Construction Management At Risk

Construction Management At Risk: This delivery method overlaps the design and construction phases to obtain significant construction input during the design phase of the project. The owner selects the architect/engineer and then selects the general contractor to perform professional construction management services for a fee that will result in a guaranteed maximum price for the construction work.

During the schematic design and design development, the construction manager will provide:
• Cost estimating
• Scheduling
• Construction reviews
• Value engineering

At the end of design development the construction manager assigns a guaranteed maximum price for the construction before the drawings are complete and before the subcontracts have been competitively bid. The construction manager is “at risk” for the guaranteed price.

This delivery method is similar to design-bid-build because the owner holds two contracts, one with the designer and one with the general contractor. The main difference is the general contractor is selected based on qualifications and provides professional services in the early design stages.

Many owners choose this delivery method since it requires less administrative and organizational changes than design-build while still taking advantage of collaboration between the designer and the general contractor.