Why CMAR

When early construction involvement and cost transparency matter more than competitive bidding and how to know if it's right for your project.

On complex residential projects, the decisions that most affect cost and schedule are made during design. The foundation system, the structural approach, the grading strategy, the shoring sequence, the material selections for high-lead-time assemblies - these choices establish the project's cost trajectory before the first permit application is submitted. Once those decisions are documented in construction drawings and permitted through plan check, changing them is expensive and slow.

CMAR - Construction Manager at Risk - exists to put construction knowledge into the design process when those decisions are being made, and when the project team has the most flexibility to adjust. The construction manager joins the architect and owner during schematic design or design development, contributes cost modeling, constructability analysis, and regulatory pathway planning as the design evolves, and then commits to a Guaranteed Maximum Price (GMP) and executes the construction. The pre-construction and construction functions operate under a single contract with the owner.

The value of CMAR is structural, not promotional. It is a delivery method - a way of organizing the relationships between owner, architect, and builder - and its advantages come from the timing of the construction manager's involvement and the alignment of financial incentives through the GMP. This page explains, through construction logic and real project conditions, why that structure produces better outcomes on projects where complexity, site conditions, or regulatory constraints make the gap between design assumptions and construction reality the primary source of cost and schedule risk.

For a detailed explanation of what CMAR is and how it works mechanically - the contract structure, the GMP process, the comparison to other delivery methods - see the companion page: What is CMAR.

Last updated: February 2026

About This Page

Written by Jeff Benson, Principal of Benson Construction Group, drawing on 24 years of construction management experience across commercial and residential sectors, including 18 years managing over $300M in complex residential projects as a senior project manager at Peter McCoy Construction. The content reflects real project conditions in Los Angeles residential construction, not textbook summaries.

1
The Problem CMAR Was Designed to Solve

The traditional approach to residential construction in Los Angeles follows a sequential pattern: the owner hires an architect, the architect designs the project through construction documents, the owner solicits bids from general contractors, and a contractor is selected - typically on the basis of price - to build what the architect has drawn. The contractor's first meaningful involvement with the project occurs after design decisions are complete, permits are in process, and the budget is being tested against a finished set of drawings.

On straightforward projects, this approach works well. When the site is flat, the soil conditions are predictable, the regulatory pathway is simple, and the scope is well-defined, competitive bidding among general contractors produces a fair price against a clear set of documents. The design-bid-build sequence is the most common delivery method in residential construction for a reason: on projects where the scope is knowable in advance, it produces competitive pricing and clear accountability.

On complex projects, the sequential separation of design and construction creates a structural gap. The architect designs based on the information available during design - the geotechnical report, the topographic survey, the regulatory framework as understood at the time. The contractor arrives after those decisions are documented and discovers the distance between design assumptions and construction reality. That distance is where cost overruns, schedule delays, and adversarial change order disputes originate.

This is not a failure of the architect or the contractor. It is a consequence of the delivery method's structure. The architect is designing without the benefit of someone who builds these projects evaluating constructability, equipment access, and trade coordination as the drawings develop. The contractor is pricing without having participated in the decisions that established the scope.

On hillside construction projects in Los Angeles, the gap between design assumptions and construction reality is frequently significant. Consider common conditions on complex residential sites:

A foundation system designed without assessing whether the drill rig can physically access all caisson locations from the site's available staging areas may require redesign - or expensive alternative drilling methods - once the contractor mobilizes to the site. The drill rig access question is a constructability issue, not a structural engineering issue, and it is best evaluated by someone who has positioned rigs on similar hillside sites.

A grading plan submitted to the Department of Building and Safety without first verifying that the proposed quantities comply with the Baseline Hillside Ordinance (BHO) maximum grading limits for the project's specific slope band and street classification can result in plan check corrections. On complex hillside submittals, those corrections can add months to the permit timeline - not because the plan was wrong, but because the regulatory constraint was not identified during design.

An excavation that encounters uncertified fill not identified during pre-construction geotechnical investigation can require removal and recompaction that significantly exceeds the original earthwork budget. Additional borings during pre-construction - before the budget and schedule are set - cost a fraction of what the same discovery costs during construction.

These are not unusual scenarios. They are common conditions on hillside residential projects in Pacific Palisades, Bel Air, Malibu, and Beverly Hills. The question is not whether the project team will encounter them, but when in the project timeline they are identified - and what options are available at that point to respond.

CMAR was developed to close the gap between design and construction on projects where that gap is the primary source of risk. By bringing the construction manager into the process during design, the team identifies site constraints, regulatory issues, and constructability problems when the response options are broadest and the cost to address them is lowest.

2
What Early Involvement Enables

The core value of CMAR is the timing of the construction manager's involvement. During schematic design and design development, the CM contributes construction knowledge to a process that is otherwise guided entirely by design intent and engineering analysis. The result is a set of construction documents that has been evaluated - before permitting, before pricing, before the GMP is set - for how the project will actually be built on the actual site.

