CM/GC – A Brief Overview

Similar to Design-Bid-Build in terms of separation of design and construction work packages and the Owner's control of the design process; but the CM/GC is engaged earlier than in a DBB
CM/GC's scope is performed in two phases:
- Pre-construction: Constructability reviews of the designs prepared by the Designer; risk management; progressive build-up of Phase 2 schedule and final construction price on a GMP or FFP-basis when an acceptable level of design (typically 60–95%) is achieved
- Construction: Constructability reviews of the final designs prepared by the Designer; construction
Early works packages and multiple NTPs may be used to advance long lead items and progressively agree and commence packages of the construction work early to accelerate schedule and mitigate delivery risks
Depending on its legal authority, the pre-construction services may be performed under an initial pre-construction services agreement, with the construction contract executed following successful negotiations of that phase

CM/GC delivery model diagram showing the relationship between Owner, Designer, and CM/GC contractor across pre-construction and construction phases

View full-size CM/GC graphic

CM/GC – Advantages and What it Does Well

As compared to Design-Bid-Build

Schedule acceleration: ability to use early works packages to commence construction of certain elements/segments early
Schedule optimization: ability for the Owner to work collaboratively with the contractor to define the construction schedule before the price is agreed
Transparent / open-book pricing
Involvement in the design review process and performance of constructability reviews to minimize issues/claims arising during construction
Potential for innovations in construction means and methods

As compared to Design-Build (fixed price or progressive)

Owner maintains control of design, which may be necessary for some projects e.g., where there is a high degree of prescribed design requirements and minimal opportunity for design innovation - it also mitigates the off-ramp risk

CM/GC – Challenges and Lessons Learned

Pricing is negotiated after Contractor selection
Risk of an off-ramp if not agreed and risk of a delay if an off-ramp is exercised
Resource-intensive for Owner
Owner manages the design interface
Requires high levels of engagement by the Owner to ensure that the Designer resolves the CM/GC's constructability comments
Less opportunity to incorporate innovation and manage complex integration issues in design compared to a design-build (fixed price or progressive)
As with design-bid-build or design-build, the Contractor's focus is on constructability of the designs and the construction means and methods, rather than lifecycle cost, long-term maintainability and asset renewal - it is up to the Owner to work with its Designer and the Contractor during the pre-construction phase to ensure that the designs and the construction means and methods meet their lifecycle cost and long-term O&M objectives

Explore CM/GC in more depth

Members will soon gain access to detailed CM/GC statutes, sample procurement structures, project case studies, and lessons learned from recent California projects.

Become a member

Powered by Wild Apricot Membership Software