In an arrangement where the CM is involved before construction and guarantees a maximum price, what is this delivery method called?

In an arrangement where the CM is involved before construction and guarantees a maximum price, what is this delivery method called?

• A. Design-Build
• B. Integrated Project Delivery
• C. CM at-risk
• D. Design-Bid-Build

Answer: (C)

Construction Management at Risk involves bringing in the construction manager early in the project to provide preconstruction services, help develop budgets and schedules, and then deliver the project as the general contractor under a Guaranteed Maximum Price. The CM agrees to complete the work within that GMP, taking on the financial risk for costs that exceed it, which encourages strong cost control and coordination throughout design and construction. This arrangement allows the owner to keep design control and benefit from the CM’s expertise in constructability, procurement planning, and sequencing, while the price is effectively capped by the GMP. Unlike other delivery methods, the CMAR setup explicitly pairs early involvement with a price guarantee, aligning design decisions with cost realities as the project progresses.

Construction Management at Risk involves bringing in the construction manager early in the project to provide preconstruction services, help develop budgets and schedules, and then deliver the project as the general contractor under a Guaranteed Maximum Price. The CM agrees to complete the work within that GMP, taking on the financial risk for costs that exceed it, which encourages strong cost control and coordination throughout design and construction. This arrangement allows the owner to keep design control and benefit from the CM’s expertise in constructability, procurement planning, and sequencing, while the price is effectively capped by the GMP. Unlike other delivery methods, the CMAR setup explicitly pairs early involvement with a price guarantee, aligning design decisions with cost realities as the project progresses.