The Rise of CMAR and How it Will Effect General Contractors in 2025 and Beyond
The Rise of CMAR:
How Public Work Projects Are Shifting and What It Means for General Contractors across the US.
In the arena of public work projects, a quiet revolution is underway, reshaping how contracts are procured and executed. This paradigm shift puts the Construction Manager at Risk (CMAR) through a project bidding method that is growing in preference even for traditionally low-bid public projects. Here is what we know about CMAR, and how it is impacting the strategies contractors use to secure new project work? Let’s dive in.
What is CMAR?
Construction Manager at Risk (CMAR) is a project delivery method in which a construction manager is engaged early in the project development process. Unlike the traditional low-bid approach, where the lowest price typically wins, CMAR emphasizes collaboration between the owner, architect, and contractor from the start. The construction manager provides pre-construction services, such as cost estimation and value engineering, and later guarantees the project’s maximum price. Adopting CMAR reduces risk for the project owner while fostering a more efficient and cooperative environment. By integrating the contractor early in the project development process, CMAR aims to minimize/eliminate costly project-change-requests and re-evaluation delays during construction.
How CMAR Challenges the Low-Bid Approach
For decades the low-bid approach was the cornerstone of public work projects. It was straightforward: contractors competed to offer the lowest price, and the winning low-bid walked away with the contract. While simple, this approach often prioritized cost over quality, sometimes leading to project delays, disputes, legal action, or subpar outcomes.
CMAR disrupts this model by placing greater emphasis on qualifications, expertise, and collaboration. In many cases, a contractor’s ability to deliver value through innovative solutions and cost-saving measures is as important as their pricing. This shift is gradually eroding the dominance of low-bid contracts, even in the public sector.
The Brand Constructors specialize in helping General Contractors navigate this new landscape. Our team works with yours to develop strong Statement of Qualifications (SOQs) that differentiate your firm and get you past the initial gatekeeping phase of CMAR Request for Proposals (RFPs). If you’re ready to stand out in the competitive CMAR space, contact us!
Benefits of CMAR for Contractors and Owners
While CMAR presents challenges, it also opens up new opportunities for contractors who adapt their approach. Here are some key benefits:
Stronger Relationships with Owners and Architects
CMAR encourages early collaboration, giving contractors the chance to build trust and rapport with project owners and architects. These relationships can lead to repeat business and long-term partnerships.
Greater Input on Project Design
Contractors in a CMAR role can provide valuable input during the design phase, suggesting materials, methods, or scheduling adjustments that reduce costs or improve project outcomes.
Reduced Risk of Disputes
The collaborative nature of CMAR minimizes misunderstandings and miscommunications, reducing the likelihood of legal disputes or delays once construction begins.
Fairer Compensation
With CMAR, contractors often negotiate fees based on their expertise and the value they bring, rather than being locked into razor-thin profit margins from a low-bid contract.
Challenges Contractors Face with CMAR
Of course, the CMAR process isn’t without its hurdles, particularly for contractors used to the low-bid model:
Complex SOQ Requirements
Securing a CMAR project typically requires a robust Statement of Qualifications (SOQ). Contractors must showcase their experience, capabilities, and innovative approach, which demands more time and resources than a traditional bid submission.
- Heightened CompetitionCMAR contracts attract a wider pool of competitors, including larger firms with extensive preconstruction capabilities. Standing out in a crowded field can be daunting for smaller contractors.
- Longer Preconstruction PhaseWhile early involvement in the project can be beneficial, it also means a longer preconstruction phase, which ties up resources and staff before any actual construction begins.
The Brand Constructors helps contractors craft compelling SOQs reflecting their unique strengths and setting them apart from the competition. We know how to highlight your expertise and capabilities, build trust with decision-makers, and position your firm for success in this competitive process. Let us take the complexity out of SOQ development—reach out today for a consultation! Call: 504.355.4119
Developing a Winning SOQ for CMAR Projects
Given the increasing prevalence of CMAR in public work projects, contractors must refine their SOQ to highlight key differentiators. Here’s what to focus on:
Showcase past projects that reflect your ability to deliver on time, within budget, and to the owner’s satisfaction.
Preconstruction Expertise
Detail your approach to cost estimation, value engineering, and risk management during the preconstruction phase.
Collaborative Track Record
Include testimonials or case studies that demonstrate your ability to work effectively with owners and architects.
Innovation and Problem-Solving
Highlight examples of how you’ve solved unique challenges or delivered cost savings through creative solutions.
This is where
The Brand Constructors excels. We partner with General Contractors to develop polished, professional SOQs that reflect your firm’s expertise and demonstrate your ability to lead in the CMAR arena. Ready to elevate your approach? Contact us today and let us help you win your next CMAR contract.
Adapting to the Future of Public Work Projects
As CMAR becomes more common in public work projects, general contractors must evolve to remain competitive. While the low-bid approach won’t disappear entirely, the advantages of CMAR—collaboration, reduced risk, and better project outcomes—are hard to ignore.
By investing in the development of compelling SOQs, honing preconstruction capabilities, and building relationships with project owners and architects, contractors can position themselves for success.
The Brand Constructors are here to help you navigate these changes, providing expert guidance on branding, SOQ preparation, super-charged website development, and marketing strategies that set you apart.
