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Guide to Different Construction Procurement Methods | ©2022 ProjectSight
4. Construction Management-
at-Risk (CMAR)
Those overseeing a large, complex project may break the project
up into several segments and use management contracting
procurement to assign a Construction Manager (CM) to supervise
each segment. These CMs each engage subcontractors to
complete their part of the project.
The advantage of this method is that it can reduce the owner's
risk and is more likely to produce effective communication
because the owner is communicating only with the management
tier of the project teams. However, it can result in a lack of cost
competition and a loss of control for the project owner. There is
also the risk of intentional cost escalation due to the decentralized
nature of the management structure.
CMAR is a great option for busy owners
who don't want to be involved in every
phase of the construction project—as
long as they can find a good CM to be
their representative.
