Frequently Asked Questions

A Construction Manager at Risk (CM at Risk or CMAR) is a project delivery method where the construction manager is engaged early, during design, and assumes financial responsibility for delivering the project within a guaranteed maximum price (GMP).

The "at risk" part is critical: the CM has contractual accountability for cost and schedule. If the project exceeds the GMP, the CM absorbs the overage. If it comes in under budget, savings are typically shared with the owner.

This model creates alignment of interests. The CM isn't just advising - they're accountable.

These are different service models with different contractual structures, fee arrangements, and risk allocations.

Owner's Representative (OR) provides advisory services: monitoring progress, reviewing documentation, coordinating consultants, and advocating for the owner. The OR does not hold construction contracts or carry cost risk. Industry-standard OR fees typically range from 1-5% of construction cost.

CM at Risk combines advisory services during design with construction execution responsibility. The CM holds subcontracts directly and commits to a Guaranteed Maximum Price. CM fees typically range from 8-15% of construction cost, covering both pre-construction services and construction management.

In a traditional structure with an OR plus general contractor, the owner pays both the OR fee and the GC's markup (typically 10-20%). In a CMAR structure, the CM fee covers both functions.

The primary difference is contract structure and cost visibility, not the services themselves.

Lump-sum contracts (traditional GC): The contractor provides a single price that bundles labor, materials, subcontractors, overhead, and profit. The owner knows the total but not the component costs. If actual costs come in below the bid, the contractor keeps the difference.

Cost-plus with GMP (CM at Risk): Costs are disclosed line by line. The owner sees every subcontractor bid, material quote, and fee calculation. Savings against the GMP can be shared or returned to the owner per the contract terms.

Both structures can deliver successful projects. The difference is cost visibility and how risk and savings are allocated. CMAA and AIA publish standard contract documents for both approaches.

The architect's role in construction administration is defined by professional standards and contract documents, regardless of which delivery method is used.

Under AIA B101 (Owner-Architect Agreement), the architect's construction phase responsibilities include:

• Reviewing contractor submittals for conformance with design intent
• Evaluating the contractor's work for compliance with contract documents
• Certifying payment applications
• Interpreting contract documents when disputes arise

Under AIA A201 (General Conditions), the architect serves as the default Initial Decision Maker for claims between owner and contractor. The contract specifies that the IDM "shall not show partiality to the Owner or Contractor."

These responsibilities are enforced through state licensing requirements. Architects are held to a professional standard of care, defined in AIA B101 as "the skill and care ordinarily provided by architects practicing in the same or similar locality under the same or similar circumstances."

As early as possible. Ideally during schematic design, and no later than design development.

By the time construction documents are complete, approximately 80% of project costs are already locked in.

Early engagement allows the CM to influence decisions while they're still fluid:

• Is this foundation system the most cost-effective for this soil condition?
• Would steel or concrete framing make more sense given the current market?
• Are these ceiling heights driving mechanical costs that could be avoided?
• What's the permitting timeline look like, and how does that affect the schedule?

If you don't yet have an architect or design team, we can start even earlier. Our Feasibility Study evaluates your site, identifies permitting and geotechnical challenges, establishes a realistic budget range, and helps you assemble the right team before design begins.

Several professional organizations publish standards, research, and contract documents for different delivery methods:

• CMAA (Construction Management Association of America) publishes the Construction Management Standards of Practice and CMAR contract documents.
• AIA (American Institute of Architects) publishes contract families for design-bid-build, CM as Advisor, and CM at Risk arrangements.
• DBIA (Design-Build Institute of America) publishes the Project Delivery Primer comparing delivery methods.
• ConsensusDocs, endorsed by AGC and 40+ industry organizations, publishes contracts for all major delivery methods.
• EJCDC (Engineers Joint Contract Documents Committee) publishes the CMA-Series for projects with construction managers.

These organizations maintain delivery-method-neutral educational resources to help owners evaluate which approach fits their project.

In open-book cost-plus arrangements, transparency is structural rather than dependent on trust alone.

Specific mechanisms include:

• Subcontractor bid tabulations - multiple bids per trade, with the full spread visible to the owner
• Material quotes - vendor names, quantities, and unit costs disclosed
• CM fee - stated as a fixed percentage or lump sum, separate from cost of work
• General conditions - itemized rather than bundled into overhead
• Contingency tracking - allocations and draws documented separately

In lump-sum contracts, by contrast, these components are bundled into a single price. Neither structure is inherently superior - they represent different approaches to risk allocation and cost visibility.

Real cost transparency means you can trace any number back to its source.

In practice, this includes:

• Detailed cost breakdowns by trade, by phase, by specification section
• Bid tabulations showing all subcontractor proposals received
• Buy-out tracking comparing budgeted amounts to actual contracted costs
• Change order logs with full documentation
• Monthly cost reports showing budget, committed, and projected final costs

Budget overruns usually don't happen all at once. They accumulate.

