Florida Construction Management at Risk
Florida's Construction Management at Risk (CMAR) delivery model is a project structure in which a construction manager assumes financial liability for delivering a project within a Guaranteed Maximum Price. This page covers the definition, operational mechanics, common deployment scenarios, and decision boundaries that distinguish CMAR from other project delivery methods used across Florida's commercial and public construction sectors. Understanding how CMAR functions under Florida statute and procurement rules is essential for owners, contractors, and design professionals navigating the state's regulated construction environment.
Definition and scope
Construction Management at Risk is a project delivery method in which a Construction Manager (CM) is hired early in the design phase and contractually commits to a Guaranteed Maximum Price (GMP) for project completion. Unlike a traditional design-bid-build arrangement, the CM acts simultaneously as a consultant during preconstruction and as the at-risk general contractor during construction. The "risk" designation refers specifically to the CM's financial exposure: if actual costs exceed the GMP, the CM absorbs the overrun rather than passing it to the owner.
In Florida's public sector, CMAR is one of the expressly authorized delivery methods under Florida Statutes § 255.103, which governs construction management services for state agencies. Florida counties, municipalities, school boards, and state university facilities boards each operate under overlapping statutory authority—principally Florida Statutes Chapter 255 and Chapter 287—that defines procurement thresholds, selection criteria, and contract requirements for CMAR arrangements. This framework is distinct from the design-build delivery model, which combines design and construction services under a single entity without the GMP mechanism being set during a separate preconstruction phase.
This page covers CMAR as it applies to Florida-licensed contractors and Florida-regulated public and private construction projects. Federal construction projects—such as those governed by the Federal Acquisition Regulation (FAR)—and projects located outside Florida are not covered here. CMAR as practiced in other states may differ substantially in statutory authority, procurement procedures, and licensing requirements. The scope does not extend to design-build or integrated project delivery (IPD) hybrids, which are addressed separately in the Florida construction project delivery methods resource.
How it works
CMAR follows a two-phase operational structure that separates preconstruction advisory services from at-risk construction execution.
Phase 1: Preconstruction Services
During design development, the CM provides cost estimating, constructability reviews, schedule analysis, and value engineering recommendations alongside the architect or engineer of record. The CM holds no GMP at this stage and is compensated on a fee basis. Florida public owners typically select the CM through a qualification-based or best-value process under the Consultants' Competitive Negotiation Act (CCNA), Florida Statutes § 287.055.
Phase 2: At-Risk Construction
Once design reaches a defined completion percentage (commonly 60–90% construction documents), the CM and owner negotiate the GMP. Upon GMP execution, the CM assumes full financial risk for delivery. The CM self-performs select scopes or subcontracts work—Florida law requires the CM to comply with subcontractor requirements and competitively bid trade packages above defined dollar thresholds for public projects.
The numbered steps that define this transition include:
- Owner issues a Request for Qualifications (RFQ) or Request for Proposals (RFP) for CMAR services.
- Owner selects CM through a scored evaluation process.
- CM and design team collaborate through schematic and design development phases.
- CM prepares a GMP proposal based on agreed-upon design documents and an Owner-approved contingency allowance.
- Owner and CM execute a GMP amendment to the base contract.
- CM procures subcontractors through competitive bidding per Florida statute thresholds.
- Construction proceeds; CM manages schedule, budget, and quality against the GMP.
- Project closeout follows inspection, certificate of occupancy, and final accounting of savings or contingency use under the Florida construction project closeout process.
Permitting on CMAR projects proceeds through the same local building department channels applicable to any commercial project in Florida. The CM, holding a Florida general contractor license, typically pulls the building permit as the contractor of record. The Florida construction permitting process applies uniformly regardless of delivery method.
Safety obligations under CMAR follow Florida construction safety regulations and federal OSHA 29 CFR Part 1926 (OSHA Construction Industry Standards). The CM bears primary responsibility for site safety as the general contractor of record.
Common scenarios
CMAR is most frequently deployed in the following Florida project contexts:
- Public K–12 school construction: Florida school boards routinely use CMAR under the authority of Florida Statutes § 1013.45, which authorizes school districts to use construction management services. Fast-track schedules and community accountability make the GMP structure attractive.
- State university and college facilities: The State University System and Florida College System facilities boards use CMAR on dormitory, laboratory, and classroom projects that require early CM involvement due to complex phasing.
- Healthcare and medical facilities: Private hospital and ambulatory care expansions where phased occupancy, infection control, and regulatory compliance under Joint Commission standards demand early constructability input.
- Municipal and county infrastructure buildings: Courthouses, emergency operations centers, and public safety facilities where budget certainty and qualified CM oversight are procurement priorities.
Decision boundaries
CMAR is not the appropriate delivery method for every Florida construction project. Several structural factors distinguish when CMAR fits versus when design-bid-build or design-build is more suitable.
| Factor | CMAR | Design-Bid-Build | Design-Build |
|---|---|---|---|
| Owner controls design | Yes | Yes | Partially |
| Price certainty before construction | GMP negotiated mid-design | Set at bid | Set at contract award |
| CM selected on qualifications | Yes | No (low bid) | Varies |
| Single point of responsibility | No (separate A/E and CM) | No | Yes |
| Early contractor involvement | Yes | No | Yes |
Florida public owners must document a formal basis for selecting CMAR over design-bid-build. For state agency projects, this typically requires a written determination filed with the Department of Management Services (Florida DMS) or the relevant facilities authority.
The Florida commercial construction contracts framework governs the structure of CMAR agreements, including GMP provisions, contingency handling, and audit rights. Owners should also review the Florida prompt payment act to understand downstream payment obligations to subcontractors and suppliers once the GMP contract is in effect.
Licensing requirements for firms providing CMAR services on Florida projects are governed by the Florida Department of Business and Professional Regulation (DBPR). The CM entity must hold a Certified General Contractor license under Florida Statutes Chapter 489. Firms holding only a Registered General Contractor license face geographic limitations that may restrict their eligibility on statewide public projects.
Scope limitations: This page addresses Florida-specific statutory authority, licensing, and procurement rules for CMAR. It does not address federal procurement regulations, other states' CMAR statutes, or private international construction contracts. Projects on federal land within Florida—such as military installations—fall under federal procurement authority and are not within the scope covered here.
References
- Florida Statutes § 255.103 – Construction Management Services
- Florida Statutes § 287.055 – Consultants' Competitive Negotiation Act (CCNA)
- Florida Statutes Chapter 489 – Contractors
- Florida Statutes § 1013.45 – School Board Construction Management
- Florida Department of Management Services (DMS)
- Florida Department of Business and Professional Regulation (DBPR) – Construction Industry Licensing
- OSHA 29 CFR Part 1926 – Safety and Health Regulations for Construction
- Florida Division of the State Architect – Facilities Guidelines