Construction Management At Risk (CMAR) is project delivery method. This method is also called as Construction Manager At Risk.
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What Is Construction Management At Risk Method
The CMAR project delivery method involves hiring a construction manager early on in the process to manage the project throughout each phase, ensuring it stays on budget and on schedule.
The construction manager can be an individual or a firm, depending on the project’s size, and larger projects may require an entire construction management team overseeing the process.
The owner’s preference determines the number of managers required, as they may prefer the assurance of a team’s expertise or would rather collaborate with a single individual.
The CMAR method establishes a Guaranteed Maximum Price (GMP), which is a price limit that the project cannot exceed, and the construction manager is contractually bound to adhere to the GMP.
If the project goes over budget, the construction manager is financially liable, hence the term “at risk.”
How It Works
The CMAR project delivery method works by involving a construction manager (CM) early in the design phase to collaborate with the design team and owner throughout the project.
The CM serves as the owner’s representative and is responsible for coordinating all construction work to ensure that the project is completed on time and within budget.
During the design phase, the CM works with the design team and owner to determine the project’s scope and provide services like value engineering, which helps to minimize project costs and select efficient materials and equipment. .
Once the design is nearly completed, the CM determines the Guaranteed Maximum Price (GMP), which is an agreed-upon sum between the owner and CM.
This is an essential stage of the CMAR project delivery method, as the owner and CM sign a contract that binds the CM to the GMP.
The CM is financially liable for any costs that go over budget. The CM hires subcontractors and oversees all construction work to ensure that the project is completed on time and within budget.
Throughout the construction phase, the CM works closely with the owner and design team to ensure that the project is progressing as planned.
The CM provides regular updates on the project’s progress and any potential issues or delays that may arise.
By working off the GMP, the CM oversees all elements of construction to minimize project costs and maximize efficiency.
Pros
Construction Management at Risk (CMAR) offers numerous benefits for owners. This collaborative project delivery method is cost-effective and efficient, providing owners with a range of advantages.
One of the key advantages of CMAR is that owners are not responsible for increased budget costs. This is because the method involves collaboration between the owner, the construction manager (CM), and other project stakeholders. The CM provides value engineering services that help to reduce costs and ensure that the project stays on budget.
Another advantage of CMAR is that it saves time between project phases. The CM is involved in the project from start to finish, overseeing the design and construction. This means that there is a lower chance of the project running over budget. The CM has a personal stake in the project’s success and is therefore incentivized to stick to the agreed-upon price. This reduces the risk of change orders and mistakes during construction.
CMAR reduces the risk of errors and mistakes during construction. Since the CM is involved in the design phase, they are familiar with the project’s specifications and the required equipment and materials. This helps to reduce the risk of mistakes and errors, ensuring that the project is completed on time and within budget.
Cons
One of the main disadvantages of the CMAR method is that it tends to be more expensive than traditional project delivery methods. This is because CM fees are typically higher due to the CM’s increased liability and heavy involvement in projects.
The success of the CMAR method largely depends on the performance of the CM, which can be a significant risk for the owner. Any errors made by the CM can have a direct and consequential effect on the budget, schedule, and overall project outcome.
My Opinion
It is essential for the owner to carefully select a trustworthy CM with a successful track record in similar construction projects to ensure the success of the CMAR method.
FAQ
Some benefits of using CMAR include improved collaboration between the owner, architect, and contractor, faster project completion times, increased cost savings, and reduced risks for the owner.