What Is a CMAR in Construction?

In the ever-evolving world of construction project delivery methods, the industry has seen a notable shift from traditional approaches toward more collaborative and efficient systems. One such method is CMAR, or Construction Manager at Risk. It has grown in popularity due to its unique structure that blends early-stage collaboration with cost control, making it especially attractive for complex, high-budget projects.

So, what is a CMAR in construction exactly? How does this model work? And why do so many owners and developers prefer it today over traditional approaches? This comprehensive guide will answer all of that and more.

🏗️ What Is a CMAR in Construction?

CMAR (Construction Manager at Risk) is a project delivery method where the construction manager is brought into the project early to collaborate during the design phase and then assumes the responsibility of delivering the project within a Guaranteed Maximum Price (GMP) once construction begins.

✅ CMAR = Advisor During Design + Builder During Construction + Cost Risk Taker

This method provides the owner with both design input and price certainty, combining the benefits of preconstruction collaboration with the accountability of cost and schedule performance.

📋 Key Components of the CMAR Model

To better understand CMAR, it’s essential to break down its key elements:

1. Early Involvement

The CMAR is hired before or during the design phase. They advise on constructability, budgeting, scheduling, and potential risks.

2. Guaranteed Maximum Price (GMP)

Before construction begins, the CMAR commits to a GMP. If the project goes over this amount (and the scope hasn’t changed), the CMAR absorbs the excess cost.

3. Separate Design and Build Contracts

Unlike the design-build model, the owner holds separate contracts—one with the architect/engineer and one with the CMAR.

4. Open Book Accounting

Many CMAR projects use transparent pricing models, where the owner can review cost details and subcontractor bids.

🔁 CMAR Workflow: From Preconstruction to Completion

🛠️ Phase 1: Preconstruction

• CMAR collaborates with architects/engineers
• Reviews design documents for efficiency and feasibility
• Offers cost-saving alternatives through value engineering
• Assists in schedule development and long-lead item procurement
• Develops preliminary budgets and risk assessments

💰 Phase 2: GMP Proposal

• CMAR prepares a Guaranteed Maximum Price based on finalized or near-finalized plans
• Includes costs for labor, materials, overhead, fees, contingencies

🚧 Phase 3: Construction

• CMAR transitions into the general contractor role
• Manages subcontractors, enforces safety and quality standards
• Tracks schedule, budget, and project milestones
• Delivers the project within the GMP and agreed-upon timeline

📊 CMAR Compared to Other Construction Methods

🧰 Roles and Responsibilities of a CMAR

The Construction Manager at Risk plays an extensive role throughout the project. Their responsibilities include:

During Preconstruction:

• Budget development and refinement
• Schedule creation and monitoring
• Material and methods recommendations
• Constructability analysis
• Cost-saving (value engineering) recommendations

During Construction:

• Managing subcontractor bidding and hiring
• Enforcing contract compliance
• Ensuring jobsite safety and quality
• Maintaining cost control and reporting
• Resolving field issues and change requests

💵 What Is a Guaranteed Maximum Price (GMP)?

The GMP is one of the core features of the CMAR model. It acts as a financial safety net for the project owner.

🔒 How it Works:

• The CMAR calculates and agrees upon the maximum total cost of the project based on the current design documents and assumptions.
• If costs exceed the GMP (without changes in scope), the CMAR pays the difference.
• If costs come under the GMP, savings can be:
  • Returned to the owner
  • Shared between the owner and CMAR
  • Retained by CMAR, depending on the contract

This risk-sharing model incentivizes efficiency, accuracy in estimating, and value-conscious construction decisions.

🏆 Benefits of the CMAR Method

✅ Early Expertise

Involving the CMAR during the design stage brings construction intelligence to planning decisions.

✅ Budget Control

The GMP gives owners a reliable ceiling for construction costs, providing financial predictability.

✅ Time Savings

Because design and construction can overlap, projects using CMAR are often delivered faster.

