Both methods put a single party on the hook for construction cost, and owners routinely confuse them as a result. The difference is where the designer sits. Under CM at risk the owner holds two contracts and the CM guarantees a price against someone else’s drawings. Under design-build there is one contract and the guarantor owns the drawings too.
Frequently Asked Questions
What does "at risk" mean in CM at risk?
The construction manager guarantees a maximum price and absorbs overruns above it, converting an advisory role into a delivery role.
When is CM at risk the better choice?
When the owner wants an independent designer and early construction input, and is willing to hold two contracts and mediate between them.
Does design-build always cost less?
No. It typically produces earlier cost certainty and fewer change orders, which is a different benefit from a lower initial number.
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