Which statement applies to both CM as Agent and CM at-Risk contract types?

Which statement applies to both CM as Agent and CM at-Risk contract types?

• A. CM must always take on the role of general contractor.
• B. CM is never involved in design decisions.
• C. CM can function in an advisory role for the entire engagement.
• D. CM guarantees a fixed price.

Answer: (C)

The key idea is that both CM as Agent and CM at-Risk can serve as an ongoing advisor to the owner throughout the project. In CM as Agent, the manager represents the owner, coordinating design, procurement, and construction activities and offering guidance and recommendations without taking on construction liability. This keeps the CM focused on advisory roles and owner representation for the entire engagement. In CM at-Risk, the manager enters early to help with constructability and cost planning, still acting as a primary adviser to the owner on design, schedule, and cost decisions, even while taking on construction responsibilities and risk. Because of these overlapping advisory capabilities, both arrangements can function in an advisory role for the entire engagement. First choice is not correct because CM does not always serve as general contractor. The second choice is not correct because CM is often involved in design decisions or design reviews. The fourth choice is not correct because a fixed price is not inherently guaranteed in both delivery methods (CM at-Risk uses mechanisms like GMP, not a universal fixed price).

The key idea is that both CM as Agent and CM at-Risk can serve as an ongoing advisor to the owner throughout the project. In CM as Agent, the manager represents the owner, coordinating design, procurement, and construction activities and offering guidance and recommendations without taking on construction liability. This keeps the CM focused on advisory roles and owner representation for the entire engagement. In CM at-Risk, the manager enters early to help with constructability and cost planning, still acting as a primary adviser to the owner on design, schedule, and cost decisions, even while taking on construction responsibilities and risk. Because of these overlapping advisory capabilities, both arrangements can function in an advisory role for the entire engagement.

First choice is not correct because CM does not always serve as general contractor. The second choice is not correct because CM is often involved in design decisions or design reviews. The fourth choice is not correct because a fixed price is not inherently guaranteed in both delivery methods (CM at-Risk uses mechanisms like GMP, not a universal fixed price).