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Office of Construction / Programs & Services / Alternative Contracting
Construction Management at Risk (CM@Risk) may be defined as an integrated team approach applying modern management techniques to the planning, design and construction of a project in order to control time and cost, and to assure quality for the project owner. The team consists of the owner, the architect/engineer and the construction manager (CM). Construction Management at Risk includes pre-construction and construction services. The CM is selected about the same time as the architect/engineer and in his role as owner’s agent; his task is to represent the interests of the owner in all phases of the project.
The CM is selected using the standard Consultant selection process. The CM performs “value engineering or construct ability reviews” for the owner during the pre-construction phase. Pre-construction services include CM cost estimates and budget recommendations, which may pay a major role in cost containment, and requires CM review of contract documentation preparation for construct ability. The owner still has complete approval of all changes or design decisions. The CM, using the budget of the Owner, provides suggestions for alternatives for design, construction materials, and processes. His experience and skill provide a clearer picture to the owner of the cost of different alternatives/methods/materials. At about 50% contract documents phase, the CM submits a Guaranteed Maximum Price (GMP) for acceptance to the owner. The CM warrants to the owner that the project will be built at a price not to exceed the GMP. The CM assumes the risk of meeting the GMP by holding all of the subcontracts.
The method of contracting is a joint venture with Department of Management Services, the Department and the contractor. This contracting method requires all phases to be open through to completion of the project. The following are types that can benefit from Construction Management at Risk:
Building type projects where construction methods and specifications vary between professional groups (i.e., engineer/architect and construction trades).
Innovative funding scenarios, where multiple owners may dictate final project criteria.
Projects where limiting budgets threaten the delivery of the project and where CM alternative can help maintain costs.
Other projects, where construction input is required during early phases of design.
To program Construction Management at Risk (CM@Risk) projects, use contract class 4, item group CMAR, and phase 52. Construction Management at Risk is authorized under F.S. 337.025, Innovative Contracting, which has a cap of $120 million per year. All projects administered under this statute require approval from the State Construction Office.
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