In a recent government meeting, officials discussed the benefits of utilizing the Construction Manager at Risk (CMAR) method for managing large-scale construction projects. The CMAR approach, which allows for a more collaborative and transparent bidding process, aims to reduce the frequency and impact of change orders that have historically plagued municipal projects.
One key advantage highlighted was the upfront negotiation of costs, which minimizes unexpected expenses during construction. Officials noted that with CMAR, the fixed fee is the only guaranteed payment, while other costs are based on percentages that can be scrutinized more closely than traditional bidding methods. This transparency is expected to foster competitive bidding among subcontractors, ultimately driving down costs.
The discussion also touched on the historical challenges faced by governing boards, particularly the prevalence of change orders that often resulted from low initial bids. A representative shared a personal experience from over a decade ago, where the introduction of a reputable CMAR significantly reduced change orders and kept projects on schedule. This shift not only saved money but also improved accountability among contractors.
Officials emphasized that while the CMAR model does involve markups, these are clearly defined and visible, contrasting with traditional methods where such costs can be obscured. The meeting concluded with a consensus on the effectiveness of the CMAR approach for large projects, suggesting that it could be a viable strategy for future municipal construction endeavors.