Under Construction Manager at Risk, the owner hires the contractor during design, not after. The construction manager prices the design as it develops, advises on systems and sequence, and then commits to a guaranteed maximum price (GMP) once the documents are far enough along.
Where the risk sits
Above the GMP, cost overruns are the construction manager’s problem — that is the "at risk". Savings below it usually return to the owner, or are shared on a formula agreed in the contract.
When it is the right choice
CM at Risk suits projects where the schedule is tight, the building is complex, or the owner wants a say in which trade contractors are hired. For a simple building with complete drawings, a hard bid may be cheaper.
