CMr Is the Hybrid That Combines Early Collaboration With Contractor Risk
The Construction Manager at Risk (CMr) model is one of the most widely used delivery methods in healthcare, education, and large commercial construction. It is also one of the most heavily tested delivery methods on the ARE PcM division. The defining characteristic of CMr is that the construction manager holds the trade contracts and takes on financial risk for the cost of construction - typically through a Guaranteed Maximum Price (GMP) commitment.
Unlike the CMa (agent) model, the CMr is essentially a general contractor that is hired early and works collaboratively with the design team during design phases. This early involvement allows the CMr to provide cost feedback, schedule input, and constructability review while the architect is still designing - before the owner is committed to a construction cost.
Preconstruction Services: The Unique CMr Advantage
The CMr is typically hired based on qualifications and a fee for preconstruction services, not a competitive lump-sum bid. Preconstruction services include: early cost estimating (often at SD and DD phase), schedule development, constructability review of design documents, subcontractor market analysis, and phasing recommendations. This collaborative approach between architect and CMr during design is what distinguishes CMr from traditional DBB.
The architect benefits from having a construction professional reviewing documents as they develop. Issues of coordination, construction sequence, and trade contractor availability are surfaced early rather than at bid time. This typically results in fewer surprises when the GMP is established.
The Guaranteed Maximum Price (GMP)
The GMP is the centerpiece of CMr delivery. The CMr typically commits to a GMP when construction documents reach 50–80% completion. If actual construction costs exceed the GMP, the CMr absorbs the overrun (subject to owner-directed changes). If costs come in under the GMP, many contracts include a shared savings clause - the owner and CMr split the savings according to a negotiated percentage.
The GMP is established through an open-book process where the owner can review the CMr's cost estimates, subcontractor bids, and fee calculations. This transparency is a major advantage of CMr over traditional DBB.
AIA Documents for CMr Projects
- AIA A133: Standard Form of Agreement Between Owner and Construction Manager as Constructor (with GMP)
- AIA B133: Standard Form of Agreement Between Owner and Architect for use with Construction Manager as Constructor
- AIA A201: General Conditions (used as the basis, modified for CMr context)
CMa vs. CMr: The Critical Distinction
| Factor | CMa (Agent) | CMr (at Risk) |
|---|---|---|
| Holds trade contracts | No (owner holds them) | Yes |
| Financial risk | Owner bears all cost risk | CMr bears risk above GMP |
| GMP | No | Yes |
| Selected by | Qualifications/fee | Qualifications/fee |
| Preconstruction services | Yes | Yes |
Key Exam Points
- CMr holds subcontracts and bears construction cost risk above the GMP.
- Preconstruction services are a distinct and compensated phase in CMr delivery.
- GMP is typically established at 50–80% CD completion.
- Cost savings below GMP are often shared - know the typical mechanism.
- The AIA A133 governs CMr; contrast with C132 for CMa.
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