Construction Management at Risk (CMAR) in Orlando

Construction Management at Risk (CMAR) is a project delivery method in which a construction manager enters into a contract with the owner before construction begins, commits to a Guaranteed Maximum Price (GMP), and assumes financial responsibility for delivering the project within that ceiling. This page covers the structural mechanics of CMAR, the scenarios where it is applied across Orlando's commercial construction sector, and how it compares to alternative delivery methods. Understanding where CMAR fits within the broader landscape of commercial contractor contracts and agreements is essential for owners, developers, and public agencies evaluating project procurement strategies.

Definition and scope

CMAR is a dual-phase delivery structure. In the first phase, the construction manager (CM) provides preconstruction services — cost estimating, constructability review, scheduling, and value engineering — while design is still in progress. In the second phase, once the GMP is established and accepted, the CM converts to the role of general contractor, taking on financial liability for the construction work.

The defining legal feature of CMAR is the GMP commitment. If actual costs exceed the GMP, the construction manager absorbs the overrun, not the owner. Savings below the GMP are shared according to a formula negotiated in the contract — a split commonly structured as a percentage to each party. This risk transfer distinguishes CMAR from pure Construction Management Agency (CMA), where the CM advises but bears no cost risk.

In Florida, CMAR is explicitly authorized for public construction under Section 255.103, Florida Statutes, which governs design-build and construction management methods for state agencies. Local governments in Orange County and the City of Orlando operate under similar enabling authority derived from Florida's procurement statutes.

The scope of this page is limited to Orlando, Florida — specifically projects within the City of Orlando's jurisdiction and Orange County. Projects in adjacent municipalities such as Kissimmee, Sanford, or Osceola County are governed by separate procurement rules and fall outside this coverage.

How it works

The CMAR process follows a sequential structure:

1. Owner selects the CM through a qualifications-based or best-value selection process, typically before design is complete — often at the 30% to 60% design completion stage.
2. Preconstruction services begin — the CM collaborates with the architect and owner, providing open-book cost modeling, schedule development, and subcontractor market analysis.
3. GMP proposal is submitted — once design reaches sufficient completeness (commonly 90–100% construction documents), the CM submits the GMP inclusive of all anticipated costs, contingency, and fee.
4. Owner accepts or negotiates the GMP — if accepted, the contract converts to a construction phase agreement; if not, the owner may bid the work competitively or renegotiate scope.
5. Construction proceeds under GMP — the CM self-performs or subcontracts work, managing subcontractor relationships under open-book accounting.
6. Closeout and GMP reconciliation — final costs are audited against the GMP, and any savings are distributed per the agreed formula.

The open-book accounting requirement is a structural safeguard: owners receive access to all subcontract bids, invoices, and change order documentation. This transparency differentiates CMAR from lump-sum delivery, where the contractor's cost structure is proprietary.

For a broader view of how project delivery methods are structured in Orlando's commercial construction market, the Orlando commercial construction project management reference covers organizational frameworks applicable across delivery types.

Common scenarios

CMAR is most frequently applied in the following Orlando commercial construction contexts:

Public sector projects — Orange County Public Schools, the City of Orlando, and Orlando Health have used CMAR for projects where phased delivery and budget certainty are priorities. Florida's public procurement statutes require competitive selection for CMs on public contracts above specific thresholds.

Healthcare and institutional construction — Orlando healthcare facility construction projects benefit from CMAR's early CM involvement because medical facilities require complex coordination between structural, MEP, and specialized systems before design is finalized.

Large mixed-use development — Orlando mixed-use development projects involving phased delivery across commercial, residential, and retail components use CMAR to manage scope sequencing and establish GMP tranches for each phase.

Ground-up commercial construction with design uncertainty — Ground-up commercial construction in Orlando projects where the owner's program is still evolving at project initiation benefit from preconstruction services to refine scope before committing to a fixed price.

CMAR is also applied for office build-out projects in high-rise commercial towers where tenant schedules demand accelerated delivery and the CM must coordinate with the base building while managing multiple specialty subcontractors simultaneously.

Decision boundaries

CMAR is not appropriate for all projects. The following comparison defines when CMAR is selected versus alternative delivery methods:

CMAR requires an owner with sufficient capacity to manage a CM relationship and review open-book financials. Owners without internal project management resources may find design-build delivery more appropriate, as it consolidates design and construction risk under a single entity.

Pre-construction planning services in Orlando and commercial construction cost estimating are the two disciplines most directly integrated into CMAR's preconstruction phase — owners evaluating CMAR should assess their existing capacity in both areas before committing to the delivery method.

Projects below approximately $2 million in construction value rarely justify the administrative structure of a CMAR contract. The CM fee, preconstruction service costs, and open-book audit requirements impose overhead that typically only yields net benefit at larger project scales.

For Orlando-based owners comparing procurement approaches across the full commercial contractor landscape, the Orlando commercial contractor selection criteria reference and the Orlando commercial project bidding process reference provide complementary frameworks for evaluating delivery method fit alongside contractor qualification standards.

The Orlando commercial contractor authority index provides a structured entry point into the full range of delivery methods, contractor categories, and regulatory requirements applicable to commercial construction within the City of Orlando.

References

• Florida Statutes § 255.103 — Construction Management and Design-Build Contracts
• City of Orlando Procurement Division — Construction Services
• Orange County Government — Procurement and Contracts Division
• Florida Department of Management Services — MyFloridaMarketPlace Construction Procurement
• Construction Management Association of America (CMAA) — Owner's Guide to Construction Management
• American Institute of Architects — AIA Contract Documents (CMAR Family)

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