CMaR becoming more popular as an alternative project delivery method

By Andrew Weeks

In the construction and engineering world, several project delivery methods exist.

The more traditional is the “design-bid-build,” which, according to Nate Weisenburger, drinking water practice leader with AE2S in Grand Forks, N.D., is a regimented process.

There also is the more streamlined approach called “construction management at risk,” or CMaR. It is just one of several alternative project delivery methods that is becoming more popular.

Though CMaR has been used by some companies for many years, others are only now becoming more familiar with it. AE2S started using it in 2014 on projects in North Dakota and South Dakota.

Another alternate project delivery method AE2S has used is “construction manager/general contractor” (CM/GC) for a project in Utah.

Alternate project delivery methods, rather than design-bid-build, provide opportunities for clients to get their projects done more efficiently, manage risk, and better control costs. ***

“There are several different ways to deliver projects, and most of the time we follow a prescribed process called design-bid-build,” Weisenburger said.

It may be the most common or traditional type of delivery method, but it also is one that is regimented and time-consuming.

Weisenburger said that process, which is less collaborative than a CMaR, looks something like this:

An engineering firm is hired by the owner of a public works project to complete the design phase. Once the design of the public works project is complete, it is submitted to the review agency for approval. After the review agency is satisfied that the design meets established criteria, the project enters the bidding phase. At that time, contractors interested in submitting a competitive bid obtain plans and specifications and have the opportunity to ask questions and request additional information.

The engineer provides formal clarifications by issuing addendums. Based on the plans, specifications and any issued addendums, contractors are required to submit their bids at a specified date, time and location.

“The bids received by the owner are essentially irrevocable,” Weisenburger said. “Once a bid is submitted, it is accompanied by a bond to basically give it credibility; the owner then has the ability to evaluate the bids received. We, as design engineers, assist the owner by reviewing the bids and provide a recommendation to award a contract to the lowest responsible bidder.”

After the recommendation is accepted by the owner, the contracting process begins, in which a general contractor is hired and construction finally proceeds.

“Like I said, project delivery by design-bid-build is a very regimented process, with emphasis placed on obtaining the lowest possible price for the prescribed work to be completed,” he said.

CMaR, on the other hand, helps streamline the process.

Basically, a CMaR is a project delivery method in which a construction management company acts as the project owner’s consultant during pre-development all the way through the construction phase.

CMARs are a better option if an owner wants a more collaborative delivery process, because it allows the entire project team – designers, engineers, construction managers – to gather early in the proces, said Christopher Thomas, office manager for EAPC Architects Engineers in Fargo, N.D.

This is done so the entire team can collaborate and provide a guaranteed maximum price (GMP) earlier in the process. This allows the owner to start locking into funding and doing those types of things that help them in the long run with, among other things, budgeting.

“The CMaR allows the group to collaborate and work together through the design and into the construction phase to get the best possible outcome of the project,” Thomas said.

The alternate project delivery method AE2S has used most is CMaR. Weisenburger said it is not new – it has been around for a long time – but the company has been using it for about seven years. It is one that can have significant benefits, depending on the project.

The company used CMaR for the Grand Forks Regional Water Treatment Plant. It also was beneficial for clients and projects in Pierre and Sturgis, S.D., and Watford City, N.D.

But it was the Grand Forks Regional Water Treatment Plant, he said, that “takes the cake.”

“The overall project cost was $152 million,” Weisenburger said. “The CMaR delivery method was desirable for the ability to obtain technical input from the contractor on constructability, materials, and other technical aspects during the design phase.

“The information provided by the contractor provided value as it was also used for cost control purposes, where the owner could make informed decisions while knowing the anticipated impact on the bottom line.”

As for the future of alternative project delivery methods, time will tell what other methods will be developed in the future, but for now it seems that CMaR is one that is catching on with some companies.

“It’s definitely becoming more of a mainstream type of delivery method,” Thomas said. “Thirty or 40 years ago it was kind of a oneoff; you’d see it every now and then, but now it seems like it’s much more of the preferred method than going through a competitive public bid type process.”

Thomas said EAPC has used CMaR for years, but he is noticing more companies are starting to use it more as an alternate delivery method.

Design-Bid-Build vs. Construction Manager at Risk Conventional Design Bid Build Method

Owner has a vision to build a building

Owner hires architect to design building

Architect assembles construction documents (Floor Plans, Elevations, Sections, Details and Civil, Structural, Mechanical, Electrical Engineering drawings) and sends them out to bid through an invitation to bid.

Contractors bid the project according to the construction documents provided by the architect.

Owner selects the lowest most qualified bid.

Construction Manager at Risk

Owner has a vision to build a building

Owner hires architect to design building

Owner hires construction manager to build the building

Owner, architect, construction manager collaborate to develop construction documents

During collaboration CM provides owner and architect with estimates for building and provides GMP

CM breaks down the project into bid packages and hires contractors to work with in the GMP provided.