Which of the following best describes a construction manager (CM) at risk?

The defining characteristic of the Construction Manager at Risk (CMAR or CM at Risk) project delivery method is that the CM commits to delivering the project within a Guaranteed Maximum Price (GMP). In this model, the CM acts as a consultant to the owner during the design phase and as the equivalent of a general contractor during the construction phase. The CM holds the contracts with the subcontractors and is financially "at risk" for any construction costs that exceed the GMP, distinguishing this role from a CM as Advisor (CMa).

B. This describes a primary function of both a CM at Risk and a CM as Advisor; it is not the key differentiator.

C. This accurately describes the CM as Advisor (CMa) or CM-Agency model, where the CM is not financially at risk for the construction cost.

D. Early consultation is a hallmark of all CM delivery methods (both CMa and CMAR) and is not the single best description of the "at risk" component.

1. American Institute of Architects (AIA). AIA Document A133–2019, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price. In this document, Article 2.2.3 explicitly states the CM's proposal for the Guaranteed Maximum Price, which is the "sole and absolute responsibility of the Construction Manager." This establishes the "at risk" nature.

2. Construction Management Association of America (CMAA). 2021 An Owner's Guide to Project Delivery Methods. In the section "CM at-Risk (CMAR)," the guide states, "The CMAR provides a guaranteed maximum price (GMP)... The CMAR holds all of the subcontracts and is responsible for the performance of the trade contractors." (Page 11).

3. Pocock, J. B., & Kuennen, S. T. (2005). Comparison of Construction Manager-at-Risk and Design-Build-Operate-Maintain Contracts. Journal of Management in Engineering, 21(1), 11–17. The article defines CMAR: "The CM-at-risk project delivery system entails a commitment by the construction manager (CM) to deliver the project within a guaranteed maximum price (GMP)." (Page 11, Paragraph 2). DOI: https://doi.org/10.1061/(ASCE)0742-597X(2005)21:1(11)0742-597X(2005)21:1(11))