Construction Program Guide
Construction Manager / General Contractor Project Delivery
The Construction Manager / General Contractor (CM/GC) project delivery method allows an owner to engage a construction manager during the design process to provide constructability input. The Construction Manager is generally selected on the basis of qualifications, past experience or a best-value basis. During the design phase, the construction manager provides input regarding scheduling, pricing, phasing and other input that helps the owner design a more constructible project. At approximately an average of 60% to 90% design completion, the owner and the construction manager negotiate a 'guaranteed maximum price' for the construction of the project based on the defined scope and schedule. If this price is acceptable to both parties, they execute a contract for construction services, and the construction manager becomes the general contractor. The CM/GC delivery method is also called the Construction Manager at-Risk (CMR) method by state law in some states.
Authority/Legal Basis - Laws
- Section 1303 of the "Moving Ahead for Progress in the 21st Century Act" (MAP-21) authorizes contracting agencies to use the CM/GC project delivery method. SEP-14 approval is no longer necessary as long as the contracting agency complies with the statutory provisions in Section 1303.
- MAP-21 Section 1303 requires FHWA to promulgate regulations as are necessary to implement the statutory provisions. The FHWA published a Notice of Proposed Rulemaking (NPRM) for Construction Manager / General Contractor (CM/GC) Contracting in the June 29, 2015 Federal Register (Docket No. FHWA-2015-0009). The NPRM can be found on the Federal Register Web site at: https://www.federalregister.gov/articles/2015/06/29/2015-15617/construction-managergeneral-contractor-contracting. The closing date for comments was August 28, 2015.