Oversite believes that the foundation of a successful project begins by partnering with a construction manager at risk (CMAR), especially given the current unpredictable climate. CMAR is a project delivery method in which the owner’s representative serves as the agent of the property owner, tasked with completing the project within a guaranteed maximum price. CMAR stands as an alternative to the widely used project delivery approaches such as design-bid-build. To ensure the success of your CMAR project, it's essential to begin with a proficient owner’s representative, such as Oversite. We consistently advocate for the use of CMAR and have witnessed its reliability in virtually every project. Beyond offering effective communication skills, a CMAR can assist owners in minimizing their management responsibilities and financial exposure.
With a CMAR, the owner’s representative serves as an advocate for the owner throughout both the design and construction phases, ensuring that costs are kept below the guaranteed maximum price. The term “at risk” stems from the financial responsibility the owner’s representative bears – if the project surpasses the specified limit, the construction manager becomes liable for any additional costs.
To grasp the functioning of a CMAR, it's beneficial to contrast it with a conventional design-bid-build project. In the latter, a property owner initiates a contract with a design firm tasked with creating construction drawings and documents detailing the project's design and scope. Following the completion of the design phase, the owner solicits bids from general contractors. Once construction commences, any required changes may incur costs, typically falling on the property owner's responsibility.
This is where the advantages of utilizing a CMAR become evident. In this approach, a property owner initiates collaboration with an owner’s representative right from the project's inception. The owner’s representative, who can be an individual, a general contractor, or a management firm like Oversite, plays a crucial role during the design phase. They provide valuable input to ensure that the building's design aligns harmoniously with various factors, including budget and schedule considerations. Additionally, the owner’s representative initiates the solicitation of bids from subcontractors during the design phase, ultimately leading to the establishment of a guaranteed maximum price for the entire project.
This approach offers advantages to all stakeholders. Designers and contractors can engage in collaborative efforts from an early stage, ensuring the practicality of construction drawings. Property owners, in turn, secure a guaranteed project price, mitigating potential risks during the construction phase. Owner’s representatives contribute valuable input and initiate bid solicitations earlier in the project timeline, potentially enhancing both the schedule and budget. With CMAR, the owner forges a relationship with a construction manager who serves as a consultant and expert, and the owner’s representative is financially motivated to act in the owner's best interest.
The CMAR method is frequently employed when a property owner lacks extensive experience with construction projects or is facing resource constraints. With a seasoned and trustworthy owner’s representative at the helm, the CMAR approach has the potential to yield favorable outcomes. These benefits extend beyond the property owner to encompass positive impacts on the architect and contractors involved in the project.
Construction begins on an Oversite project.
The advantages of employing a CMAR include precise job cost estimation, enhanced communication efficiency, and expedited payment processes. The property owner's financial liability is constrained by the guaranteed maximum price, effectively transferring financial risks to the construction manager. Additionally, the property owner experiences a reduction in management burdens and improved communication among all stakeholders in a complex construction project. Efficient communication is crucial to avoiding prolonged payment delays, and the CMAR model, by serving as a singular point of contact with heightened visibility for everyone involved, accelerates the payment process.
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