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Unformatted text preview: nstruction management may also include a
guaranteed maximum price (GMP), whereby the construction
manager guarantees that the construction cost will not exceed a
22 2.4.2 Construction Management At-Risk
• Agency construction manager is coordinator working on behalf of
owner, not contractually liable for successful completion of work.
• Owner, lack of experience in dealing with construction problems
and protocols, may be put at risk by poor decisions made by the
CMa while supervising and controlling the project.
• CM at-Risk: construction manager not only coordinates project,
but also assumes responsibility for construction phase, like a
construction contractor in DBB.
• The CM at-Risk signs all contracts related to the construction
phase of the work.
• The owner contracts separately with
– A designer: provide facility design, and
– A contractor (CM at-risk): perform construction management
services and construction work, in accordance with the plans
and specs 23 • The construction manager takes on direct responsibility for
construction means and methods, and trade contractors become
subcontractors to the construction manager.
• The construction manager often works under a guaranteed
maximum price (GMP) agreement with the owner.
• Sometimes called CM/GC because the construction entity provides
agency CM preconstruction services and then performs much like
a general contractor during construction. 24 Contractual Relationship in Agency CM and CM At-risk 25 Contractual Relationship in Design/CM 26 • Differences between CM at-risk and DBB?
1. CM at-risk: The contractor (CM) usually has ______________
__________________________. The owner can engage the
construction entity much earlier in the design process. Early
______________________ in design is also allowed.
2. CM at-risk: (result of above) Early planning allows phased
design and construction, advanced ordering of long lead time
items, and early construction start dates for...
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This document was uploaded on 01/28/2014.
- Fall '14