Construction Management at Risk (or CM at Risk) is a method where the construction manager commits to deliver a project within a guaranteed maximum price (GMP).
In CM at Risk, the construction manager acts as a consultant to the owner during the preconstruction phase of the project (development and design) and as the general contractor during construction.
Construction Management at Risk is an established and widely-accepted approach to producing a quality project in a collaborative format, while avoiding the pitfalls typically associated with “hard- bidding” a project.
We believe the selection of a construction management firm should be based on many considerations; foremost of these is compatibility, immediately followed by trust, reputation, and experience.
Equally, the negotiation process should be a mutually beneficial one based on trust between the parties. The owners or owners’ representative looks to the construction manager to ensure the project is conceived and completed as efficiently and cost-effectively as possible, while maintaining the integrity of the design.
“Historically, owners felt compelled to hard-bid a project to ensure they were getting the lowest price. CM at Risk allows us to work collaboratively with the owner from the onset of the project to understand his or her needs and translate them into a design that meets the budget.”
- Ed Masi, President
Seawood is so committed to CM at Risk being the best way to collaborate that we rarely, if ever, participate in a hardbid process to obtain a project.
Some clear advantages of Construction Management at Risk are:
- Stronger coordination between architect/engineer and construction manager equals increased project speed.
- A centralized, single contract creates enhanced synergies throughout the process.
- All costs and fees are in the open, which enhances transparency.
CM at Risk is a fundamental shift in construction. This superior, proven method creates strong alliances between owner and builder, which result in long-lasting relationships that go far beyond profit.