The Pros and Cons of the Construction Manager at Risk Delivery Approach

The commercial construction industry offers various project delivery methods, each with advantages and challenges. Among these, the Construction Manager at Risk (CMAR ) approach is gaining popularity for its collaborative nature and potential to deliver successful projects. In this article, we explore the pros and cons of CMAR and compare it to other delivery methods such as design-build, general contractor, and more. By understanding these options, businesses can make informed decisions about the best approach for their construction projects.

What is Construction Manager at Risk (CMAR)?

Construction Manager at Risk (CMAR) is a project delivery method that involves the construction manager’s commitment to deliver the project within a Guaranteed Maximum Price (GMP). This means that the construction manager takes on the risk of cost overruns, protecting the owner from unexpected expenses. CMAR is known for fostering a collaborative environment where the owner, architect, and construction manager work together from the early stages of design to construction completion.

Key Features of CMAR:

There are a few critical elements to the Construction Manager at Risk approach, including:

Early Involvement: The construction manager is involved in the project from the design phase, providing input on cost estimation, scheduling, and constructability.
Guaranteed Maximum Price: The construction manager agrees to a maximum price, ensuring the project stays within budget.
Collaboration: CMAR emphasizes teamwork between the owner, architect, and construction manager, leading to better decision-making and problem-solving.

Compare what a Construction Manager at Risk brings to the table with a general contractor to make the best decision for your building project.

Compare Delivery Methods

Pros of Construction Manager at Risk

Let’s take a look at some of the most appealing aspects of working with a CMAR service provider:

Improved Budget Control

One significant advantage of CMAR is improved budget control. Agreeing to a Guaranteed Maximum Price protects the owner from cost overruns, and the construction manager is incentivized to manage the budget effectively. This ensures that the project stays within financial limits, providing peace of mind to the owner.

Enhanced Collaboration

CMAR fosters collaboration among the project stakeholders. The construction manager, architect, and owner work closely from the project’s inception, ensuring design decisions align with budget constraints and construction feasibility. This collaborative approach reduces conflicts and improves project outcomes.

Early Issue Identification

With CMAR, potential issues can be identified early in the design phase. The construction manager’s expertise in construction methods and materials allows for the early detection of design flaws or budgetary concerns, enabling proactive problem-solving before construction begins.

Schedule Efficiency

The CMAR approach often results in more efficient project scheduling. The construction manager’s early involvement allows for detailed planning and sequencing of construction activities, reducing downtime and accelerating project completion.

Cons of Construction Manager at Risk

As with anything, weighing the possible downsides to a service, especially for something as large-scale as a construction project, is essential.

Potential for Higher Initial Costs

One potential drawback of CMAR is the higher initial costs compared to traditional delivery methods. The involvement of a construction manager from the early stages may lead to increased pre-construction fees, which can be a consideration for budget-conscious projects. However, the guarantee of a maximum spend should offer assurance that your budget will be maintained.

Complexity in Contract Management

CMAR can introduce complexity in contract management due to the need for multiple agreements between the owner, construction manager, and subcontractors. This complexity requires careful coordination and legal oversight to ensure all parties are aligned and meet contractual obligations.

Limited Design Control

While CMAR promotes collaboration, it may also lead to limited design control for owners who prefer more direct involvement in design decisions. The construction manager’s influence on design for cost and feasibility may not align with the owner’s aesthetic vision. Choosing a partner that demonstrates an ability to collaborate and incorporate your feedback is vital.

CMAR vs. Design-Build and General Contractor Delivery Methods

When comparing CMAR vs. Design-Build, one of the key differences is how responsibilities are distributed. In the Design-Build approach, a single entity is responsible for design and construction, simplifying communication and potentially speeding up project delivery. However, this can limit the owner’s control over design decisions. In contrast, CMAR allows the owner to retain separate contracts with the architect and construction manager, fostering greater collaboration and giving the owner more input into design and budget decisions.

On the other hand, the General Contractor (GC) method involves bringing in a contractor after the design phase, which can lower initial costs and simplify contract management. However, the lack of early collaboration can lead to miscommunication and a higher risk of cost overruns. In contrast, CMAR involves the construction manager from the start, enhancing cooperation, reducing conflicts, and providing more predictable costs through a Guaranteed Maximum Price.

