: construction management firm

Construction Manager

In Plain English

A professional hired to manage and coordinate all aspects of a construction project on behalf of the owner.

Definition

A construction manager (CM) is a professional or firm engaged by the owner to provide management and advisory services during design and/or construction. In a Construction Manager at Risk (CMAR) delivery method, the CM holds subcontracts and is responsible for delivering the project within a Guaranteed Maximum Price (GMP). In a Construction Manager as Agent (CMA) model, the CM manages but does not hold contracts.

Why It Matters in Bidding

Whether a project uses a construction manager and which model it follows determines how a contractor competes for and prices the work. Under CM at Risk the CM holds subcontracts and commits to a GMP, so subs bid to the CM, while under the agency model the owner contracts directly. Recognizing the structure tells estimators who awards their scope and how risk is allocated.

Example

On a hospital expansion delivered as CM at Risk, the construction manager runs preconstruction estimates during design, then solicits and holds the mechanical, electrical, and structural subcontracts under a guaranteed maximum price.

Related Terms

Project ManagerProject Delivery MethodGeneral Conditions Cost

Frequently Asked Questions

A CM at Risk holds the trade subcontracts and carries financial responsibility to deliver within a guaranteed maximum price, acting like a contractor. A CM as Agent advises and manages on the owner's behalf without holding subcontracts or taking on construction price risk, so the owner contracts directly with trades and bears more exposure.
A general contractor is usually selected near the end of design through competitive bid and is bound primarily by the construction contract. A construction manager is often engaged earlier to provide preconstruction services like budgeting and constructibility review, and depending on the model may or may not hold subcontracts or guarantee a maximum price.
Under CM at Risk, yes, the CM solicits, evaluates, and holds the trade subcontracts, so subs submit proposals to the CM. Under the agency model, subcontractors typically contract directly with the owner, and the CM manages the procurement and coordination rather than carrying the contracts itself.

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