What is CMAR

Construction Manager at Risk - A Project Delivery Method

CMAR stands for Construction Manager at Risk.

This is a project delivery method, not a service package or consulting arrangement. The term describes a structural relationship between owner, architect, and construction manager that differs fundamentally from how most residential projects are delivered.

In traditional delivery, design is completed before a contractor is selected. The owner and architect work in isolation, then put the finished drawings out for competitive bids. The winning contractor arrives with no prior involvement, no shared context, and no opportunity to identify problems that were unknowingly designed into the project.

CMAR inverts this sequence. The construction manager joins the project during design, typically at schematic design or early design development, and remains through completion. This creates a different dynamic: cost intelligence exists while decisions are still being made, not after they've been documented and permitted.

The "at risk" component distinguishes CMAR from advisory construction management, where a CM provides oversight but doesn't build the project or carry cost exposure. A Construction Manager at Risk commits to a Guaranteed Maximum Price and delivers the work. The CM has skin in the game from the moment the GMP is signed.

Open Book Structure

CMAR operates on transparent accounting. Trade packages are competitively bid and those bids are shared directly with the owner, not summarized or embedded in line items. The owner sees actual costs. The CM's fee is a visible percentage or fixed amount. Contingency appears as its own line item with documented drawdowns. This visibility is structural, not discretionary. It persists through the project, not just at signing.

Fast-Track Capability

Because the CM is engaged during design, early work packages can proceed before the full GMP is established. Demolition, shoring, foundation work, and long-lead procurement can begin while later design phases continue. This parallel processing is structurally unavailable in traditional delivery, where construction cannot start until design is both complete and competitively bid.

Shared Savings and Contingency

The GMP includes contingency to cover unforeseen conditions and scope gaps. What distinguishes CMAR is how unused contingency is handled: rather than disappearing into contractor margin, it returns to the owner or is shared according to contract terms. The CM benefits from protecting the budget, not from spending it.

How Delivery Methods Differ

Every delivery method represents a different answer to the same questions: When does the contractor engage? Who carries cost risk? What visibility does the owner have? The right method depends on project conditions and owner priorities, not on one approach being universally superior.

Design-Bid-Build (Lump Sum)

Design is completed, then competitively bid, then built. The contractor provides a fixed price after reviewing complete documents. This works well when design is truly complete, site conditions are understood, and the owner values competitive pricing over early contractor involvement. The owner gains price certainty at bid acceptance but has no cost visibility during design.

Cost-Plus

The owner pays actual costs plus a fee, with no price ceiling. Final cost is known only at completion. This offers maximum flexibility when scope cannot be defined upfront, but creates open-ended exposure. The fee structure can also invert incentives: if the GC earns a percentage of cost, there is structural motivation to increase spending.

Design-Build

One entity provides both design and construction. This can streamline delivery when the owner doesn't require independent design representation. The tradeoff is that the architect works for the contractor, not the owner, eliminating the independent advocacy that separate contracts provide.

CMAR

The CM joins during design while the architect remains the owner's independent representative. Cost intelligence influences decisions in real time. The GMP establishes a ceiling before construction begins, with transparent accounting throughout. The CM becomes a collaborative partner to the design team rather than an adversary protecting margin.