Construction Management at Risk - Design-Build for Water and Wastewater Projects - page 304

Construction Expertise During Design
When using CMAR delivery, the CMAR firm is introduced to the project early in design.
During the preconstruction phase, the CMAR develops cost estimates and critical path
schedules, and performs constructability reviews and value engineering. Subcontractor
involvement is also earlier for CMAR projects than for traditional delivery methods, and
the CMAR structure allows owner input into prequalification of subcontractors for the
project. By introducing construction expertise into a project early in design, a collab-
orative environment is created, which results in schedule and budget requirements being
fully understood and thus having a greater likelihood of being satisfied (Beard et al. 2001).
Acceleration of the Project
In addition to helping with subcontractor selection and providing construction expertise
to the design, the CMAR can also accelerate the project by releasing specialty equipment
and beginning construction before the final design of the project is complete (CMAA
2010). This is done by phasing or fast-tracking early work packages. The owner and
designer will also be involved in any early procurement of process equipment to assist
with specifications, design information, and management of procurement tasks.
Maintaining Competition
There are several opportunities for competition when utilizing CMAR delivery. First,
engineers and CMAR firms compete for the work based on qualifications and sometimes
on fees. Second, when preparing the GMP or cost proposals for early work packages, the
CMAR firm solicits pricing from subcontractors and suppliers to provide specialty ser-
vices, material, and equipment. Finally, the CMAR's GMP is presented for owner approval
in an open-book manner in which all costs are transparent and known. The owner may
accept or reject the CMAR's GMP, which provides an additional degree of competition
and owner leverage due to the second right of refusal.
Cost Certainty Early in the Project
In traditional DBB, the engineer provides an estimate of cost, but cost certainty for the
project is not established until the design is complete and contractors have bid the project.
In CMAR delivery, the CMAR firm, with limited assistance from the engineer and owner,
develops the GMP for the project, which includes the cost of work, overhead, profit, and
contingency. GMP development typically occurs at or about 60 percent design but may
be prepared as early as 30 percent design and as late as 90 percent design as required by
the owner.
CMAR At-Risk for Schedule and Budget
In CMAR delivery, the CMAR firm is contractually obligated to meet the owner's sched-
ule and budget requirements. The CMAR is at-risk to provide the project on schedule and
within the GMP. If the total project costs exceed the budget, the CMAR is responsible for