Construction Management at Risk (CMAR) | Understanding California Regulations, Advantages & Improvement Scopes

What construction manager at risk means

In a construction manager at risk, or CMAR, delivery model, the owner typically holds one contract with the designer and another with the construction manager. The construction manager provides agreed preconstruction services and may later take responsibility for construction under the terms of the contract.

The parties may negotiate a guaranteed maximum price, but the timing, included work, allowances, contingencies, and exceptions are contract matters. The CMAR name alone does not create price certainty or assign every risk.

How CMAR changes project planning

Compared with a traditional design-bid-build process, CMAR can bring construction input into the design period. That may help the team study access, sequencing, trade coordination, long-lead items, and packaging before the drawings are complete.

The owner still needs a clear decision process between the designer and construction manager. Early packages can move work sooner, but they can also create rework or scope gaps if assumptions, design responsibilities, and interfaces are not documented.

California public projects need authority-specific review

There is no single CMAR procurement rule that applies to every California public entity. Public Contract Code section 20146 covers qualifying infrastructure projects over $1 million for a county or a public entity governed by that county's board of supervisors. It applies to county-owned or leased infrastructure other than roads and is scheduled to remain in effect only until January 1, 2029. Its conditions should not be treated as a statewide template for cities, schools, state agencies, or private work.

Before procurement, the awarding body should confirm its legal authority, selection method, required notices, labor rules, contractor registration, bonding, and approval process with its procurement and legal teams. The current statute and solicitation control.

Define the contract before relying on the benefits

A useful CMAR agreement makes the preconstruction work and the path to construction authorization measurable. Owners should be able to see what is included, who approves it, and what happens if the price or scope cannot be agreed.

• Preconstruction deliverables, design milestones, estimates, and constructability reviews
• The basis and timing of any guaranteed maximum price, including allowances and contingencies
• Trade-contractor selection, bid transparency, self-performed work, and conflict procedures
• Design responsibility, changes, schedule ownership, insurance, bonds, and closeout duties
• Public-works registration, prevailing-wage, payroll, and apprenticeship duties when applicable