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CM at risk (construction manager at risk)

A delivery method in which a construction manager joins during design as an adviser, then takes on the risk of building the project for a guaranteed maximum price.
2 min readUpdated 13 November 2026

Construction manager at risk (CM at risk, or CMAR) is a delivery method, common in North America, in which the owner hires a construction manager while the design is still being developed. The construction manager first advises on cost, sequence and buildability; then, once the design is far enough along, agrees a guaranteed maximum price (GMP) and takes on the risk of delivering the work within it, usually by letting trade packages.

At a glance

ContractsOwner with designer; owner with construction manager (two separate contracts)
PhasesPreconstruction services, then construction under a GMP
PriceGuaranteed maximum price, often with shared savings
Similar toEarly contractor involvement and two-stage tendering in the UK
BIM roleModel-based estimates, constructability reviews and 4D during design

The parts

  • Preconstruction services: cost plans, programme, constructability and phasing advice during design.
  • GMP proposal: the construction manager's price, based on the design documents at an agreed stage, with allowances and contingency.
  • Trade packages: the work let to trade contractors, often by open tender.
  • Open book: costs are visible to the owner; savings below the GMP may be shared.

How it is used on projects

The construction manager's early involvement is where BIM pays off: quantities from the design model support each cost plan, 4D sequences test phasing, and constructability reviews in the model find problems while they are still cheap to fix. The GMP is usually set from a design that is not yet complete, so the model at that milestone and its stated level of information need matter: what is not in the model at GMP becomes an allowance or a later change.

Variations

  • CM agency (CM as adviser): the construction manager advises but does not take the price risk.
  • Two-stage design and build in the UK and early contractor involvement in Australia work in a similar way.
  • Progressive design-build gives one party both design and construction, with a price set part-way through.

Common misunderstandings

  • "GMP means the price can't change." Owner changes in scope still change the price; the GMP covers the agreed scope.
  • "Preconstruction is free." It is usually paid as a separate fee.
  • "The construction manager owns the design." Design responsibility stays with the designers.

Where to read more

The Construction Management Association of America (CMAA) and the AGC's published guides to project delivery methods; the IPD entry; the lessons on quantities and cost of change on this site.

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