The construction industry is constantly evolving, and so are the contractual agreements that govern it. One such agreement that has gained popularity in recent years is the construction manager at risk (CMAR) agreement. This contract type is best suited for complex projects that require a high degree of coordination and collaboration among various stakeholders. In this article, we will discuss the key features and benefits of CMAR agreements.
Firstly, a CMAR agreement is a hybrid approach to project delivery that combines design and construction under a single contract. This means that the construction manager is involved from the early stages of the project, providing input during the design and planning phase. This early involvement helps to identify potential issues and opportunities for cost savings, resulting in a more streamlined and efficient project.
Under a CMAR agreement, the construction manager assumes a significant amount of risk and responsibility. They are responsible for delivering the project within a fixed budget and schedule, and for ensuring that the quality of the work meets the required standards. This incentivizes the construction manager to work closely with the owner and the design team to optimize the project design and delivery process.
Another significant benefit of CMAR agreements is the ability to fast-track projects. By having the construction manager involved in the design process, construction can begin before the design is fully complete. This approach can significantly reduce project timelines, resulting in faster completion and cost savings.
Another advantage of CMAR agreements is the flexibility they offer in terms of project scope and budget. If changes are required due to unforeseen circumstances, the construction manager can work with the owner and the design team to develop cost-effective solutions.
However, it is important to note that CMAR agreements require a high degree of collaboration and communication among all parties involved. The success of the project is dependent on the ability to work together and find solutions to any challenges that arise.
In conclusion, a CMAR agreement is an excellent option for complex construction projects that require a high degree of coordination and collaboration. The early involvement of the construction manager in the design process can result in significant cost and time savings, and the flexibility of the approach allows for changes to be made as required. However, the success of the project is heavily dependent on effective communication and collaboration between all parties involved.