Choosing a project delivery method is a crucial component of any building project. While private organizations can choose from a range of options, public entities like schools are limited to those specified in state law.
In Iowa, K-12 projects have traditionally used a design-bid-build delivery method, but since 2022 the Construction Manager At-Risk (CMaR) method is available. While this method works well for complex projects with extensive coordination, it may not fit every school district’s needs.
In this article, we will describe the CMaR delivery method and its hiring process to help you determine if this method is right for your district.
Traditional K-12 Delivery Method: Design-Bid-Build
The option of entering a CMaR contract is a new development for Iowa public schools. Traditionally, K-12 projects in Iowa have been limited to design-bid-build contracts.
With this delivery method, a school district hires an architect who completes design work and a contractor after bidding. Contractors use the documents produced by the design team to assemble and submit bids, with the lowest responsible bidder awarded the project.
Beyond this traditional approach, schools have had the option of hiring a Construction Manager, also known as a Construction Manager-Agent (CMA). Under Iowa law, CMA is not an official delivery method; it is a professional service a school district can add to a design-bid-build contract.
A school district is free to hire a CMA just as they would hire any service. For an additional fee, the CMA will work with the architect during the design process to establish a budget and scope. The CMA will remain on the project during construction to:
- Review safety and work programs
- Review schedules with prime contractors
- Administer general conditions within the work documents
A CMA does not hold contracts with the architect, prime contractors, or subcontractors. Instead, the school district holds these contracts, with the CMA playing a managerial role.
CMaR for K-12 Projects
In July 2022, the CMaR became available for public projects in Iowa. This method—popular with large-scale private projects like hospitals—involves a Construction Manager overseeing the project from start to finish.
Unlike a CMA, a CMaR holds contracts with subcontractors. They also set a Guaranteed Maximum Price (GMP), putting them financially “at risk.”
CMaR Hiring Process for Schools
The first step of hiring a CMaR is announcing your intent to enter a GMP contract and outlining selection criteria. This should be done at least 14 days before publishing a Request for Qualifications (RFQ) and can be done through a relevant plan room, a lead-generating service, your district’s website, or an associated website.
Issuing an RFQ
Next, your district will issue an RFQ with selection criteria and basic project parameters, including the scope, site, schedule, and potentially a budget. An architect can assist with this process and help you set parameters.
The RFQ should be posted in a contractor plan room or on your district’s website no less than 13 but no more than 45 days before the response date.
Issuing an RFP
After evaluating the qualifications packages, your district will issue a Request for Proposal (RFP) to those meeting the selection criteria. The RFP should identify the CMaR’s fee for preconstruction and construction services and explain how the CMaR will interact with the design team.
You may also ask for a GMP at this point, though it may prove difficult before design work begins. If you desire a GMP, the CMaR should provide adequate contingency amounts.
After receiving proposals, you will publicly open and read aloud all contractors who submitted. Late or non-conforming proposals must be rejected.
Selecting a CMaR
The next step is to evaluate and rank each proposal, making this information publicly available. You will then negotiate with the highest-ranked CMaR.
If you cannot reach a negotiation, you will move on to the second-highest-ranked CMaR until one is selected.
The CMaR will then select subcontractors, following a similar RFQ/RFP process. With this delivery method, the CMaR may also perform some construction work, but they will need to participate in the bidding process.
Is the CMaR Delivery Method Right for Your Project?
The CMaR delivery method offers many benefits that may appeal to public schools. First, the selection process is based on qualifications—not the lowest bid. This approach can reduce risk when hiring a contractor and help your district achieve an integrated design and construction team.
The CMaR also holds all contracts with subcontractors, minimizing the owner’s responsibility. With a GMP, the CMaR is responsible if the project goes over budget. This incentivizes them to manage costs at all project stages and provide the design team with up-to-date cost information.
Despite the benefits, a CMaR delivery method may not fit every school project. Its selection process can be complex and time-consuming, and districts should prepare by devoting staff to managing the details.
We recommend hiring an architect before selecting a CMaR. An architect can help determine if the CMaR delivery method fits your project, establish selection criteria, and guide you through the RFQ/RFP process. Since the CMaR and architect are under separate contracts, it makes sense to consult an architect first.
CMaR works well for complex projects with extensive coordination.
Generally, the CMaR delivery method works best for large-scale projects involving extensive coordination with multiple consultants, contractors, and specialty contractors. On a smaller project, it may add unnecessary complexity.
While the method may work well for a new facility, you might avoid it for smaller items within your master plan.
Starting a K-12 Project in Iowa
Iowa public school districts now have more options for project delivery. No longer required to use a design-bid-build contract, districts can consider the possibility of hiring a CMaR.
While the delivery method helps manage costs and complexity on large-scale projects, it can add unnecessary steps to a renovation or master plan item. An architect can help you evaluate your needs and determine if this approach fits your goals.
If you choose a design-bid-build approach, your architect will guide you through bidding by hosting a pre-bid conference, issuing addenda, and leading bid day. Prepare for these steps by reading about bidding/negotiation on a public project.