The CM's pre-construction contributions fall into several categories, each tied to specific outcomes during construction.

Constructability Analysis

Constructability is the evaluation of whether the designed elements can be built on the specific site with available equipment, access, and methods. On hillside projects, constructability analysis during design addresses questions that significantly affect both cost and schedule.

Can the concrete pump reach all pour locations from the available street positions, or do pour joints need to be adjusted to accommodate a line pump? Can the crane service the entire building footprint from a single setup, or does the structural steel sequence need to account for crane repositioning? Can the retaining wall contractor access the rear of the site with their forming system, or does the wall need to be designed for a different construction method?

These are construction questions, not design questions. The architect is not expected to evaluate crane reach or pump placement. But when the CM evaluates them during design development, the architect can adjust details - pour joint locations, structural sequences, access provisions - while those adjustments are simple drawing changes rather than construction-phase change orders.

Real-Time Cost Validation

In a traditional delivery, the owner and architect learn what the project costs when bids come back - after design is complete. If bids exceed the budget, the team faces a difficult choice: redesign, value-engineer, or increase the budget. Any of those options adds time and cost to a process that is already months into permitting.

In CMAR, the CM models costs against the evolving design throughout schematic design and design development. As the architect develops the structural system, the CM prices it against current trade market conditions. As material selections are made, the CM validates them against the budget framework. When the design reaches a decision point - board-form concrete versus smooth trowel finish, steel moment frame versus wood shear walls - the CM provides the cost difference so the architect and owner can make an informed trade-off while the design is still fluid.

The budget develops alongside the design rather than arriving as a separate event after design is complete. By the time the GMP is established, the cost has been validated at multiple milestones against real trade pricing, and the distance between the GMP and the actual construction cost is narrow.

Regulatory Pathway Analysis

Los Angeles residential construction involves multiple regulatory agencies, overlapping permit requirements, and jurisdiction-specific constraints that interact with design decisions in ways that are not always apparent during design. The permitting landscape on a complex hillside project can include LADBS plan check, BHO grading review, Geology and Soils review, LAFD access compliance, coastal development permits, HOA architectural review, and haul route approvals - each with its own timeline and requirements.

The CM reviews the developing design against these regulatory frameworks during design development. BHO grading limits for the specific slope band and street classification. LAFD fire apparatus access requirements and their implications for driveway width, turning radius, and structural design of the access surface. Haul route restrictions (HCR) and their impact on earthwork sequencing and hauling windows. The goal is to identify conflicts between the design and the regulatory requirements while adjustments are straightforward - during design, not during plan check.

Discipline Coordination

Complex residential projects involve multiple engineering disciplines - structural, geotechnical, civil, MEP, landscape - whose work products must align at the interfaces. Foundation bearing elevations must coordinate with the grading plan. Drainage systems must work with the landscape design. Shoring must fit within property lines and easement constraints. Waterproofing details must account for the structural movement joints.

In traditional delivery, these coordination issues are often discovered during construction through RFIs - Requests for Information - that halt work while the design team resolves conflicts. In CMAR, the CM reviews interdisciplinary interfaces during design and flags coordination gaps before the documents go to plan check. The structural engineer's foundation plan gets checked against the civil engineer's grading plan during DD, not during excavation.

Schedule Development

A construction schedule developed after bid - based on the contractor's standard assumptions and the documents as drawn - may not account for conditions specific to the site. Hauling windows that restrict earthwork to specific hours and days of the week. Long-lead materials that need to be ordered months before the relevant scope of work begins. Seasonal constraints on concrete placement in exposed locations. Multi-agency permit sequences where one approval is a prerequisite for the next.

In CMAR, the CM builds the project schedule during pre-construction based on the actual site conditions, the actual permit sequence, and the actual procurement lead times. The schedule the owner sees at GMP reflects the project they are building, not a generic timeline adjusted for square footage.

3
Cost Certainty - The GMP Advantage

The financial structure of CMAR is organized around the Guaranteed Maximum Price. The GMP is the ceiling on what the owner pays for the defined scope of work. If construction costs come in below the GMP, the savings are typically shared between the owner and CM according to a pre-negotiated split. If costs exceed the GMP due to the CM's estimating, trade management, or execution, the CM absorbs the overrun.

For a detailed explanation of how the GMP is developed and structured, see What is CMAR. This section addresses why the GMP structure produces better cost outcomes than alternative pricing mechanisms on complex projects.

GMP versus Lump-Sum Bid

In a lump-sum bid, the contractor provides a single price for the work based on the completed construction documents. The contractor's costs, markups, and contingency assumptions are internal - the owner sees a number but not how it was built. If the contractor's actual costs come in below the bid, the contractor keeps the difference. If the contractor discovers scope gaps or ambiguities in the documents, those become change orders - negotiations between owner and contractor over who pays for work that falls between the lines of the drawings.

