Construction Management at Risk: The Smart Choice for Private Owners, New Developers and First Time Entrepreneurs
Since being founded over 46 years ago, the team at Miles-McClellan Construction have become experts in a variety of project delivery methods. While every project is different and comes with a unique set of circumstances, we have found that construction management at risk (CMR) is not only an ideal option for experienced construction teams and developers, but beneficial to those with less experience or handling a unique situation, such as private owners, first-time entrepreneurs, less savvy real estate developers and those facing uncertain renovation challenges.
In this blog, let’s dive into the advantages of CMR for these types of clients.
Expert Guidance and Support
The complexities involved in construction projects can be overwhelming for those with less experience, where understanding regulations, managing subcontractors and overseeing schedules are key to a successful project. Miles-McClellan handles the project from start to finish, including pre-design, project and risk management, project cost estimate, budgeting and engineering services. This takes the pressure off of the client and reduces the likelihood of costly mistakes.
Cost Control
Construction, when not carefully planned with all involved in the project, can have many unforeseen costs. CMR is a process in which a construction manager commits to deliver a construction project within a guaranteed maximum price (GMP). This is particularly valuable for private owners and first-time entrepreneurs who may not have experience managing large budgets or understanding how quickly costs can escalate during construction. In a situation where the scope of a renovation is not clear, a construction manager’s early, in-depth involvement makes way for more accurate budget assessment.
Transparency
Transparency is a crucial aspect of any construction project, and with CMR, a sense of collaboration is established from the very beginning and includes the owner, designer, architect, stakeholders, etc., which leads to better communication and problem-solving. For those with less experience in construction, transparency ensures that they can stay informed and make necessary adjustments to the project as it progresses, without feeling overwhelmed by technical jargon or unknown costs.
Southern Lion
When Miles-McClellan Construction was hired for a 90,000 SF retail renovation of an existing Sears building, it was agreed that CMR was the best project delivery method for the renovation. We were able to transform the space into Southern Lion, a retail venue hosting 300 booths for local merchants to display merchandise, and amenities include conference spaces, showroom design houses, a café, along with in-house storage locations and loading docks.
CMR Services Provided for This Client Include:
- Project management and administration through project leadership and overall team coordination
- Identify opportunities for economy of scale
- Value analysis services, value engineering, cost savings suggestions and best value recommendations
- Constructability studies and reviews
- Logistics planning
- Development of GMP, owner’s contingency and CMR contingency
- Project planning and scheduling
- And much more
Southern Lion was completed on time and on budget. In fact, the owner was able to receive $398,586 in savings! Learn more about how we used CMR project delivery to ensure the development of Southern Lion was a success.