Prevention requires three things:

1. Accurate budgeting from the start. A budget built on actual quotes and honest contingency planning.

2. Continuous monitoring. Real-time tracking of committed costs, pending changes, and projected outcomes.

3. Decision discipline. Quantifying the cost impact of decisions before they're made.

It depends on the engagement structure and project phase.

Pre-construction services are typically structured as a fixed-fee agreement covering specific deliverables.

Construction phase compensation is typically a percentage fee applied to the cost of the work.

Consulting engagements may be structured hourly or as fixed-fee scopes.

We're transparent about compensation structure from the initial conversation. There are no hidden fees or surprise charges.

We focus on complex residential projects - typically high-end custom homes, significant renovations, and estate-scale construction.

• Architectural ambition - working with design teams who are pushing boundaries
• Technical complexity - challenging sites, complex structural systems
• Coordination intensity - extensive consultant teams, custom fabrications
• Owners who value transparency

Budget ranges typically start around $3 million and scale up from there.

Yes - when they're technically complex.

A $400K hillside stabilization that requires caisson work, shoring coordination, and Grading Division approval benefits from construction management just as much as a $6M new build. Same with structural remediation, fire damage reconstruction, and foundation work where engineering coordination is critical.

The filter isn't budget - it's complexity. If the project has:

• Geotechnical challenges
• Structural coordination requirements
• Multi-agency permitting
• Scope that's difficult to define upfront

We're interested in the conversation.

That's actually the ideal time to start a conversation.

Complex projects - especially hillside sites, fire rebuilds, and properties with geotechnical unknowns - benefit from site intelligence before design begins. The geotechnical conditions, permitting requirements, and realistic cost parameters all shape what an architect can and should design. Without that information, design decisions get made in a vacuum.

Our Feasibility Study evaluates your site, identifies the challenges that will drive cost and schedule, establishes a budget range, and coordinates the early consultants your project needs - geotechnical engineer, surveyor, soils report. We organize the information that gives your architect a solid foundation to design from.

Once the site intelligence is in hand, we help you find the right architect for your project type, site conditions, and budget.

Los Angeles is home base. We know the subcontractor market, the permitting landscape, the soil conditions, the hillside regulations.

We're open to consulting engagements outside of LA for the right projects.

Timelines vary significantly based on project scope, site conditions, and regulatory requirements.

Design phase can range from 6 months to 2+ years depending on complexity and decision pace.

Permitting in Los Angeles varies dramatically - 4-6 months for flat lots, 18+ months for complex hillside projects requiring Zoning Administrator approval.

Construction depends on scope and complexity - 24-30 months is typical for a challenging hillside custom home.

Absolutely. We work with the design team you've chosen. Our role is to complement the architect's vision with construction expertise.

We've collaborated with a wide range of architectural practices, from internationally recognized firms to boutique Los Angeles studios.

Los Angeles has one of the most complex regulatory environments for residential construction in the country.

Topography. Much of the desirable residential land is hillside.

Seismic standards. California's seismic codes are among the most stringent in the world.

Fire zones. Large portions of LA fall within Very High Fire Hazard Severity Zones.

Permitting fragmentation. A single project may require approvals from LADBS, Planning, Fire, Public Works, LADWP, and potentially Coastal Commission.

Hillside construction in Los Angeles is governed by multiple overlapping regulations.

The Baseline Hillside Ordinance (BHO) limits building size based on lot slope and size.

Special Grading Zones require enhanced geotechnical review.

Haul routes must be approved for projects involving significant soil export.

The cumulative effect: hillside projects take longer to permit, cost more to build, and require more specialized expertise.

It depends on the project - but almost certainly longer than you expect.

Standard flat-lot projects: 4-6 months

Hillside projects: Add 4-8 months for Zoning Administrator approval

Special districts: Additional review extends timelines further

The Palisades fires destroyed thousands of homes, and the rebuilding process is unprecedented in scope.

Expedited permitting pathways exist for fire rebuilds to the same footprint.

Changes from previous design trigger standard review.

Contractor availability is constrained - pricing reflects demand.

Projects that start with realistic timeline and budget assessments will navigate the process more smoothly.

Pre-construction is where the project's success or failure is largely determined.

Our involvement typically includes:

• Conceptual budgeting
• Design phase estimating
• Constructability review
• Schedule development
• GMP preparation
• Value engineering

The budget we develop is the budget we'll be held to.

Qualification over price. The cheapest bid is rarely the best bid.

Competitive bidding with context. We present the full bid spread with our analysis.

Relationship accountability. We work repeatedly with subcontractors who perform well.

Scope clarity. Detailed scopes of work that clearly define what's included and excluded.

Construction management is not a passive activity.

Daily presence. Qualified supervision on site every working day.

Quality verification. Systematic inspection against drawings and specifications.

Schedule management. Monitoring actual progress against planned progress.

Documentation. Daily logs, progress photos, meeting minutes, RFI tracking.

Owner communication. Regular updates - you shouldn't have to chase information.