This paper examines each state and determine what barriers, if any, exist to the use of construction management at risk in the public sector.
Construction Management at Risk, a comparatively recent, but never-the-less popular delivery method allows owners to retain the services of a construction manager to provide professional advisory services, along with the architect/engineer early in the design phase.
The idea is to leverage the knowledge of a construction manager during the design stage to help mitigate potential problems during construction. Once design is nearing completion, the construction manager transitions into the role of general contractor and negotiates a guaranteed maximum price with the owner.
Risks and rewards associated with the general contractor role will apply to the construction manager at risk including providing surety bonds, holding subcontracts and risk of completing the work under the guaranteed maximum price.
While this method of project delivery has proven to be of value, many states maintain restrictions on its use. The purpose of this study is to examine each state and determine what barriers, if any, exist to the use of construction management at risk in the public sector. This paper reports on potential impacts of construction management at risk in the public sector and closes with a discussion on the best value for a public owner in its selection of the project delivery method.
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