Construction Manager at Risk (CMAR) and Guaranteed Maximum Price

How the CMAR delivery method works, when and why owners select it, how the GMP is established and managed, and the architect's role throughout preconstruction and construction phases.

ARE · Practice Management

Overview

CMAR is a project delivery method where the owner hires a construction manager early in design to provide cost, schedule, and constructability advice. Then, once the design matures, that same entity takes on financial responsibility for building the project, typically under a Guaranteed Maximum Price (GMP).

This two-phase structure is what makes CMAR distinctive. During preconstruction, the CM acts as a trusted advisor, helping the owner and architect refine the design, flag costly details, and test budgets against real market conditions. Once a GMP is negotiated and accepted, the CM shifts into a contractor role, holding trade contracts and bearing the risk of cost overruns up to the guaranteed ceiling.

For the ARE, you need to understand when CMAR makes sense compared to other delivery methods, how the GMP gets established and adjusted, and what happens to the relationships among owner, architect, and CM once that price is locked in. The contractual structure is straightforward: two separate contracts flow from the owner, one to the architect and one to the CM at-Risk. No direct contract exists between the architect and the CM.

CMAR sits between traditional Design-Bid-Build and fully integrated approaches. It gives the owner early contractor input without surrendering design control. That balance is exactly why it keeps showing up on the exam.

Essential

CMAR goes by several names. CM at-Risk. CM/GC. CM as Constructor. CMc. They all describe the same core idea: a construction manager who first advises during design, then takes on the financial risk of building the project. The contractual structure is clean. Three prime players: the owner, the architect, and the CM at-Risk. Two separate contracts run from the owner, one to the architect for design services, one to the CM for preconstruction and construction. The architect and CM have no direct contract with each other. Selection of the CM at-Risk typically relies on Qualifications Based Selection (QBS) or Best Value based on fees, not lowest bid. Two Distinct Phases The CM's role splits into preconstruction and construction. During preconstruction, the CM provides advisory services: cost modeling, schedule analysis, constructability reviews, trade contractor market feedback, and coordination of long-lead procurement.

Professional

Consider a mid-size university planning a $45 million science building. The project has tight schedule constraints because the building must open for the fall semester, and the program includes specialized lab ventilation systems that require early coordination between mechanical engineers and the contractor. The university selects CMAR delivery. The CM is brought on during schematic design. During preconstruction, the CM identifies that the specified fume hood exhaust system requires 14-week lead times, which would delay the mechanical rough-in if procurement waits for completed construction documents. The CM recommends issuing an early bid package for the mechanical systems while the rest of the design continues. This kind of fast-tracking is one of CMAR's signature advantages. At 70% design development, the CM submits a GMP proposal of $43.5 million. The university's independent cost estimator had projected $42.8 million.

TLDR

CMAR delivery = CM advises during design, then takes financial risk for construction. Two phases, one entity.
Three prime players: owner, architect, CM at-Risk. Two contracts from the owner. No contract between architect and CM.
GMP = cost of the work + CM fee, capped at a maximum the CM guarantees not to exceed.
GMP is typically set at 50-90% design completion. Earlier = more contingency = higher price.
Open-book accounting: the CM shares all subcontractor bids and costs with the owner for transparency.
Savings below GMP can be returned to the owner, split (common: 75/25 owner/CM), or kept per contract.
"At-risk" means two things: (1) CM holds trade contracts and performance risk, and (2) CM guarantees a maximum price. These are related but separate.
AIA A133 = CMAR with GMP. A134 = CMAR without GMP. A132 = CM as Adviser (different role entirely).
Selection is QBS or Best Value based on fees. Not lowest bid.
CM's advisory role ends when GMP is accepted. Tension can arise when the advisor becomes the contractor.

ELI5

Think of building a house, but bigger. Normally, you'd hire an architect to draw the plans, then find a builder to construct what's on those plans. The builder shows up after the design is done, looks at the drawings, and gives you a price. That's Design-Bid-Build. CMAR works differently. You bring the builder onto the team while the architect is still drawing. The builder sits in the meetings, looks at the sketches, and says things like, "That wall detail is going to cost a fortune. What if we did it this way instead?" or "We should order the steel now because it takes three months to arrive." Super helpful. Then, once enough of the design is figured out, the builder says, "I'll build this whole thing for no more than $X." That number is the Guaranteed Maximum Price, the GMP. It's like a price ceiling.

AREPractice Management

Construction Manager at Risk (CMAR) and Guaranteed Maximum Price

How the CMAR delivery method works, when and why owners select it, how the GMP is established and managed, and the architect's role throughout preconstruction and construction phases.

2 min read214 words

Construction Manager at Risk (CMAR) and Guaranteed Maximum Price

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