Construction Manager at Risk - An Introduction to EJCDC New Document Series-Construction Manager at Risk - An Introduction to EJCDC New Document Series Recording

Video Transcription

Video Summary

Coy Veech, Vice President at Friesen Medicals and Senior Consultant specializing in construction management and risk, presented an introduction to the EJCDC's new Construction Manager at Risk (CMAR) document series. CMAR is a project delivery method combining contractor collaboration during design with contractor assumption of construction risk, often under a Guaranteed Maximum Price (GMP). Unlike traditional design-bid-build or pure design-build methods, CMAR emphasizes early contractor involvement, improving innovation, risk management, schedule acceleration, and cost control by integrating preconstruction services such as constructability reviews and procurement planning.<br /><br />The CMAR approach offers advantage for complex, multi-phase, or renovation projects needing collaborative decision-making, when managing tight budgets or schedules, or projects with high-risk profiles. It allows qualification-based selection rather than low-bid awards, enhancing contractor quality and project outcomes. Owners retain direct contracts with designers and CMAR, while the CMAR manages subcontractors. An owner's advisor may provide expert oversight for those lacking internal project management expertise.<br /><br />Coy discussed practical aspects of CMAR including contract documentation, compensation structures, contingency management, and procurement strategies, emphasizing the need for clear definitions to avoid disputes. The EJCDC documents offer flexibility to adapt to varied state laws and project types, encompassing advisory documents, proposal forms, conditions, work authorizations, change management, and closeout processes.<br /><br />Challenges include a more complex procurement process, greater owner involvement, and the necessity to treat the CMAR as a contractor once the GMP is set. Success depends on proper CMAR engagement during design, robust risk allocation, transparent open-book accounting, and understanding CMAR is not suitable for all projects. The series promotes collaborative, cost-effective construction management aligned with current industry realities like supply chain constraints.

Keywords

Coy Veech

Friesen Medicals

Construction Manager at Risk

CMAR

EJCDC document series

Guaranteed Maximum Price

project delivery method

contractor collaboration

risk management

preconstruction services