Construction Manager at Risk

Lloyd Construction is a leader in working with both public and private sector clients under the Construction Manager at Risk (CMAR) delivery method. A Construction Manager at Risk is typically selected at the same time that the design team is selected, and works side by side with the design team throughout the design process. Once design is nearly complete, the CMAR gives the project owner a Guaranteed Maximum Price (GMP).  Once the GMP is accepted and construction documents are completed, construction begins.

We have worked as a CMAR in the private sector for over thirty years. Since the State of Arizona began allowing state agencies to utilize CMAR in 2001, Lloyd has set the standard for public agencies using this method for the very first time, including The University of Arizona and Pima County. CM at Risk comprises 80% of our current work.

The CMAR is selected though a qualifications-based process, rather than by the traditional bid method. To maximize the benefits of the CMAR method, this process is usually completed shortly after a design team is selected. This allows us to work hand-in-hand with the design team throughout the design phase, providing pre-construction services such as estimating, value engineering, and constructability reviews.

CMAR offers several critical advantages over the traditional design-bid-build method:

• Streamlining the process. We can shorten the time from the start of design to the start of construction by as much as 30 percent. Design, cost analysis, drawings, permitting and the construction process take place concurrently.
• Controlling costs. The Owner not only knows the cost of the work, but also the reasons behind the cost, so that informed decisions can be made about features and options that may impact cost without impacting quality or utility. This is crucial, since as much as 75 to 85 percent of real savings occur before construction starts.
• Minimizing client risk. Through our pre-construction phase involvement, Lloyd is able to offer a Guaranteed Maximum Price (GMP) within an established budget. At Lloyd Construction, the GMP is just that, guaranteed to be the maximum price. No change orders are ever issued by Lloyd with a GMP unless the owner requests a change in scope of the project.
• Emphasizing quality and service. Instead of relying on complex contracts and an adversarial relationship to assign responsibilities, working as a CMAR allows us to take a team approach to quality, cost and scheduling.