The Benefits of CMAR in Water and Wastewater Design and Construction
The water/wastewater industry faces significant challenges due to growing populations, aging infrastructure and changing environmental regulations. To meet the demand, water and wastewater utilities need critical renewal and replacement projects. In the wake of new legislation allowing collaborative delivery, several municipalities are exploring the Construction Management-at-Risk (CMAR) delivery model for the first time, looking to accelerate project completion as CMAR offers improved collaboration and potentially faster project timelines.
What is CMAR?
CMAR is a project delivery method where the contractor is involved early in design phase (Phase 1, preconstruction). This collaboration with the owner and engineer allows for better decision-making regarding constructability, cost and schedule. During this phase, the owner typically awards two separate contracts typically based on qualifications and experience: one with the engineer and one with the construction manager.
Near design completion, the construction manager transitions into a bid role, submitting a guaranteed maximum price (GMP) proposal with a detailed breakdown of cost and schedule. This GMP becomes the ceiling for project expenses. In the construction phase (Phase 2) the contractor assumes all risk for cost overruns.
During Phase 2, the construction manager acts as the general contractor, managing the project schedule, construction phases, self-performed work and subcontractors.
CMAR is gaining traction as a preferred delivery method for water utilities across the United States. Many utilities are attracted to CMAR because of its collaborative approach and potential for cost control in complex water infrastructure projects. Recently, more states have authorized the use of collaborative delivery methods like CMAR for public works projects. The expansion of collaborative delivery procurement can be found on the Water Collaborative Delivery Association legislative map and the Design-Build Institute of America state maps. States have their own procurement statutes and requirements that may impact the CMAR procurement process and its specific requirements. Municipalities and contractors well-versed in collaborative delivery legislation can make more informed decisions when entering into their next CMAR project.
CMAR Benefits to Water and Wastewater Utilities
Owner, engineer and CMAR engaging early in design offers unique opportunities to approach the complexities of the water market. CMAR delivery method can help alleviate the current uncertainties utilities face while helping the industry be more proactive, saving in project costs that can be allocated to other facility priorities and allow owners to focus on planning the future of their departments and infrastructure needs. Below are a few water industry challenges that can benefit from a CMAR project delivery approach.
Urgency has been a running theme in the water sector with utilities facing water shortages, population growth, expanding regulatory requirements, water quality and aging infrastructure.
Procuring the construction manager early in design allows for streamlined project delivery, increased schedule certainty and potential for accelerated schedule through constructability input and team evaluation of value engineering opportunities.
Global supply chain issues are affecting schedule and costs of the construction industry.
Utilizing the CMAR delivery method, contractors can develop early works packages such as early procurement of long-lead equipment and supplies.
Water and wastewater facilities range in complexity with unknown utilities, concurrent projects, new treatment technology and more.
With key disciplines making decisions in the same room, CMAR offers early collaboration and the flexibility needed to develop analysis on innovative ideas to tackle the unique complexities of water and wastewater facilities.
The water industry is facing financial pressures with budgetary concerns, financing requirement, cost escalations and multiple stakeholder input.
Transparency is engrained in the CMAR delivery method. The contractor submits a GMP using the open-book method where the owner can see each line-item. Once the owner and CMAR agree upon the GMP, the contractor is financially liable if the cost exceeds this maximum. With owner, engineer and contractor working together during preconstruction, estimates can be more accurate, and the team can develop cost-saving ideas compared with real-time project dashboards.
The water market faces a workforce crisis, needing more qualified staff and training to foster their career growth.
CMAR invites the collaboration of all key team members to have a seat at the table, including the most important member, plant operations. Engaging plant operations from the start results in more value engineering ideas, cost and schedule saving opportunities, safety considerations, maintenance of plant operations and a smoother startup and turnover of the plant. Water operators know their facilities best, and CMAR empowers them to speak on the needs of the plant, creating exciting opportunities in the water sector.
Lessons Learned from Successful CMAR Projects
Achieve team commitment during preconstruction.
A CMAR team, being owners, engineers and contractors, who is engaged early and commits to participating throughout the process results in smoother decision-making. CMAR delivery requires full team commitment from the start. Recognizing this level of effort in preconstruction sets the project up for success.
Trust and transparency as a foundation to a collaborative team.
When it comes to water sector challenges, we’re in this together. Establish an environment that invites diverse voices to the table and values input from multiple perspectives and disciplines. Create a space where speaking up about challenges is encouraged and work through those challenges as a team.
Act as one team: Align on project goals, culture and tools.
A team that has full buy-in on agreed-upon project culture makes decisions in the best interest of the project’s goals and agrees on the right tools to support collaboration.
Celebrate, reflect and check in as a team.
Reflecting on successes boosts morale and validates the team’s mission. CMAR projects can be a marathon, and it is important to check in at each milestone.
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