On complex projects where the documents inevitably contain gaps, the lump-sum structure creates an adversarial dynamic around change orders. The contractor has a financial incentive to identify scope gaps and price them as extras. The owner has a financial incentive to argue that the work was included in the bid. The architect is caught in the middle, interpreting their own documents in a dispute between the two parties paying them.

The GMP structure changes this dynamic. The CM's costs are open-book - every trade bid, every general conditions line item, every contingency assumption is visible to the owner and architect. Scope gaps identified during construction are addressed through the construction contingency, which is documented, tracked, and reviewed jointly. The incentive alignment shifts from adversarial negotiation over individual change orders to collaborative management of a shared budget.

GMP versus Cost-Plus with No Cap

Cost-plus contracts, in which the owner pays the CM's actual costs plus a fee, eliminate the adversarial change order dynamic but introduce a different problem: there is no ceiling on the owner's exposure. If the project costs more than expected, the owner pays more. The CM's fee is typically a percentage of cost, which means the CM earns more when the project costs more - an incentive structure that runs directly counter to the owner's interest in cost control.

In CMAR with a GMP, the cost-plus mechanism operates within a defined ceiling. The CM is compensated on actual costs, and their fee is fixed and separately stated. But the GMP creates a cap on total owner exposure. If the CM's trade buyout comes in higher than estimated, or if the CM mismanages contingency, the CM absorbs the difference. The cost-plus transparency remains, but the owner's downside is limited.

GMP without Pre-Construction versus GMP with Pre-Construction

Some contractors offer a GMP without a meaningful pre-construction process - they review the documents at a point in time, apply their estimating database, add contingency, and commit to a number. This GMP is structurally different from a CMAR GMP developed through months of pre-construction collaboration.

A GMP established after thorough pre-construction - constructability review, trade pre-qualification, regulatory analysis, site-specific scheduling - is built on verified information. The contingency reflects identified risks that have been quantified. The trade cost estimates reflect actual market conditions validated through preliminary pricing conversations with subcontractors. The scope inclusions and exclusions are detailed and reviewed by the owner and architect.

A GMP established without pre-construction is an estimate with a contract around it. The contingency is a percentage applied to cover unknowns that have not been investigated. The trade pricing reflects the estimator's database, not the current market for the specific project. The distance between that GMP and actual construction costs is wider, which means the contingency must be larger to protect the CM - and a larger contingency means either a higher GMP or less margin for the CM, neither of which serves the owner.

The pre-construction investment is a fraction of total project cost - typically 1-3% of the construction budget. Its value is measured by the construction-phase problems it identifies early, when the cost to address them is lowest. Detailed pre-construction methodology is covered on the Budget and Cost Control page.

Contingency Structure

In CMAR, contingency is divided into two distinct categories with different ownership and approval requirements.

Construction Contingency is controlled by the CM and covers scope gaps, missed items, estimating variances, and unforeseen conditions within the defined scope of work. Drawing on the construction contingency requires documentation of the condition and notification to the owner, but does not require owner approval for individual draws below a threshold amount. This contingency is the CM's risk buffer - it represents the unknowns that exist within even thoroughly documented construction drawings.

Owner Contingency is controlled by the owner and covers owner-directed changes, upgrades, and scope additions that were not part of the GMP scope. Drawing on the owner contingency requires owner approval. The owner decides what to add, change, or upgrade, and funds those decisions from a pot they control.

This separation is the mechanism through which CMAR's financial alignment becomes concrete. The CM manages construction risk within the construction contingency. The owner manages their own decisions within the owner contingency. Unspent construction contingency is typically shared back to the owner at project close. The incentives align: the CM benefits from accurate estimating and efficient execution because unspent contingency flows back to the project; the owner benefits from cost discipline because the GMP caps their exposure.

4
How CMAR Compares to Advisory Construction Management

One of the most common alternatives for complex residential projects is engaging an advisory construction manager or owner's representative alongside a general contractor. In that structure, the advisory CM provides oversight, budget review, schedule monitoring, and owner advocacy, while a separate general contractor holds the construction contract with the owner. The advisory CM does not hold the construction contract and does not carry cost risk through a GMP.

The advisory CM model serves a specific and legitimate function. On projects where the owner wants an independent advocate who is not also the builder - someone whose only role is to represent the owner's interests in budget, schedule, and quality decisions - an advisory CM provides that independence. The advisory CM reviews the GC's pricing, monitors their schedule performance, inspects quality on the owner's behalf, and reports to the owner with no conflict of interest.

In CMAR, the advisory and construction execution functions exist under one contract. The CM provides cost intelligence during design, commits to a GMP, and executes the work. The owner engages one entity rather than two, and the CM's cost guidance is backed by the same firm's competitive trade pricing.

