CMAR construction is a project delivery method in which the owner hires a construction manager early in the design phase, and that same entity later assumes the role of general contractor under a Guaranteed Maximum Price. The structure gives owners cost intelligence during design, open-book financial transparency, and a contractual price ceiling with the CM bearing overrun risk.
WakeCo provides construction management and general contracting services across Southern California, including CMAR delivery for commercial, industrial, and public works projects. Contact us to discuss your project and whether CMAR delivery fits your scope and budget requirements.
Two Phases, One Contract
CMAR delivery runs through two distinct phases under a single contract. The governing document is the AIA A133, which divides the CM’s services into a preconstruction phase and a construction phase. During preconstruction, the CM provides cost estimating, constructability review, schedule analysis, and trade strategy.
As design progresses, the CM develops cost models at defined milestones, typically at 30%, 60%, and 90% completion. These give the owner real-time visibility into how the project tracks against budget before commitments are made.
When design reaches sufficient completeness, the CM submits a Guaranteed Maximum Price proposal through a formal amendment to the A133. That amendment identifies the GMP amount, basis documents, construction schedule, the CM’s fee, and contingency allowances. Once the owner accepts the GMP, the CM transitions from advisory capacity to contractual financial commitment and functions as the general contractor for the remainder of the project.
The GMP: What It Covers and What It Doesn’t
The GMP is a contractual price ceiling covering trade costs, general conditions, the CM’s fee, and contingency. Contingency in a CMAR contract is a discrete line item with documented draws, not a figure embedded in a lump sum. The owner can review the cost of every trade package and track spending in real time.
If the final cost exceeds the GMP, the CM absorbs the difference. If the project comes in under, the contract can be structured to split those savings between owner and CM at a pre-agreed percentage.
What the GMP does not cover are owner-directed scope changes or differing site conditions not reasonably inferable from the contract documents. Those are addressed through formal change orders that adjust the GMP upward. The GMP is only as reliable as the assumptions and exclusions that define its boundaries.
CMAR vs. Design-Build vs. Design-Bid-Build
In design-bid-build, the owner holds separate contracts with the designer and contractor. The contractor enters after design is complete, selected on the lowest responsive bid, with no input on constructability during design.
CMAR brings the CM in during design so owner input and cost feedback happen before decisions are locked in. The owner retains the architect relationship and design control, which design-build does not always preserve. The tradeoff is that CMAR does not compress the schedule as aggressively as design-build.
According to ENR data on the Top 400 largest U.S. general contractors, CMAR was used on 36% of their projects overall, with the top 25 firms applying it on 47% of their work. That adoption rate reflects where experienced contractors and sophisticated owners have landed on the question of which delivery method handles complex projects most reliably. CMAR offers both cost transparency during design and direct control over the architect relationship.
California’s CMAR Framework
Under California Public Contract Code Section 20146, counties may use CMAR on projects over $1 million in place of the traditional lowest-bidder process. The CM can be selected through either the lowest responsible bidder or the best-value method. Senate Bill 914 expanded CMAR to additional public entities for infrastructure projects, excluding roads.
Public CMAR projects must still comply with competitive subcontractor bidding under Public Contract Code Sections 22160 through 22169. The CM’s self-performance is restricted under Section 6956 to prevent conflicts of interest and ensure subcontractor participation.
Private CMAR work operates without that public bidding overlay, with contract terms negotiated between the parties. Public entities considering CMAR in California should confirm which code sections apply to their specific project type before proceeding.
When CMAR Is the Right Choice
CMAR works best when the owner needs cost visibility during design, wants to maintain the architect relationship, and is managing a project complex enough to benefit from a CM’s input before the GMP is set. Healthcare facilities, educational buildings, data centers, and phased commercial projects are where the method is most consistently applied.
It is less suited to projects where scope is well-defined from the outset and the primary objective is lowest construction cost through open competitive bidding. In those cases, design-bid-build delivers cost transparency without the two-phase contract structure CMAR requires.
WakeCo provides CMAR and construction management services across Southern California’s commercial, industrial, and public works sectors. Contact us to discuss your project and whether CMAR delivery aligns with your budget, schedule, and risk requirements.
Frequently Asked Questions
What does CMAR stand for in construction?
CMAR stands for Construction Manager at Risk. The construction manager is engaged during the design phase to provide preconstruction services, then assumes the role of general contractor under a Guaranteed Maximum Price once design is sufficiently complete. The CM is “at risk” because it bears financial responsibility for any costs that exceed the GMP.
How is the GMP structured in a CMAR contract?
The Guaranteed Maximum Price includes trade costs, general conditions, the CM’s fee, and contingency, with contingency tracked as a discrete line item with documented draws. If the project finishes under the GMP, savings can be shared between owner and CM at a pre-agreed percentage. Costs above the GMP are absorbed by the CM unless they result from owner-directed scope changes or differing conditions handled through a formal change order.
How does CMAR differ from design-build?
CMAR keeps separate contracts between the owner, architect, and construction manager, preserving the owner’s direct relationship with the design team. Design-build consolidates design and construction under one contract, compressing the schedule more aggressively but reducing owner control over design. A meta-analysis of more than 4,600 projects found CMAR provides greater design transparency and owner involvement throughout the process.
What are California’s requirements for CMAR on public projects?
Under California Public Contract Code Section 20146, counties may use CMAR on projects over $1 million, selecting the CM through the lowest responsible bidder or best-value method. Competitive subcontractor bidding is still required under Sections 22160 through 22169, and the CM’s self-performance is restricted under Section 6956. Senate Bill 914 expanded CMAR to additional public entities for infrastructure projects, with roads excluded.
What types of projects are best suited for CMAR delivery?
CMAR is most effective on complex projects where the owner benefits from cost intelligence during design, including healthcare facilities, educational buildings, data centers, and large phased commercial projects. Owners who want to maintain the architect relationship and need cost transparency before the GMP is locked in are the clearest fit.
