What Is CMAR? Construction Manager at Risk and the Guaranteed Maximum Price, Explained
CMAR, construction manager at risk, is a way to deliver a building where the owner hires the architect and the contractor separately, and brings the contractor in during design instead of after it. The contractor helps price and plan the job as the drawings develop, then commits to a guaranteed maximum price (GMP) before construction and builds it. Costs above that price, without an approved change, are the contractor's risk. That is the "at risk" part.
| Method | Contracts the owner holds | When the builder joins | How the price is set |
|---|---|---|---|
| Design-bid-build | Two: architect, then contractor | After the drawings are done | Competitive bid on finished drawings |
| CMAR | Two: architect and construction manager | During design | Guaranteed maximum price before construction |
| Design-build | One: design and construction together | At the start | Develops with the design, often to a fixed or maximum price |
How CMAR sits between the two more familiar methods. Our design-build vs design-bid-build guide covers the other two in depth.
Have an architect and want a builder at the table early? That is what our preconstruction and CMAR work is for. Licensed in Oregon (CCB #198582) and registered in Washington (L&I MODERNI888R7). Call (360) 326-2747.
How a CMAR job runs
A CMAR job has two stages, and the contractor's role changes between them.
- Preconstruction. The owner selects the construction manager while the architect is still designing. The CM prices the design as it develops, checks the schedule, flags what will be hard or expensive to build, and suggests changes while they are still cheap to make.
- The GMP. Once the design is far enough along, the CM puts together a guaranteed maximum price: the estimated cost of the work, contingencies for what cannot be known yet, and its fee. The owner accepts it, and it becomes the contract ceiling.
- Construction. The CM bids out the trade packages, hires the subcontractors and builds the job as a general contractor would, within the GMP.
What the guaranteed maximum price does and does not do
The GMP is a ceiling, not a fixed price. If the job costs more than the GMP and the owner did not approve a change, the construction manager absorbs it. If the job costs less, what happens to the savings depends on the contract: some return all of it to the owner, others split it.
Two things the GMP does not do. It does not cover changes the owner asks for after it is set; those come through change orders and can raise it. And it is only as good as the design behind it. A GMP set too early, on thin drawings, carries more contingency, because there is more the contractor cannot see yet. The sources we checked are consistent on this: the GMP is one of the most misunderstood parts of CMAR, and reading how contingency, allowances and savings are handled matters more than the headline number.
When CMAR makes sense
- You want your own architect. CMAR keeps the designer working for you, not for the builder.
- Cost certainty matters before construction. You get a ceiling before the work starts, built on real pricing, not a bid on a finished set you can no longer change cheaply.
- The job has unknowns. Existing buildings, tight sites and phased work benefit from a builder who sees the design while it can still change.
- Speed matters. Work can be priced and ordered in packages before every drawing is final.
When the scope is simple and fully drawn, a straight bid can be enough. When you would rather hand off design and construction together, design-build puts both under one contract.
CMAR on our own jobs
- Mercantile Village, Lake Oswego. We ran the landlord work as CMAR from December 2025 to March 2026, getting the shell ready ahead of the tenant. Then we built the 3,790 square foot Thirsty Caterpillar bookstore and cafe inside it, finished in May 2026.
- Tri County Industrial, Building 17, Tualatin. Site and landscaping work for erosion control and water management, run as CMAR from November to December 2025.
Both are smaller than the public projects most CMAR guides describe. The method still works the same way: early pricing, a ceiling before construction, and one builder accountable for the cost. Related terms are in our commercial construction glossary.
Frequently asked questions
What does CMAR stand for?
Construction manager at risk. The contractor joins the project during design as a construction manager, then takes on the risk of building it for a guaranteed maximum price, the way a general contractor would.
What is a guaranteed maximum price?
A ceiling on what the owner pays for the construction, set before building starts. It covers the estimated cost of the work, contingencies and the contractor's fee. Costs above it are the contractor's unless the owner approves a change.
Who keeps the savings if a CMAR job comes in under the GMP?
It depends on the contract. Some return all of the savings to the owner, others split them between the owner and the contractor. Read that clause before you sign.
What is the difference between CMAR and design-build?
In CMAR the owner holds two contracts, one with the architect and one with the construction manager. In design-build the owner holds one contract that covers both design and construction. Both bring the builder in early.
Is CMAR only for big public projects?
No. It is common on public work, but private owners use it too. We have run CMAR on landlord work for a retail center in Lake Oswego and on site work for an industrial building in Tualatin.
The bottom line
CMAR brings the builder in during design and ends with a guaranteed maximum price before construction. You keep your own architect, get real pricing while the design can still change, and get a ceiling on the cost. Read the contract for how contingency, allowances and savings are handled, because that is where the GMP's real value sits.
Modern Northwest has built commercial projects across Portland and Southwest Washington since 2005. Tell us about your project and we will talk through which delivery method fits it.
Want a builder in early?
Tell us about the project and where the design is. We will show you how CMAR or design-build would work for it.
Request a Free Consultation