✅ Quality and Safety Focus

CMARs are responsible for construction execution, giving them incentive to maintain high standards.

✅ Reduced Change Orders

With better coordination and early involvement, unexpected changes are minimized.

⚠️ Disadvantages and Risks of CMAR

❌ Complex Contract Management

The owner must manage contracts with both designer and CMAR, requiring coordination and legal oversight.

❌ Potential for Scope Disputes

If the project scope is not clearly defined, disputes may arise about what is or isn’t included in the GMP.

❌ Conflict of Interest Risk

The CMAR might prioritize decisions that serve their own cost interests unless closely monitored by the owner.

❌ Higher Preconstruction Costs

Engaging a CMAR early may add upfront costs, though they often lead to savings later in the project.

🧾 Legal Aspects and Contract Types

Construction Manager at Risk contracts are commonly written using standard templates such as:

• AIA A133: Standard form of agreement between owner and CMAR
• AIA A134: Agreement with design-builders when CMAR is used
• Custom CMAR contracts: Especially in government or institutional projects

These contracts detail:

• Definitions of GMP
• Change order procedures
• Dispute resolution methods
• Payment schedules and retainage clauses
• Risk and insurance requirements

Proper legal drafting is critical to clarify cost inclusions, scope definitions, and contingency usage.

🧭 When Should You Use CMAR?

CMAR is best suited for:

• Large-scale commercial or institutional projects
• Projects with tight timelines
• High-budget builds with multiple stakeholders
• Public sector projects requiring cost transparency and competitive subcontractor bidding
• Projects where owners want to retain control over design but also benefit from construction input

🏫 Real-World Examples of CMAR Projects

1. University Campuses
   • Multiple buildings constructed on tight timelines and phased occupancy.
2. Hospitals
   • Complex mechanical and structural requirements demand early construction coordination.
3. Airports & Transit Facilities
   • Fast-track delivery, regulatory compliance, and limited shutdown windows favor CMAR.

🧠 Tips for Owners Considering CMAR

• Choose your CMAR wisely: Look for experience, financial strength, and collaborative style.
• Define the scope clearly: Avoid ambiguities that can lead to GMP disputes.
• Use detailed contracts: Cover change orders, contingency usage, and reporting responsibilities.
• Hold regular meetings: Continuous communication between owner, designer, and CMAR ensures alignment.
• Leverage open-book practices: Monitor costs throughout the project for transparency and accountability.

📚 Conclusion

In summary, a CMAR in construction refers to a Construction Manager at Risk, a delivery method that offers early contractor involvement, cost guarantees, and a collaborative planning process. This model empowers owners with budget predictability and design control while shifting construction cost risk to the contractor.

Whether you’re building a school, hospital, or a corporate headquarters, CMAR provides a strategic option that merges the best of traditional and modern construction delivery systems—making it a smart choice for complex and high-priority projects.

❓ Frequently Asked Questions (FAQs)

Q1. What does CMAR stand for?

A: CMAR stands for Construction Manager at Risk, a delivery method in which the contractor provides preconstruction services and then guarantees the cost of the project through a GMP.

Q2. How is CMAR different from general contracting?

A: In CMAR, the contractor is involved early during the design phase and offers preconstruction services. In general contracting, the contractor is only brought in after design is complete and typically has no input on planning.

Q3. Is CMAR more expensive than traditional methods?

A: CMAR may have higher upfront costs due to early involvement, but it can reduce total project cost by minimizing change orders, delays, and inefficiencies.

Q4. Who sets the Guaranteed Maximum Price (GMP)?

A: The CMAR sets the GMP based on near-complete design documents, and it must be reviewed and approved by the owner.

Q5. Can CMAR be used in public projects?

A: Yes. Many public agencies and municipalities use CMAR because it offers transparency, risk control, and better cost forecasting.

Q6. Do CMAR projects require competitive bidding?

A: Yes. While the CMAR is selected based on qualifications, the CMAR typically conducts competitive bidding for subcontractors to ensure fair pricing.