Which delivery method provides the owner with a guaranteed maximum price and scheduled performance by the CM?

Which delivery method provides the owner with a guaranteed maximum price and scheduled performance by the CM?

• A. Integrated project delivery
• B. CM at-risk
• C. Design-build
• D. Design-bid-build

Answer: (B)

In a CM at-risk arrangement, the Construction Manager commits to a Guaranteed Maximum Price for the defined scope and to meeting a set construction schedule. This means the owner gets price certainty and a firm timeline because the CM bears the risk of cost overruns beyond the GMP (unless changes are approved). The CM works with the design team during preconstruction to refine cost and constructability, then proposes a GMP once the design is developed enough to estimate costs accurately. If the project stays within the GMP, costs stay under the ceiling; if not, the CM absorbs overruns, making the CM highly motivated to control both cost and schedule. This approach differs from the others: integrated project delivery focuses on collaborative risk-sharing among all parties rather than a single guaranteed price by the CM; design-build bundles design and construction under one contract with price set through negotiation or a lump sum but not necessarily a GMP guaranteed by the CM; design-bid-build relies on competitive bids after design, with no GMP guarantee from a CM.

In a CM at-risk arrangement, the Construction Manager commits to a Guaranteed Maximum Price for the defined scope and to meeting a set construction schedule. This means the owner gets price certainty and a firm timeline because the CM bears the risk of cost overruns beyond the GMP (unless changes are approved). The CM works with the design team during preconstruction to refine cost and constructability, then proposes a GMP once the design is developed enough to estimate costs accurately. If the project stays within the GMP, costs stay under the ceiling; if not, the CM absorbs overruns, making the CM highly motivated to control both cost and schedule.

This approach differs from the others: integrated project delivery focuses on collaborative risk-sharing among all parties rather than a single guaranteed price by the CM; design-build bundles design and construction under one contract with price set through negotiation or a lump sum but not necessarily a GMP guaranteed by the CM; design-bid-build relies on competitive bids after design, with no GMP guarantee from a CM.