The distinction matters on complex projects where the coordination between pre-construction intelligence and construction execution is the primary challenge. When the CM who provided the constructability analysis during design is the same CM executing the work, the continuity of knowledge is preserved. The trade relationships developed during pre-construction pricing carry into construction. The site logistics evaluated during design development inform the construction plan. There is no handoff between the firm that planned the project and the firm that builds it.

Both models have legitimate applications. On projects where the owner's primary concern is personal advocacy separate from the builder, or where the project scope is straightforward enough that the value of consolidation is less significant, advisory CM works well. On complex projects where the gap between design intelligence and construction execution is the central risk, CMAR consolidates those functions under one contract and one accountability structure.

For a detailed comparison of the two approaches, see the CM at Risk vs. Advisor page.

5
How CMAR Supports the Architect's Role

The architect is the independent check and balance in the CMAR structure. The architect holds a separate contract with the owner, provides independent design oversight, reviews construction quality against the design intent, and carries professional liability for the adequacy of the design. This independence is preserved in CMAR because the architect and CM are peers reporting to the same owner - not one working under the other.

This is a structural advantage of CMAR over design-build. In design-build, the architect works for the contractor, and the owner loses the independent design advocacy that a separately contracted architect provides. In CMAR, the architect's independence is maintained while the benefits of early construction involvement are added.

Cost Reality in the Design Process

One of the most common frustrations in residential construction is the budget surprise at bid. The architect designs a project the owner loves, the drawings go to bid, and the numbers come back 30-40% over budget. The owner is disappointed. The architect is embarrassed. The project either gets value-engineered into something the owner did not intend, or the budget gets increased beyond what the owner planned, or the project stalls.

With early CM involvement, cost reality is integrated into the design process from the start. The architect gets real-time feedback on what things cost as design decisions are made. Trade-offs happen collaboratively: the board-form concrete is significantly more per square foot than a smooth trowel finish - the architect and owner can decide together where that investment has the most impact on the design. The steel moment frame costs more than a wood shear wall system, but it opens up the floor plan in ways that support the design intent - so the team evaluates whether the additional cost is justified by the architectural benefit.

The design that gets permitted and built is the design the architect intended, because the budget was validated as it developed rather than tested after it was complete.

Constructability Review as Design Support

The CM catches constructability issues during design development before they become RFIs during construction. When the CM reviews the structural drawings and identifies that the specified concrete pour sequence does not account for the pump reach limitations on the site, the structural engineer can adjust pour joint locations in the drawings. When the CM identifies that the curtain wall system the architect specified requires a crane setup that conflicts with the LAFD access road, the team can resolve the conflict during DD rather than during framing.

Constructability review during design development means the drawings the trades build from have already been evaluated for field conditions, equipment access, and trade coordination. The result is fewer RFIs, fewer change orders, and fewer field conditions that force the design to be modified after it has been permitted.

The Architect's Perspective

From the architect's perspective, early CM involvement means the design survives construction. The budget supports the vision because cost intelligence was part of the design conversation from the beginning. The drawings are more buildable because they have been reviewed for constructability before they go to plan check. The construction process respects the design intent because the builder who evaluated the drawings during design is the same builder executing the work.

For architects working on their first complex hillside project in Los Angeles, the CM's knowledge of site-specific construction conditions - drill rig access, haul route restrictions, BHO grading compliance, LAFD fire access requirements - is particularly valuable. These are not conditions the architect is expected to know from experience. They are construction and regulatory conditions that the CM brings to the design table.

For a detailed breakdown of how architect and CM responsibilities divide across project phases in CMAR, see the Architect's Role page.

6
Schedule Advantages

CMAR offers schedule advantages that are structural to the delivery method, not dependent on any particular contractor's efficiency. They result from the overlapping of pre-construction and design activities that in traditional delivery happen sequentially.

Fast-Track Capability

In traditional delivery, construction cannot begin until design is complete, bids are received, a contractor is selected, and a contract is executed. In CMAR, early work packages can proceed before the full GMP is established. Site clearing, shoring, foundation work, and long-lead procurement can begin under early release packages while the architect continues developing the balance of the construction documents.

On complex hillside projects, the site work alone - clearing, grading, shoring, foundation - can represent six months or more of construction activity. Beginning that work while the interior design and finish selections are still being finalized compresses the overall project timeline without rushing design decisions.

Parallel Processing

During pre-construction, the CM is conducting multiple workstreams in parallel with the architect's design effort. Trade pre-qualification identifies the subcontractor pool for each major scope before bidding begins. Early permit applications - grading permits, shoring permits, demolition permits - are filed while design development continues on the building permit. Long-lead materials - structural steel, custom window systems, imported stone - are identified and procurement initiated months before the relevant scope of work begins on site.

In traditional delivery, none of this work happens until the design is complete and the contractor is on board. Every week of pre-construction parallel processing is a week recovered from the overall project timeline.

