Time is Money: A Strong Case for CMaR

The adage “time is money” rings truer than ever in today’s construction marketplace. As project timelines and budgets tighten to align with the current economic climate, the role of a Construction Manager (CM) has never been more impactful. Involving a CM from the inception of a project unlocks tangible benefits, provides cost-certainty, and ensures smoother project delivery.

Uncovering Critical Insights: Construction Manager at Risk (CMaR)

Project delivery methods that go through a design phase and are subsequently bid out to hire a builder are typically referred to as design-bid-build (DBB). This process brings the construction manager on board during the later stages of project planning, missing critical insights from an experienced CM. The Construction Management Asoociation of America cites that DBB projects average 6-12% cost growth between award and completion, versus 2-6% for CMaR projects.

The CMaR process is a project delivery method in which the CM serves as a collaborative partner. They can provide both preconstruction and construction services while holding the financial risk of project delivery within a Guaranteed Maximum Price (GMP). This approach is designed to provide cost-certainty, foster transparency, accountability, and collaboration among all stakeholders. It provides the owner with a single point of accountability and information.

During the preconstruction phase, the CM works closely with the owner, architect, and design consultants to evaluate and assess the project program, schedule, and budget. Preconstruction services include:

  • Internal cost estimating
  • Value management
  • Scheduling
  • Constructability reviews
  • Development of bid packages

Once the design is sufficiently developed, the project is publicly advertised to maximize local subcontractor involvement. Subcontractors are selected through an RFQ process, where they are pre-qualified for each project and invited to bid based on a joint review by the owner and the construction manager.

Throughout construction, the project is managed with a focus on quality, safety, and schedule adherence. The process concludes with a comprehensive closeout phase, including final inspections, commissioning, and delivery of all required documentation.

Early Engagement = More Project Success

The shift towards early CM engagement streamlines the way projects are managed and executed and sets the stage for project success in many ways.

Enhancing Team Experience– Working closely with architects, engineers, and owners early in the project fosters a collaborative approach to realizing construction projects. This synergy streamlines communication, ensuring that everyone is on the same page and significantly reducing misunderstandings.

Lowering Project Risk– Early involvement allows CMs to identify potential issues and risks on paper, long before they become critical problems in the field. CMs can identify challenges and devise effective mitigation strategies and creative solutions, ensuring the project remains on track and within budget.

Reducing Changes– Construction managers bring valuable insights into the constructability of designs, leading to more efficient and feasible designs, leading to a more efficient preconstruction phase and comprehensive final designs. This experience ensures that the design meets the owner’s goals and the architect’s intent but is also practical and cost-effective to build.

Driving Value– Realistic cost assessments through each stage of design identifies cost-saving opportunities early without compromising quality.

Confidence in Project Timelines– Developing comprehensive site logistics and realistic project schedules in early planning helps to ensure that the project is completed on time.

Interested in learning more about how CMaR can benefit your project? Visit https://www.krausanderson.com/construction/ for more information.

CATEGORY: Construction