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.

Projects

The OIG has reviewed over 308 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. 

Application

An awarding authority (excluding exempt agencies) 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.

How to Apply

The OIG will review an awarding authority’s complete application within 60 days.

Upon approval to use the CM at-Risk delivery method, awarding authorities are required to provide project milestone information to the OIG. Milestones must be submitted using this form. 

In accordance with 945 CMR 2.09, within 70 days of project completion, the awarding authority must provide the OIG with a final report detailing the CM at-Risk project. The final project report must be submitted using this form.  

What You Need

Under M.G.L. c. 149A, § 4, the OIG will issue a Notice to Proceed when the public agency demonstrates :

1. Authorization from its governing body to enter into a CM at-Risk contract, including any public vote results.
2. Capacity, an approved plan, and procedures to procure and manage the CM at-Risk process.
3. Procedures ensuring fair competition, evaluation, and reporting throughout procurement.
4. A public building project with an estimated construction value of at least $5 million.
5. A written determination that CM at-Risk is appropriate for the project.

Before submitting an application, the public agency must assign or hire an owner's project manager and procure the services of a designer. [M.G.L. c. 149A, § 3] 

Application Review and Approval Process

Email one copy of the application to [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. 

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:	April 29, 2025