Construction Manager at risk

practice management
1

Hi all,

For CMAR, which one is correct?

A. To price the project, use fixed price or GMP method

B. During design phase, CMAR start estimating the cost and assembling the trades.

Thanks,

Haifeng

2

Hi Haifeng,

Have you checked out our ARE Live on Practice Management; it might help with some of the concepts you’re curious about.

Meanwhile could you give @cat.heard9 some background as to which answer you’re leaning towards?

3

B :heart: :heart: :heart:

1 Like
4

Sure thing. Without having any background aside from your question, I would say the answer is B, during the design phase, CMAR starts estimating the cost and assembling trades. I lean this way for a couple reasons;

  • bringing a construction manager onto a project helps provide construction expertise earlier in the project. The CM typically is familiar with the design/construction process and can help guide the team through challenges by foreseeing potential conflicts and giving construction advice
  • typically the contractor, not the CM, would provide a fixed cost or guaranteed maximum price

Let me know if you have any follow up questions or if I can provide further clarity.

1 Like
5

Hi there,

I really appreciate your reply.

I totally agree your first reason. For your second one, I think for CMAR, CM is the contractor, so CM will be the person to provide GMP.

The reason I am not a big fan of answer A is because based on the Ballast ARE Review Manual, there are only two ways to price the project under CMAR method----on cost of the work plus fee, either with or without GMP. There is no stipulated sum option.

Best,

Haifeng

1 Like
6

Am I right on my previous comment? @cat.heard9 Best, HL

1 Like
7

I would add another way of finding out the answer:
“A” can be eliminated as Construction Manager is used NOT ONLY to price the project once , but advise and update costs at end of all phases and than may take on the construction with GMP. My question: GMP is “fixed” price… so is this another clue that B is correct?.

1 Like
8

Hi @cat.heard9 do you mind following up with @aj1