Informed Scheduling

A construction schedule built during pre-construction reflects the actual conditions the project will face. The CM builds the schedule around actual hauling windows - specific days and hours when earthwork trucks can access the site under the approved haul route. The schedule accounts for actual permit processing timelines based on current LADBS and DBS review loads. Long-lead procurement is sequenced against actual vendor lead times confirmed through pre-construction outreach.

The result is a schedule the owner can rely on for planning purposes - financing, move-in dates, lease expirations, school year transitions - because it was built from verified information rather than standard duration assumptions.

7
Risk Allocation - Who Carries What

Every construction project involves risk - the question is how that risk is allocated among the parties. Different delivery methods allocate risk differently, and understanding the allocation is essential to choosing the right method for a given project.

Cost Risk

In CMAR, the CM carries cost overrun risk above the GMP for the defined scope of work. If trade buyout exceeds the CM's estimates, the CM absorbs the difference. If productivity is lower than planned, the CM manages within the budget. This is the "at risk" in Construction Manager at Risk.

In cost-plus delivery, the owner carries all cost risk. There is no ceiling. If the project costs more, the owner pays more.

In lump-sum delivery, the contractor carries cost risk for the defined scope, but shifts risk back to the owner through change orders when the documents are ambiguous or incomplete - which on complex residential projects, they inevitably are.

Design Risk

The architect carries professional liability for the adequacy of the design in CMAR, just as in any delivery method where the architect holds a separate contract with the owner. CMAR does not change the architect's standard of care or professional responsibility. What it does is reduce the likelihood that design issues create construction-phase problems, because the CM's constructability review identifies many of those issues during design, when they are least expensive to resolve.

Schedule Risk

Schedule risk in CMAR is shared between owner and CM based on what each party controls. The CM is responsible for construction execution within the schedule - trade coordination, sequencing, productivity management. The owner is responsible for timely decisions on selections, change orders, and scope modifications. Weather, concealed conditions, and force majeure events are typically shared risks governed by the contract terms.

Site Condition Risk

On complex sites, unknown conditions below grade represent a significant risk category. In traditional delivery, this risk typically falls on the owner through change orders - the contractor bids what the documents show, and anything different is an extra.

In CMAR, the pre-construction process is specifically designed to investigate and quantify site condition risk before the GMP is set. Additional borings, test pits, utility locates, hazardous materials surveys - these investigations happen during pre-construction so the GMP reflects the actual conditions rather than assumptions. Risks that can be quantified are included in the GMP. Risks that cannot be fully quantified are addressed through contingency allocations that are transparent to the owner.

8
Transparency and Trust

Open-book accounting is a defining characteristic of CMAR, and it changes the project dynamic in ways that go beyond financial reporting.

In CMAR, every trade bid is shared with the owner and architect. The CM's fee is visible and separately stated. General conditions - the CM's on-site staff, equipment, facilities, insurance, and project management costs - are itemized. Contingency is tracked, and draws are documented with the condition that triggered them. The owner and architect can see where every dollar goes.

This transparency is not just a financial reporting mechanism. It is the foundation of the three-party check-and-balance structure that makes CMAR work on complex projects. The architect evaluates quality and design compliance. The CM manages cost and schedule. The owner makes decisions with both perspectives visible. When the architect recommends a more expensive finish detail, the owner can see the cost impact in real time and make an informed decision. When the CM identifies a value engineering opportunity, the architect can evaluate whether the substitution maintains design intent. The open book makes these conversations possible because all three parties are working from the same information.

The contrast with lump-sum delivery is significant. In a lump-sum contract, the contractor's internal costs are not visible. The owner cannot evaluate whether a change order price is fair because they cannot see the underlying trade costs. The architect cannot assess whether value engineering proposals maintain design intent because the cost basis is opaque. Disputes arise not from bad faith but from information asymmetry - the contractor knows what things cost, and the owner does not.

Open-book transparency does not eliminate all disagreements. Reasonable people can disagree about scope interpretation, contingency draws, and general conditions allocations. But the disagreements happen with full information on both sides, which means they are resolved through informed discussion rather than positional negotiation.

9
Real Scenarios - How Early CM Involvement Changes Outcomes

The following scenarios illustrate how pre-construction CM involvement changes the trajectory of a project. These are drawn from common conditions on residential construction projects in Los Angeles, framed to show what the CM identifies during design and how the team responds.

Scenario 1: Variable Bedrock Depth on a Hillside Foundation

During pre-construction, the CM reviews the geotechnical report for a hillside new construction project and notes that the boring data on the east side of the site is limited - two borings over a 60-foot span where the foundation system will bear on bedrock. The CM flags this to the team and recommends two additional borings before foundation design is finalized.

The geotechnical engineer performs the additional borings. The results show that bedrock depth varies by over ten feet across that section of the site - significantly more than the interpolated profile assumed. The structural engineer designs the foundation for the actual rock profile rather than the assumed one, specifying longer caissons on the east side to reach competent bearing.

