What is a key distinction between CM as Agent and CM at-Risk contracts?

What is a key distinction between CM as Agent and CM at-Risk contracts?

• A. In CM as Agent, the CM primarily advises and does not guarantee price.
• B. There is no difference between CM as Agent and CM at-Risk.
• C. In CM at-Risk, the CM commits to a price and coordinates trade contractors.
• D. CM at-Risk designates the CM as the sole project decision-maker.

Answer: (C)

The core distinction is how price and risk are handled. In CM at-Risk, the construction manager commits to a price (usually via a Guaranteed Maximum Price) and takes on the role of coordinating trade contractors to deliver the project. This arrangement links the CM to cost outcomes and assigns significant cost risk to the CM, within the contract terms. In CM as Agent, the CM provides advisory and coordination services for the owner without guaranteeing price, so the owner bears the price and cost risk. The statement that best captures the difference is that CM at-Risk commits to a price and coordinates trade contractors.

The core distinction is how price and risk are handled. In CM at-Risk, the construction manager commits to a price (usually via a Guaranteed Maximum Price) and takes on the role of coordinating trade contractors to deliver the project. This arrangement links the CM to cost outcomes and assigns significant cost risk to the CM, within the contract terms. In CM as Agent, the CM provides advisory and coordination services for the owner without guaranteeing price, so the owner bears the price and cost risk. The statement that best captures the difference is that CM at-Risk commits to a price and coordinates trade contractors.