A Look at Construction Manager at Risk Delivery in Varying Industries

At SHF, we specialize in the Construction Manager at Risk (CMAR) delivery method, offering expert services across a range of industries. Our approach ensures that projects are executed with precision, efficiency, and a focus on collaboration. Here are some real-world scenarios where SHF’s CMAR services provide significant value:

Retail

In the retail industry, flexibility and collaboration are key. SHF’s CMAR approach is particularly beneficial for retail chains planning to remodel multiple stores across different locations. Our construction managers work closely with retailers to ensure consistent design and construction quality while accommodating local regulations and market conditions. Early involvement allows SHF to align design elements with brand standards and customer experience goals, creating a cohesive shopping environment that enhances brand loyalty and sales.

Commercial Buildings and Office Spaces

SHF’s CMAR services offer the advantage of addressing complex design and operational requirements for commercial buildings and office spaces. Imagine a tech company expanding its office space to foster growth and innovation. SHF enables close collaboration between architects, engineers, and construction managers, resulting in a design incorporating modern technology, flexible workspaces, and sustainable features. Our approach ensures that the office environment supports employee productivity and reflects the company’s vision for the future.

Warehouse

Efficient layouts and logistics optimization are crucial for warehouses. Using the CMAR method, SHF collaborates with distribution centers to design facilities that maximize storage capacity and streamline workflow. Our construction managers provide insights into advanced storage solutions, such as automated racking systems, to improve inventory management and operational efficiency. This collaborative approach ensures that the warehouse design supports the company’s logistics needs and allows for future expansion, enabling businesses to scale operations seamlessly as demand grows.

Bar and Restaurant

In the bar and restaurant industry, creating spaces that balance functionality and ambiance is essential. SHF’s CMAR method helps restaurant owners establish unique dining experiences by integrating the latest kitchen technology with modern interior design. Our construction managers work closely with designers and chefs to optimize kitchen layouts for efficient workflow and ensure that the dining area reflects the brand’s aesthetic. This method allows for seamless coordination between the front and back of the house, enhancing both customer experience and operational efficiency, which is vital in a competitive industry.

Entertainment

Entertainment venues, such as theaters and concert halls, benefit significantly from SHF’s CMAR services due to the complex technical and design requirements. For theater renovations, our construction managers collaborate with acousticians, lighting experts, and architects to upgrade sound systems, improve stage visibility, and enhance seating comfort. This integrated approach ensures that the venue meets the high standards for exceptional audience experiences. CMAR also allows for the incorporation of cutting-edge technology, such as immersive audio-visual systems, to attract larger audiences and elevate the entertainment offering, making the venue a top choice for events.

Medical

In the medical sector, CMAR is invaluable for projects that require strict adherence to healthcare standards and regulations. SHF’s expertise in CMAR ensures that medical facilities are designed to enhance patient care and operational efficiency. Our construction managers work with healthcare professionals to modernize exam rooms, update medical equipment, and create welcoming waiting areas. By prioritizing compliance with healthcare regulations, SHF ensures that facilities meet all necessary standards while optimizing space for staff and patient needs. This approach improves the quality of care and boosts the facility’s reputation.

Government/Municipalities

Government buildings and municipal facilities often face unique challenges, such as outdated infrastructure and a need for improved accessibility. SHF’s CMAR services address these issues by upgrading public areas to meet ADA standards and implementing energy-efficient systems. Our construction managers work closely with municipal leaders to ensure that projects enhance community service delivery and operational efficiency. By leveraging the CMAR approach, SHF can incorporate modern design elements that reflect community values, improve functionality, and create spaces that serve the public more effectively.

Education

Educational institutions benefit from SHF’s CMAR services by creating environments conducive to learning and development. Outdated classrooms and inadequate technology can hinder educational outcomes. SHF collaborates with schools and universities to update classrooms with modern technology, ergonomic furniture, and improved lighting. By designing collaborative spaces and updated labs, SHF provides students with hands-on learning experiences that better prepare them for future careers. Our focus on educational environments ensures that students can access the resources they need to succeed while institutions benefit from enhanced facilities that attract students and staff.

Experience the Benefits of SHF’s Construction Manager at Risk Services

For over a decade, SHF has helped businesses throughout Nevada, Utah, and Arizona maximize their budgets and minimize their risk during commercial construction projects. As your CMAR partner, we work closely with you to ensure your vision is brought to life, flawlessly executed, and delivered on time and within budget. Contact SHF today to discuss your upcoming project and determine if our CMAR approach is best for your job.