The GMP reflects the actual foundation scope. During construction, the drill rig encounters conditions the team already knew about and planned for. The foundation goes in on schedule.

Without the CM's pre-construction involvement, the drill rig would have discovered the variable bedrock during construction. The structural engineer would have redesigned the affected caissons through an RFI process. The contractor would have submitted a change order for the additional drilling depth and longer rebar cages. The schedule would have absorbed the delay. The cost would have been higher because the response was reactive rather than planned.

Scenario 2: Access Constraint for Concrete Placement

During a pre-construction site walk for a hillside project, the CM evaluates concrete placement logistics and identifies that the boom pump cannot reach the rear retaining wall from any available street position. The wall is 140 feet from the closest pump setup point, and the boom reach is 120 feet.

The CM raises this during design development. The structural engineer adjusts pour joint locations in the wall design to accommodate a line pump setup, which can reach the full wall length from a staging area within the site but requires smaller individual pours. The concrete supplier is scheduled for smaller loads that match the slower placement rate of the line pump. The CM's construction schedule reflects the adjusted pour sequence.

The wall pours execute as planned. The design accommodated the equipment constraint because the constraint was identified during design, not during formwork installation.

Scenario 3: Grading Quantities and BHO Compliance

During design development for a hillside project in a Baseline Hillside Ordinance area, the CM reviews the civil engineer's grading plan against BHO grading limits for the project's specific slope band and street classification. The proposed cut and fill quantities exceed the maximum grading limits allowed for the street classification.

The CM identifies this during the DD coordination review and raises it with the design team. The civil engineer adjusts the grading plan - modifying building pad elevations and retaining wall locations - to bring quantities within the BHO limits. The adjusted plan goes to plan check with grading quantities that comply with the applicable limits.

On complex hillside submittals in Los Angeles, a BHO grading compliance issue discovered at plan check can add months to the permit timeline while the design is revised, resubmitted, and rechecked. Identifying the issue during DD - when the civil engineer can adjust the grading plan as part of the normal design process - avoids the most expensive kind of delay: the kind that happens after the team thought the design was complete.

10
Choosing a Project Delivery Method

CMAR is one of several delivery methods available for residential construction projects. Choosing the right delivery method depends on the project's complexity, the owner's priorities, and the conditions specific to the site and scope. There is no universally superior method - each is suited to different project types.

The primary delivery methods used in residential construction are design-bid-build (the traditional sequential approach), design-build (where one entity provides both design and construction), and CMAR (where the CM provides pre-construction services during design and then executes the construction under a GMP). Advisory construction management, in which an independent CM advises the owner while a separate GC builds, is also common on high-value projects.

The factors that typically guide the selection of a delivery method include the complexity of the site and scope, the owner's tolerance for cost uncertainty, the importance of schedule compression, the degree to which the owner wants independent design advocacy (separate architect), and the owner's comfort level with construction management.

On projects where the site is straightforward, the scope is well-defined, and competitive pricing is the owner's primary objective, design-bid-build produces competitive results. The owner benefits from multiple GCs bidding against a complete set of documents.

On projects where speed is the dominant concern and the owner is comfortable consolidating design and construction accountability under one entity, design-build can compress the timeline by eliminating the gap between design completion and construction start. The trade-off is the loss of independent architectural advocacy - the architect works for the design-builder, not the owner.

On projects where complexity is the dominant factor - hillside sites, fire rebuilds in geotechnically challenging areas, major structural renovations, projects with significant regulatory constraints - CMAR addresses the specific risks that complexity creates. Pre-construction investigation reduces unknowns. Constructability review reduces field conflicts. Real-time cost validation reduces budget surprises. The GMP caps the owner's cost exposure. And the architect maintains independence through a separate contract with the owner.

The delivery method comparison is covered in detail on the Delivery Methods Compared page.

11
Who Benefits Most from CMAR
Project Types

Hillside new construction. Site complexity, geotechnical uncertainty, equipment access constraints, BHO grading limits, LAFD fire access requirements, multi-agency permitting sequences, and long construction timelines all create conditions where early CM involvement changes outcomes. The foundation alone on a complex hillside site can involve half a dozen coordination interfaces between structural, geotechnical, civil, and shoring disciplines.

Fire rebuilds in PGRAZ zones. Post-fire sites introduce geotechnical unknowns - fire-damaged soils, loss of root structure on slopes, potential debris flow exposure - on accelerated timelines. Owners rebuilding after a fire face simultaneous pressure to move quickly and to build on sites that may have changed materially from the conditions documented in pre-fire reports. Early CM involvement helps sequence the investigation, design, and construction to move as quickly as conditions allow without skipping steps that protect the owner.

