Learn About CM At-Risk

Construction Management at-Risk (CMR) is an alternative construction delivery system for public construction projects over $5 million. Under CM at-Risk, the awarding authority uses a two-phase selection process to contract with a construction manager who will also serve as the project’s general contractor. The contract is a cost-plus fixed fee contract with a guaranteed maximum price.

About CM at-Risk

Construction projects typically involve three phases: planning, design, and construction. On a design-bid-build project, these phases run sequentially: a designer prepares a fully detailed design for the project, construction bids are solicited on the complete bidding documents, and the selected contractor – the lowest eligible and responsible bidder – begins construction. The contractor has no involvement in the process until the construction stage.

Under the CM at-Risk method, the CMR firm is typically selected at the outset of or early in the design stage. After a selection process focused on qualifications and fees, the owner executes an initial CM at-Risk contract with the selected firm. As the design progresses, the CM at-Risk firm provides construction management services to the owner.

During the design stage, the owner and the CM at-Risk firm negotiate a guaranteed maximum price (GMP) for the project. When the contract is amended to include the GMP, the CM at-Risk contract becomes a cost-plus contract with a GMP, and the CM at-Risk firm assumes responsibility for the performance of the work, including the work performed by project subcontractors. The owner pays the CM at-Risk firm the actual cost of the work plus the agreed upon CM at-Risk fee up to the GMP.  Change orders resulting from scope changes and unanticipated site conditions encountered during construction may increase the final contract cost.

For additional questions, view the OIG’s Construction Management at-Risk FAQ page.

CM at-Risk Application Instructions

An awarding authority must submit an application to the OIG to use CM at-Risk on building projects of $5 million or more. The OIG uses an application process to assess the qualifications and commitments of the project team as well as other factors. 

Applications are composed of three pieces:

• The CM at-Risk application completed in DocuSign
• The Certificate of Authority, a PDF that must be signed by the awarding authority’s legal counsel; and
• The Submission Certification, a PDF that must be signed by the awarding authority

Please read the steps below for details on completing this process. Submitting previous OIG applications or creating separate documents will not be accepted. 

Step 1: CM at-Risk application in DocuSign

The awarding authority must assign a person to compile the CM at-Risk application in DocuSign. This may be the Owner’s Project Manager (OPM) or another member of the project team who is familiar with the awarding authority’s plans and procedures for using CM at-Risk. For instruction purposes, this person is known as the applicant. The applicant must complete the application via DocuSign. Applicants must pay close attention to the DocuSign prompts. The application will not process until all questions are answered and required attachments are submitted. 

When starting the application process, the applicant must enter their contact information twice in DocuSign. This will ensure the applicant can open and restart the application as needed. Upon completion of the DocuSign portion of the application, a copy will be sent to the applicant for download. 

Please view this job aid for DocuSign directions and support. 

Step 2: Certificate of Authority

Upon completion of the application in DocuSign, the applicant must download the Certificate of Authority, which must be signed by the awarding authority’s legal counsel. 

Step 3: Submission Certification

The applicant must download the Submission Certification to be signed by the awarding authority. The CM at-Risk application, the signed Certificate of Authority, and the Submission Certification must be submitted to the awarding authority to authorize the completion of the application. The awarding authority must ensure that the application is accurate and completed in full. 

Step 4: Submission to OIG

All completed documents, the CM at-Risk application, the Certificate of Authority, and the Submission Certification must be compiled into a single PDF document and submitted via email to the OIG at [e-mail].

A copy of the application as it appears in DocuSign may be used for informational purposes only. If you have any questions about filling out the application, please email [e-mail]. 

As a condition of the approval to use the CM at-Risk delivery method, awarding authorities are required to provide status reports  to the OIG. Within 70 days of project completion, awarding authorities must provide the OIG with a final report detailing the CM at-Risk project.

Projects

The OIG has reviewed over 322 applications to use the CM at-Risk delivery method for building projects and issued a "Notice to Proceed to Use CM at-Risk" letter. Download the project list to see approved projects.

An approval letter is conditioned upon the awarding authority using a CM at-Risk firm and trade contractors that have been certified by the Division of Capital Asset Management and Maintenance (DCAMM) in accordance with M.G.L. c. 149, § 44D, and that have submitted update statements.

The awarding authority and contractors must comply with the prevailing wage law. 

Exempt Agencies

These agencies are exempt from the requirement to obtain prior OIG approval for CM at-Risk contracts, but they are required to submit their CM at-Risk procedures to the OIG for review and approval:

• DCAMM
• The Massachusetts Port Authority (Massport)
• The Massachusetts Bay Transportation Authority (MBTA)
• The Massachusetts Water Resources Authority (MWRA)
• The Massachusetts State College Building Authority
• The University of Massachusetts Building Authority 

Report to the Legislature

In October 2009, the OIG filed a legislatively mandated report on the CM at-Risk alternative delivery method entitled "Experience of Massachusetts Public Agencies with Construction Management at Risk Under M.G.L. c. 149A." The study provides public owners with an interest in using M.G.L. c. 149A with valuable data, procedural information, and practical advice.

Training

To provide guidance to public officials and others interested in learning more about the CM at-Risk delivery method, the OIG Academy offers a one-day course, Construction Management at-Risk Under M.G.L. c. 149A, to guide public officials on the CM at-Risk delivery method. To review course content and register for the next class, view the OIG Academy course catalogue.

Model Documents

DCAMM has developed model documents for CM at-Risk projects, including sample contract templates and forms.

The Massachusetts School Building Authority has developed model contracts for Owner's Project Manager Services and Designer Services on CM at-Risk projects.

Last updated:	March 10, 2026