Construction Manager At-Risk
Contractor Entity:
Construction Manager At-Risk (CM@R, CM/GC)
Contract Basis:
Cost Plus with Guaranteed Maximum Price-- Agreement to perform work and be reimbursed on the basis of actual Cost of work Plus a percentage fee, with the contractor guaranteeing that an agreed Maximum Price will not be exceeded. When the total of the final cost and the contractor's fee are less than the guaranteed price, the savings are shared between the contractor and owner. In private work, in lieu of a GMP, a lump sum contract amount (where the Owner does not participate in any potential savings) or a cost plus contract arrangement is also used.
Selection Criteria:
Qualifications Based & Best Value-- The contractor’s final selection is based on some weighting of a combination of qualifications and fees (possibly including general conditions). This method starts as a cost plus contract and is converted to a maximum price contract when plans are sufficient to define the scope of the work.