Major renovations with structural implications. Existing conditions in a renovation are unknown until the building is opened up. Concealed framing conditions, undocumented prior modifications, water damage extent, foundation adequacy - these are discovered during construction in traditional delivery. In CMAR, the pre-construction process includes selective demolition, investigative openings, and testing to characterize existing conditions before the GMP is set. The renovation scope is based on what the team actually found, not what the exterior suggested.

Complex remediation and structural repair. Failing retaining walls, foundation settlement, water intrusion damage, and structural deficiencies require coordination between the structural engineer, geotechnical engineer, and contractor to develop a repair approach that addresses the root cause, not just the symptoms. The CM's involvement during the repair design ensures the approach is constructable, the access logistics are resolved, and the scope is fully defined before the GMP commits the budget.

Projects over $3M where pre-construction investment is proportionally small relative to risk. On a $5M hillside project, a pre-construction fee of $50,000-$100,000 represents 1-2% of the construction budget. The value of that investment is measured against the potential cost of the conditions it identifies: a foundation redesign that could cost $200,000, a grading compliance issue that could delay the permit by four months, or a constructability problem that could require $150,000 in field modifications.

Owner Profiles

Owners who value transparency and want to understand where their construction dollars go are well-served by the open-book structure. Owners who want active participation in trade selection, value engineering decisions, and scope management find that CMAR provides the visibility to engage meaningfully. Owners building their first complex project benefit from the CM's guidance through decisions they have not made before.

Architects

Architects working on complex residential projects - particularly those working on their first hillside project in Los Angeles, or architects whose practices are primarily focused on design quality rather than construction administration - benefit from the CM's constructability and cost feedback during design. The CM does not replace the architect's judgment; the CM provides construction information that makes the architect's judgment more informed.

When CMAR Is Not Necessary

CMAR is not the right delivery method for every project. On straightforward flat-lot remodels, kitchen and bath renovations, and projects under $1M where the scope is clear and the site conditions are predictable, the pre-construction investment is disproportionate to the risk. Competitive bidding among qualified general contractors on a well-documented set of plans produces a fair price and clear accountability.

Owners who have a trusted general contractor with a track record on projects of similar complexity - and who are comfortable with lump-sum or negotiated cost-plus delivery - may not need the structure of CMAR. The delivery method adds value in proportion to the project's complexity and the owner's need for cost certainty and transparency.

12
Frequently Asked Questions
Why should I use CMAR instead of a regular general contractor?

The difference is not in who builds the project - in both cases, a contractor manages subcontractors and executes the construction work. The difference is in when the contractor gets involved, how costs are structured, and what financial accountability the contractor carries. In CMAR, the CM joins the project during design, contributes constructability and cost analysis as the drawings develop, commits to a GMP that caps the owner's cost exposure, and executes the work under open-book accounting. A general contractor in traditional delivery arrives after design is complete, provides a lump-sum bid based on the finished documents, and builds the project. On complex projects where the design-to-construction gap is the primary risk, the timing of the CM's involvement is the structural difference. For more detail, see What is CMAR.

Is CMAR worth the extra pre-construction cost?

The pre-construction fee in CMAR typically represents 1-3% of total construction cost. Its value is measured against the construction-phase problems it identifies while the cost to address them is lowest. A foundation system redesigned during DD costs the team a few weeks of coordination. The same redesign discovered during construction costs the project a change order, a schedule delay, and a mobilization for alternative equipment. On projects with significant site complexity, regulatory constraints, or geotechnical uncertainty, the pre-construction investment routinely identifies issues whose construction-phase cost would exceed the fee many times over. On straightforward projects with predictable conditions, the pre-construction investment may not be justified.

How much does pre-construction cost in CMAR?

Pre-construction fees vary by project complexity, scope of the CM's involvement, and duration of the design phase. On residential projects in Los Angeles, pre-construction fees typically range from $30,000 to $150,000 depending on the project's size and complexity. This covers the CM's estimating, scheduling, constructability review, value engineering, trade pre-qualification, and design-phase coordination. The fee is a separately stated cost, not embedded in the construction pricing. See the Budget and Cost Control page for a detailed breakdown of how pre-construction services are scoped and priced.

What happens if the GMP comes in over my budget?

If the CM's GMP proposal exceeds the owner's budget, the team has options because the GMP is developed collaboratively, not presented as a take-it-or-leave-it number. The CM and architect can identify scope adjustments, material substitutions, or phasing strategies that bring the cost within budget. Because the GMP was developed against the owner's budget target throughout pre-construction, significant budget surprises at GMP are less common in CMAR than bid-day surprises in traditional delivery. The budget has been validated at multiple milestones during design. If the GMP still exceeds the budget after value engineering, the owner can adjust the scope, increase the budget, or - in rare cases - part ways with the CM. The pre-construction contract is separate from the construction contract, giving the owner an off-ramp before committing to construction.

Can I use CMAR on a smaller project?

