Construction management (CM) is a professional service that applies effective management techniques to the planning, design and construction of a project from inception to completion for the purpose of controlling time, cost and quality. A CM is hired to perform preconstruction services, construction management, and management of owner move-in activities. A CM’s fee is simply a percentage of the total construction cost just like traditional general contractor’s fee. An owner does not pay more because he hires a CM Firm but has been proven over time to be a savings to the owner. The CM - At Risk method of project delivery is increasingly being utilized by private and public sector clients, since it blends assessment of pricing, scheduling and qualifications while limiting the owner’s risk.
CM At-Risk is a delivery method that entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as a consultant to the owner in the development and design phases, but as the equivalent of a general contractor during the construction phase. When a construction manager is bound to a GMP, the construction manager not only acts in the owner’s interest, but also protects him/herself.