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Glossary · Term 103

Construction Manager at Risk (CMAR)

Construction Manager at Risk is a delivery method where a construction manager joins during design and typically contracts to build the project.

Definition

Construction Manager at Risk, or CMAR, brings a construction manager into a project during design to provide input and, under a later or related agreement, build the work. The construction manager may offer a guaranteed maximum price, subject to the contract's definition of scope, contingencies, allowances, and change procedures. For an engineering firm, early contractor input can affect design coordination, constructability discussions, and the schedule for decisions. The firm's agreement should make clear which design tasks it owns, how comments are handled, and who is responsible for decisions and documents. CMAR is not design-build: the owner commonly retains a separate agreement with the design professional, while the construction manager has a construction role. The label alone does not determine risk or professional responsibility. Contract terms and project-specific arrangements establish the actual scope and obligations. The Construction Industry Institute offers construction industry resources, but the project agreement controls the parties' commitments.

How owners use it

  • Map the firm's design responsibilities against the construction manager's review and coordination role.
  • Track requested design changes that arise from early pricing or constructability discussions.
  • Example: If a project has a $500,000 construction contingency and $80,000 is approved for changes, $500,000 - $80,000 = $420,000 remains.
  • Check that the scope and schedule allow time to respond to contractor questions during design.
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