Construction Manager at Risk
In a Construction Manager at Risk project, the owner/client has gone through the procurement process approved by the state whereby they put out an RFP for an identified project asking for SOQs from interested contractors. The engineer has been previously selected and hired by the client and the design concept has already been started and is generally at 30% completion when a pre-qualified contractor is selected. Once a contractor has been selected and become part of the design team, they can review the early design for constructability and provide budget pricing at each phase. The client has the freedom to pick the type and brand of equipment it prefers to remain standardized throughout their system. Upon final design, a Guaranteed Maximum Price (GMP) is developed and negotiated with the client. The GMP allows for total transparency as the client can see all of the actual costs, hours worked, equipment used, overhead, and negotiated profit.