Key Biscayne Master Plan 043944000.18w_Key_Biscayne_MP(forJooMag) | Page 71

7.0 PROJECT DELIVERY METHODS
7.2.2 Construction Management at Risk
(CMAR) design costs since plans developed for a DBB procurement generally need
to be more detailed than those used for a CMAR procurement process.
Construction Management at Risk (CMAR) is similar to DBB because the
CMAR fulfills the role of general contractor during the construction phase.
The “risk” in CMAR is the Construction Manager holds the trade contracts
and takes on the risk of performing the construction while guaranteeing
the completion of the project for a negotiated price. This price is usually
determined when the design is between 50% and 90% complete. The
CMAR is usually hired by the owner prior to the project design being
completed. Typically, the CMAR performs most of the work through
subcontractors procured through a competitive bidding process very
similar to DBB. However, the CMAR’s fees are negotiated separately by
the Village and those fees are a comparatively small portion of the overall
construction cost. The central idea of CMAR is to gain the advantage of
price competition in the subcontractor work packages combined with the
qualifications-based selection of the General Contractor as the CMAR. The following is a summary of the advantages and disadvantages of the
CMAR project delivery method:
This delivery method is different from DBB in that the CMAR offers
schedule, budget, and constructability advice during the project planning
and design phases, as well as advisory professional management
assistance to the Village prior to construction. With CMAR project
delivery, the construction manager and contractor are a hybrid of the
traditional DBB roles. Another way to look at this is the CMAR manages
the construction of the project. This can be very beneficial for owners who
have minimal in-house staff to manage the project and for projects with
scopes of work covering multiple disciplines.
Having pre-construction Construction Manager advisory services can
identify advantageous changes to reduce project costs and/or allow
construction of certain portions of the project to begin before the design is
finalized. For example, the CMAR can bid out portions of the project with
approved designs at any time, without having to wait for the entire design
to be completed. The CMAR and owner can come to an agreement on a
guaranteed maximum price (GMP) based on a partially completed design,
which takes into account the cost to complete. Coming to an agreement
early in the project on preferred materials, equipment, and project features
can also be helpful in allowing the use of performance specifications or
reduced specifications rather than standard specifications. This can reduce
Advantages:
 This project delivery method can arguably require the least number
of owner employees because the CMAR can expand to meet the
Village’s staffing needs. The CMAR takes much of the burden
of construction management off the Village staff and provides
professional advisory management assistance during design. The
CMAR may eliminate the need for the Village to hire additional staff
to support the project.
 Portions of the construction can be “fast-tracked” prior to fully
completing the design.
 The Village maintains a greater degree of control over the
construction budget since it’s discussed throughout the project
design. During construction, the Village would maintain the
authority over whether monies from the construction contingency
fund are expended.
 CMAR project delivery gives the Village the opportunity to
incorporate a contractor’s perspective and input into the planning
and design phases of the project. Because the CMAR is involved
in the design process, it is more difficult for them to make a claim
related to the clarity of the plans or not fully understanding the
scope of work. This is why CMAR generally results in lower cost
growth (fewer change orders) than other methods.
 The CMAR participates in value engineering and constructability
reviews, which can lower costs and achieve schedule efficiency.
 Companies that offer CMAR project delivery are generally
concerned about their reputation since most CMAR’s are selected
on a qualifications basis. They are significantly motivated to perform
well to uphold their reputation.
 The CMAR is far less likely to develop an adversarial relationship
with the Village during the course of the project. This results in a
construction team motivated to perform well for the Village, resolve
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