← Project Management

Sheet G-138
PjM PACE

Project Deliveryconcept

Construction Manager roles: CM-as-Advisor vs CM-as-Constructor (CM at Risk)

One-line orientation

A CM as Advisor gives the owner advice but does not hold the construction contracts. A CM as Constructor acts as the builder, holds the trade contracts, and carries the construction risk defined by its agreement.

Key points

  • CM-as-Advisor / CM-as-Agent (CMa):

    • Acts as the owner’s representative during design and construction.
    • Provides expertise in scheduling, cost estimating, constructability review, and bid-package coordination.
    • Does not hold any construction contracts — the construction contracts are the owner’s. The owner may hold multiple prime contracts with the trades, or retain one general contractor; the CMa advises across either arrangement.
    • Carries no construction risk; compensated with a fee (advisory / agency role only).
    • Architect-of-record relationship is unchanged; architect still administers the construction contract.
  • CM-as-Constructor / CM at Risk (CMc):

    • Engaged early in the design process — typically alongside the architect — to provide design-phase input.
    • Transitions to acting as the general contractor during construction: holds all trade contracts, manages subcontractors, and self-performs or subcontracts all work.
    • Carries construction cost and schedule risk within the agreed scope. Approved contract changes may adjust that risk.
    • Contract is typically structured as a Guaranteed Maximum Price (GMP). Cost risk depends on the agreed scope, allowances, contingencies, contract adjustments, and owner changes.
    • More expensive than a traditional competitively bid GC because there is no competitive GC procurement.

CM-as-Advisor vs CM-as-Constructor: who holds the trade contracts

Same three parties on the same tier — the models differ in which of them the trades hang from, and in which general conditions govern.

View diagram Hide diagram

Scroll horizontally to explore

Owner contract relationships under CM-as-Advisor versus CM-as-Constructor Two stacked relationship panels sharing one tier grid. Each panel puts Architect, Owner, and the construction manager on a single tier inside a quiet band naming the general conditions that bind them, and carries the AIA document number on every contract line. Top panel, CM-as-Advisor: the owner contracts the architect on B132 and the CMa on C132, inside the A232 General Conditions band; the CMa advises and holds no trade contracts. The highlighted A132 line forks below the owner to two alternatives with the word or between them: one general contractor on a single contract, or multiple primes on one contract per trade. Either way the owner is the party holding them and the CMa only advises. Subcontractors hang below the general contractor on A401. The architect holds its consultants on C401. Bottom panel, CM-as-Constructor: the owner contracts the architect on B103 and the CMc on A133, inside the A201 General Conditions band; the CMc acts as the contractor and carries the guaranteed maximum price. The highlighted line is A401, from the CMc down to its subcontractors, because under this model the CMc holds every trade contract. The architect again holds consultants on C401. A closing note records that the CMc is engaged early, alongside the architect, and that there is no competitive general-contractor bid: the arrangement costs more and buys schedule and quality control. CM-as-Advisor (CMa / agent)advises · holds no trade contracts · no construction riskA232 General Conditions — the CMa familyB132C132A132C401A401ArchitectOwnerCMaadvisor · no trade contractsConsultant(s)General contractorone contractMultiple primesone per tradeorSubcontractorseither way, the OWNER holds themthe CMa only advisesCM-as-Constructor (CMc / at-risk)acts as the contractor · holds all trade contracts · carries the GMPA201 General Conditions — the CMc familyB103A133C401A401ArchitectOwnerCMcthe contractor · GMPConsultant(s)Subcontractorsthe CMc holds every trade contractengaged early — alongside the architect · no competitive GC bid: costs more, buys schedule + quality control

Document numbers are drawn without year suffixes; the numbers are stable, the editions are not.

Confusions / comparison

CM-as-Advisor / CM-as-AgentCM-as-Constructor (CM at Risk)
RoleOwner’s representative; advisory onlyGeneral contractor with early design-phase involvement
Holds trade contracts?No — the owner holds them (multiple primes, or one GC)Yes — CMc holds all subcontracts
Carries construction risk?NoYes (cost + schedule)
CompensationFee for advisory servicesConstruction contract (typically GMP)
Engaged whenDesign or pre-constructionEarly — often alongside architect
Effect on costOwner retains control; no premium for GC roleMore expensive than competitive GC bid; no competitive GC procurement
GMP typical?NoYes

→ Design-Bid-Build (pp-delivery-design-bid-build): the baseline DBB framework CMa modifies · Design-Build and IPD (pp-delivery-designbuild-ipd): other early-collaboration delivery models · Cross-method comparison (pp-delivery-method-comparison): CMa and CMc in the full delivery method matrix.