Which contract type typically requires the CM to coordinate trade contractors and deliver the project within a Guaranteed Maximum Price?

Which contract type typically requires the CM to coordinate trade contractors and deliver the project within a Guaranteed Maximum Price?

• A. Design-Build
• B. Construction Management At-Risk
• C. Design-Bid-Build
• D. Integrated Project Delivery

Answer: (B)

CM at-Risk uses a Guaranteed Maximum Price and centers the construction manager on coordinating all trade contractors to deliver the project within that price. The CM gets involved early in preconstruction, helps define scope, and then firms up a GMP with the owner. The CM’s responsibility includes selecting and managing subcontractors and controlling costs and schedule so the project stays under or at the GMP. If costs rise beyond the GMP, the CM bears the overrun, which gives the owner price certainty and a single point of accountability for the construction phase. Other delivery methods don’t hinge on a GMP held by a construction manager coordinating subs. Design-Build bundles design and construction under one entity, not a separate CM with a GMP. Design-Bid-Build separates design and construction contracts and typically doesn’t involve a CM guaranteeing a maximum price. Integrated Project Delivery emphasizes collaboration and shared risk, often using target costs or incentives rather than a GMP fixed-price guarantee.

CM at-Risk uses a Guaranteed Maximum Price and centers the construction manager on coordinating all trade contractors to deliver the project within that price. The CM gets involved early in preconstruction, helps define scope, and then firms up a GMP with the owner. The CM’s responsibility includes selecting and managing subcontractors and controlling costs and schedule so the project stays under or at the GMP. If costs rise beyond the GMP, the CM bears the overrun, which gives the owner price certainty and a single point of accountability for the construction phase.

Other delivery methods don’t hinge on a GMP held by a construction manager coordinating subs. Design-Build bundles design and construction under one entity, not a separate CM with a GMP. Design-Bid-Build separates design and construction contracts and typically doesn’t involve a CM guaranteeing a maximum price. Integrated Project Delivery emphasizes collaboration and shared risk, often using target costs or incentives rather than a GMP fixed-price guarantee.