CMAR can be applied to projects of any size, but the economics work best on projects where the pre-construction fee is proportionally small relative to the risk it mitigates. On projects above $3M with significant complexity - hillside sites, structural renovations, fire rebuilds - the pre-construction investment is typically 1-3% of construction cost and addresses risks that could otherwise cost multiples of that amount. On projects under $1M with straightforward conditions, the pre-construction fee represents a larger percentage of total cost and the risk it mitigates is proportionally smaller. The delivery method should match the project's complexity.

How does CMAR help with my fire rebuild?

Fire rebuilds combine geotechnical uncertainty, accelerated timelines, and emotional urgency in ways that benefit from structured early involvement. The CM evaluates post-fire site conditions, coordinates geotechnical investigation to assess slope stability and soil integrity, reviews the design against current code requirements (which may have changed since the original home was built), and develops a realistic schedule that accounts for the permit, design, and construction realities of the PGRAZ zone. The pre-construction process ensures the rebuild budget reflects actual conditions rather than assumptions, and the GMP caps the owner's cost exposure during a period when financial uncertainty compounds the emotional toll of the loss.

Do I still need an owner's representative if I use CMAR?

In CMAR, the CM provides many of the functions an owner's representative would provide: budget oversight, schedule management, trade coordination, and construction quality monitoring. The key difference is that the CM also holds the construction contract and carries cost risk through the GMP. Some owners on very large or complex projects choose to engage an independent owner's representative in addition to the CMAR to provide a layer of independent oversight. On most residential CMAR projects, the combination of the CM (managing cost and construction) and the architect (providing independent design oversight and quality review) provides sufficient checks and balances without a third party. See the CM at Risk vs. Advisor page for a detailed comparison.

How does CMAR prevent cost overruns?

CMAR prevents cost overruns through two mechanisms. First, the pre-construction process identifies and quantifies costs before the GMP is set, reducing the gap between estimated and actual construction costs. The CM validates the budget against real trade pricing at multiple design milestones, catches scope gaps and coordination conflicts during design review, and investigates site conditions that could generate construction-phase extras. Second, the GMP structure caps the owner's exposure for the defined scope. Cost overruns caused by the CM's estimating errors, trade management, or execution are absorbed by the CM. Owner-directed changes are handled separately through the owner contingency. The combination of pre-construction investigation and GMP risk transfer is what makes CMAR effective on complex projects where unknowns are the primary budget risk.

What's the difference between CMAR and design-build?

In design-build, one entity provides both the design and the construction. The owner contracts with a single design-builder who manages the architect (or employs them directly) and the construction. In CMAR, the owner holds separate contracts with the architect and the CM. The architect works for the owner, not the builder. This preserves the architect's independence as a design advocate and quality oversight role. CMAR also involves a GMP, which provides cost certainty that design-build does not inherently include (though some design-build contracts include a GMP). The primary trade-off is speed: design-build can be faster because one entity controls both design and construction. CMAR preserves the independent architect relationship while providing the benefits of early builder involvement. For a detailed comparison, see the Delivery Methods Compared page.

How does CMAR benefit my architect?

The architect benefits from CMAR in several ways. Cost reality is integrated into the design from the start, so the architect's design survives the budget process rather than being value-engineered after bid. Constructability review during design development reduces the RFIs and change orders during construction that erode design intent. The CM catches coordination issues between disciplines before they become field problems. And the architect's independent role is preserved - unlike design-build, where the architect works for the contractor, CMAR maintains the architect's separate contract with the owner and their role as independent design advocate. See the Architect's Role page for a detailed breakdown.

When is CMAR overkill?

CMAR adds a structured pre-construction process to the project timeline and budget. On projects where the scope is clear, the site is predictable, and the risk profile is low, that structure is not necessary. A well-qualified general contractor bidding on a complete set of documents for a flat-lot renovation, a straightforward addition, or a cosmetic remodel will provide competitive pricing without the pre-construction overlay. CMAR is designed for projects where the unknowns are significant enough that investigating them before committing to a construction budget changes the outcome. If the project does not have those unknowns, the delivery method adds cost and time without proportional benefit.

How do I evaluate a CMAR firm?

The CM's value in CMAR is concentrated in the pre-construction phase - their ability to evaluate constructability, model costs accurately, identify regulatory risks, and coordinate with the design team. When evaluating a CMAR firm, the relevant questions include: Has the firm managed pre-construction on projects of similar complexity? Do they have direct experience with the specific conditions on your site (hillside construction, fire rebuilds, structural remediation)? Can they demonstrate a track record of GMP accuracy - projects where the final cost was close to the GMP? Do they have established relationships with the trade subcontractors who will bid the work? Is their estimating done in-house by people who also manage construction, or is it a separate function disconnected from field operations? The pre-construction is the product. A firm's ability to deliver it is what matters.

If you have a complex residential project where early construction involvement could change the outcome, or if you want to understand whether CMAR is the right delivery method for your situation, we can help.