Owner/developers are well-acquainted with the CMR model. In the CMA delivery method, your company gains the benefits of a construction manager while not accruing the associated costs that come with construction management at-risk.
Comparative Pricing Structure
|Owner's Rep 1%–3%||N/A|
|Subcontractor Default Insurance 1.15%–1.5%||N/A|
|Payment and Performance Bond 2%–3%||N/A|
|Taxes and Insurance 1.1%–1.5%||N/A|
|Construction Contingency 2%–3%||N/A|
|Staff Cost 4%–6%|
Owner Risk & Cost Parameters
|Model 1 - Risk/Cost|
Construction Labor on Payroll; materials purchased directly; no 3rd parties involved.
|Model 2 - Risk/Cost|
Owner manages project; purchases all materials; subcontracts out labor.
|Model 3 - CMA Risk/Cost|
Owner manages project with advisor support; contracts out labor and most material purchases.
|Model 4 - CMR Risk/Cost|
Owner fully contracts out project management; subcontractor manages all labor and materials.