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project design. During construction, the Town would maintain the authority over whether monies from the Construction Contingency fund are expended.
• yCompanies that offer CMAR project delivery are generally concerned about their reputation since most CMAR’ s are selected on a qualifications basis. They are significantly motivated to perform well to uphold their reputation.
• yThe CMAR is far less likely to develop an adversarial relationship with the Town during the course of the project. This results in a construction team that is motivated to perform well for the Town, resolve issues quickly and cost effectively, and maintain a positive working relationship so they can continue working with the Town on future projects. In this manner, risk is better managed and claims / lawsuits are often fewer.
• yThe CMAR process offers the Town“ open book” transparency on how the construction price is developed. All of the sub-contractor bid proposals, CMAR overhead, project management, profit, and contingencies are clearly identified, shared with the Town, and agreed upon before the work begins. This also allows the Town to know the full budget for the project, unlike the DBB method where budget issues may not be discovered until well into the construction process.
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• yBecause the CMAR is ultimately responsible for the schedule and budget, they generally will bid the work to qualified, bondable subcontractors who the CMAR has confidence will construct their scopes of work successfully.
• yThe direct purchase of materials can be streamlined through use of the CMAR procurement method. The CMAR can request bids from material suppliers, coordinate and remain responsible for the quantities, material deliveries, and storage, and assist the Town’ s purchasing department in issuing Purchase Orders directly to the suppliers to realize the tax savings. This saves an enormous amount of coordination time and relieves the Town of the responsibility of material deliveries and timing, storage, supplier delays, shop drawing approvals, etc.
• yThe Town’ s history with this delivery method has been positive with projects being completed on-time or ahead of schedule and under the negotiated GMP. When the cost of the project is less than the GMP, the contingency funds are returned to the Town.
Disadvantages: y • To provide the best value to the Town, the proper selection of the CMAR is critical. This is a“ people” business and
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getting the right combination of skills and expertise is essential for project success.
• yBecause the CMAR provides a GMP for the project, the CMAR is in an“ at-risk” position during construction. Depending on what challenges are faced during construction, the contingencies developed during the GMP negotiation may not be sufficient to cover the costs of dealing with those challenges. Because the CMAR provided a GMP, they are responsible for overcoming the challenge regardless of the cost. This can put them in an adversarial role with the Town if this situation develops.
• yDespite the fact that the CMAR will find it very difficult to pursue change orders from plan ambiguities because they were involved in the design process, they may become very aggressive on change orders due to changed conditions( increase in scope) or adverse weather impacts.
7.2.2.1 CMAR Contracting and Procurement Methods
CMAR is a two-step procurement process; pre-construction services and then construction services. A Request for Qualifications / Proposal( RFQ / RFP) to select the CMAR is the first part of the two-step process. Based on the qualifications submitted, the Town narrows the pool of potential contractors to a short list. The Town can then either select from the short
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list or invite the short listed CMAR’ s to make a presentation. The Town can then select the contractor based on who made the best presentation. A modified method is being considered by the Town that scores the CMAR’ s based on a combination of their pre-construction services pricing, general conditions, and construction fee, combined with their qualifications.
Once the CMAR is selected, an initial agreement on a fixed fee for pre-Construction services is negotiated( unless this was part of the selection process). Pre-Construction services can include the following:
• yPerformance of quantity surveys.
• yValue engineering.
• ySuggestions regarding constructability and methods.
• yDevelopment of a detailed construction schedule.
• ySuggestions regarding cost reductions.
• yParticipation in public outreach.
• yDevelopment of an initial Opinion of Construction Cost.
• yDevelopment of the final GMP after completion of the 90 % construction documents that includes the subcontractor bidding process.
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