As many commercial contractors know, construction management-at-risk (or CM-at-risk) has become a preferred delivery method in many markets such as education and health care. CM-at-risk engages the builder early in the development process and entails a commitment by the contractor to deliver the project within a guaranteed maximum price, or GMP. In Texas, CM-at-risk has been primarily limited to commercial construction in the public sector; but in 2007, legislation changed the definition of what makes a project eligible for CM-at-risk delivery.
CM-at-risk is now an option for public agencies responsible for infrastructure such as water utilities, flood control, transit and transportation. These owners were limited to using the traditional low-bid model, which often goes something like this: contractor finds problems in the drawings or conflicts in the field; change orders are needed; project takes longer and costs more than expected; owner blames contractor; contractor blames engineer; nobody is happy in the end. While this may not always be the case, chances are we’ve all been a part of a job like this.