Definition & Meaning
The Construction Manager At Risk (CMAR) Contract Template serves as a formal agreement between the project owner and the construction manager. This contract emphasizes a collaboration where the construction manager is responsible for potential financial risks, ensuring that the project is delivered within an agreed-upon budget and timeline. The CMAR approach is favored for its flexibility and ability to adapt to changes, fostering a more cooperative environment among project stakeholders.
Key Elements of the Construction Manager At Risk Contract Template
The CMAR Contract Template typically includes several crucial components:
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Definitions and Responsibilities: Outlines the roles and duties of both the owner and the construction manager. It clearly defines the scope of work and expectations from both parties.
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Guaranteed Maximum Price (GMP): Establishes a ceiling price that the construction manager commits to not exceed, with the agreement that any cost savings benefit the owner.
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Risk Management and Financial Terms: Details how risks are distributed between parties and includes clauses on insurance and indemnification.
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Change Order Processes: Provides mechanisms for handling modifications to project scope or contract terms.
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Dispute Resolution: Specifies the methods for resolving disagreements, such as mediation or arbitration, to avoid litigation.
Steps to Complete the Construction Manager At Risk Contract Template
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Initial Meeting: Conduct a pre-contract meeting to discuss project details, expectations, and any preliminary concerns.
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Drafting the Contract: Use the CMAR template to draft the contract, ensuring all key sections are filled out, including the GMP, project scope, and timelines.
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Reviewing and Modifying: Both parties should review the drafted contract thoroughly. Amendments can be made to address concerns or clarify terms.
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Legal Review: It is advisable to have legal professionals review the contract to ensure compliance with local and federal laws.
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Signing: Once all parties agree on the terms, signatures are collected to formalize the agreement, taking advantage of platforms like DocHub for electronic signing.
How to Obtain the Construction Manager At Risk Contract Template
The CMAR Contract Template can be acquired through several channels:
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Professional Associations: Organizations such as the American Institute of Architects (AIA) often provide templates.
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Online Platforms: Websites like DocHub offer digital templates, allowing for easy download and editing.
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Legal Services: Law firms specializing in construction law may offer bespoke templates suited to specific project needs.
Important Terms Related to Construction Manager At Risk Contract Template
Understanding key terminology is crucial for using the CMAR contract:
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Owner: The party commissioning the construction project.
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Construction Manager: A professional or firm managing the construction, assuming execution risks within agreed parameters.
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Subcontractor Agreements: Contracts between the construction manager and other service providers for specific project components.
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Performance Bonds: Financial instruments ensuring the construction manager fulfills their contractual obligations.
Legal Use of the Construction Manager At Risk Contract Template
Utilizing the CMAR Contract Template must comply with legal standards:
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Adherence to Regulations: Ensure the contract aligns with federal and state-specific construction regulations.
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Legally Binding Signatures: Electronic signatures must comply with the ESIGN Act to be considered legally binding in the U.S.
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Clause Enforceability: All contract clauses should be legally enforceable, with clear terms to mitigate misunderstandings or disputes.
Examples of Using the Construction Manager At Risk Contract Template
Consider these scenarios where a CMAR contract is effectively employed:
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Large Scale Projects: Used for commercial or public sector projects where budget and timeline control is paramount.
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Complex Renovations: Ensures precise coordination and risk sharing in intricate renovation projects with multiple stakeholders.
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Educational Institutions: Often chosen for school construction projects due to its collaborative approach and cost transparency.
State-Specific Rules for the Construction Manager At Risk Contract Template
The application of CMAR contracts may vary across different states:
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Licensing Requirements: Some states may require construction managers to hold specific licenses.
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Procurement Laws: Certain jurisdictions have laws governing how construction contracts are procured and executed.
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Regional Cost Considerations: Factors like local labor costs can influence the agreed-upon GMP.
Form Submission Methods (Online / Mail / In-Person)
The CMAR Contract can be executed through various submission methods:
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Online Platforms: Utilize tools like DocHub for digital submission, offering features like electronic signing and cloud storage integration.
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Mail Service: Physical copies of the contract may be mailed to each party for signature and archival.
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In-Person Signing: For immediate validation, parties can meet in person to sign and exchange copies of the contract.
