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Construction Management
Construction Management at Risk has become the preferred delivery system for larger construction projects in the State of Florida. The reason is simple and it has to do with the economics of the projects. The CM-at-Risk process involves the contractor from the very beginning of the design process. This activity is called pre-construction services and it allows the CM to give the architects and engineers early input to help keep the project within budget parameters.

Also, because the CM-at-Risk is an open-book process; Owners are more comfortable with pricing. Bidding is still conducted, but it is performed at the subcontractor level - typically involving three to four subcontractors in each category.

Construction Management where an Architect/Engineer develops construction documents and the construction manager serves as the project manager providing pre-construction and construction services

Pros:
  Selection flexibility
  Design phase assistance
  Establishes GMP (Guaranteed Maximum Price) prior to construction
  Single point of responsibility
  Team concept
  Faster schedule delivery
  Change flexibility
Cons:
  More responsibility for Owner to evaluate Guaranteed Maximum Price
  More Owner responsibility to participate


Best suited
Larger new or renovation projects that are schedule sensitive, difficult to define - nor subject to potential change.

Least suited
Smaller projects.

Construction Management Flow Chart

Construction Management

Related
Hard Bid vs. Construction
Management at Risk

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Marketplace Term
Request for Proposal

Industry Term
Construction Management at Risk

Definition
A delivery method where an architect/engineer develops construction documents and the construction manager serves as the general contractor providing pre-construction and construction services. The Construction Manager at Risk provides design phase consultation in evaluating costs, schedule, implications of alternative design, systems and materials during design and serves as a single point of responsibility contracting directly with the subcontractors during construction. Selection is usually based on a proposal, qualification interview process where the Owner selects a contractor based on the best perceived value.

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