CONSTRUCTION MANAGER GENERAL CONTRACTOR (CM GC) AGREEMENT 2025

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The Construction Manager at Risk (CMAR) is a delivery method which entails a commitment by the Construction Manager (CM) to deliver the project within a Guaranteed Maximum Price (GMP) which is based on the construction documents and specifications at the time of the GMP plus any reasonably inferred items or tasks.
The method is known as construction manager at risk because the recipient or subrecipient and construction manager negotiate a guaranteed maximum price (GMP) during the design phase, the construction manager will be responsible for any costs that exceed that amount.
The CMAR method is sometimes referred to as CM/GC, because it effectively combines the construction manager and general contractor into a single role. When using CMAR, the owner contracts a design firm to help begin the design process for a new project.
Construction attorneys learn early on that there are two forms of construction management pure construction management, where the construction manager is an agent of the owner (CM-Agency); and construction management at-risk, where the construction manager is legally responsible for delivering the project on-
The Construction Manager/General Contractor (CM/GC) project delivery method allows an owner to engage a construction manager during the design process to provide constructability input. The Construction Manager is generally selected on the basis of qualifications, past experience or a best-value basis.
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Under construction management (CM) at risk, the awarding authority uses a two-phase selection process to contract with a construction manager who will also serve as the projects general contractor. The contract is a cost plus fixed fee contract with a guaranteed maximum price.
Typically a GC would self perform a certain scope and manage all the subcontractors. A CM firm could be hired by the owner to manage the GC, or manage all the subcontractors, which all depends on the project delivery method and contract.

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