Construction Management at risk

Construction Manager (CM) at Risk is a type of project delivery method where the CM is also the Constructor. The CM will have a direct contractual relationship with the Owner, and in the case of Tacmin, the Owner has the option to incorporate Tacmin’s Design Expertise to provide engineering services for the project.

In preparing its bid price, a CM at Risk invites subcontractors and suppliers to assist, and solicits bids. This allows the CM at Risk to confirm its own independent estimate of the cost of the work and to shift some of the performance risk to the subcontractors.

During the construction phase, the CM will either self-perform the work, sub-contract the work to various specialty firms or will do a combination of both. The Contract will require the CM to contract directly with such subcontractors as may be necessary for construction or supply of various elements of the project.

During the procurement phase, the CM at Risk will develop lists of possible bidders and pre-qualifying bidders. The CM at Risk will conduct bid openings and evaluate the bids to determine the lowest responsive and responsible bidder. The CM at Risk will make recommendations to the Owner concerning the acceptance or rejection of bids and at the direction of the Owner, will prepare, execute, and deliver the contract documents between the CM and the contractors. The CM at Risk will also issue the notices to proceed.

The CM at Risk will prepare an estimate of costs for all addenda and submit the estimates to the Owner for approval. After approval by the Owner, the addenda will be transmitted to bidders; the GMP and the CM’s compensation will be adjusted as provided for in the agreement. Upon receipt of bids, the CM At Risk will evaluate the bids, including alternate prices and unit prices.

During the construction phase, the CM At Risk will review the contents of a request for change to the construction contract time or price submitted by a Contractor, assemble information concerning the request and attempt to determine the cause of the requests. If the CM’s analysis reveals that the request is valid, the CM at Risk must prepare a detailed report for the Owner’s approval.

The CM At Risk must prepare the necessary change order documents for signing by the Contractor and Owner. All proposed Owner initiated change orders will first be described by the Owner to the CM and then forwarded in a request for proposal to the Contractor, with technical drawings and specifications prepared by the Design Professional. In response to the request for a proposal, the Contractor must submit to the CM, information concerning any costs and time adjustments necessary to perform the proposed change order work.

The CM at Risk will review the Contractor’s proposal, discuss the proposed change order with the Contractor and attempt to determine the Contractor’s basis for the cost and time to perform the work and any effect on the Contract Value. The CM at Risk will present its findings to the Owner and, following Owner acceptance, prepare the change order documents for signature by the CM and the Owner. Upon execution of the change order documents, the CM at Risk will prepare change order documents for signature by the Contractor.

Construction Management / Design-Build (2005). Lorman Seminar