Vassar College, Chapel Restoration

Some clients prefer to deliver projects by way of a construction management agreement. In this open-book, negotiated contract structure, CVMNEXT, as the builder, joins the project early—either during design or as the design documents are completed.

At this stage, the project’s final cost is determined through the collaborative efforts of the owner, the design team and the builder, resulting in a guaranteed maximum price (GMP). Through this process, the selection of subcontractors, and the detailed direct cost of the work and overhead are shared with full transparency to the owner, and the construction manager is compensated via an agreed-upon fee.

The GMP typically also includes a complete breakdown of project costs, including a contingency fund that can be used by the project team to cover costs for unforeseen conditions, or gaps in the bidding and buyout. To incentivize savings, any remaining contingency funds are typically shared between the owner and the construction manager. This project delivery method maximizes transparency and assurance of completeness for the owner, but is considered to come with a premium administrative cost.