In Construction Management At-Risk project delivery, a General Contractor (GC)/CM is selected on the basis of his/her qualifications (not on the basis of the lowest bid, as in Design-Bid-Build) is invited to join the latter part of the design process. The GC/CM offers constructability, cost, and scheduling advice as the design is finished, and often guarantees the completion of the project for a guaranteed maximum price negotiated before design is 100% complete (GMP). Hence, the GC/CM is ‘at risk’ if the project cannot be completed for less than the GMP.
This setup means construction can begin prior to the completion of each element of the design, and that the design may not need to be documented as specifically as in a Design-Bid-Build contract. The GMP also allows you to continue fundraising with a guaranteed total cost, and can simplify billing and accounting.
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