Caddo Parish utilized the Construction Management At Risk (CMAR) process for the renovation of the Walter B. Jacobs Nature Center.
Caddo Administrator advised the Caddo Commission that CMAR will be utilized for the $10 million pickleball complex in southeast Shreveport.
This summary of the CMAR process was prepared by the Caddo Administration at the request of Caddo Commissioner John-Paul Young for the benefit of the taxpayers.
PARISH OF CADDO
Construction Management at Risk (CMAR)
SUMMARY
Construction Management at Risk (CMAR) is an alternative to the traditional bid process, governed by Louisiana R.S. 38:2225.2.4. CMAR is often used for larger, complex projects with large budgets. It protects against price overruns caused by changing material costs, providing better financial predictability than traditional bidding.
Rather than posting the project specifications and accepting the lowest bid, under CMAR, the Parish requests qualifications from contractors through a competitive process, and a five-member committee, appointed in accordance with the statute, reviews and vets all applicants and selects the contractor.
Once selected, the Parish and contractor break down the project's design and logistics and agree on a maximum price and timeline. Subcontractors can still submit proposals to the contractor. All laws regarding ethics, conflicts of interest, and nepotism still apply.
CMAR vs. Traditional Bidding (i.e., Design-Bid-Build)
CMAR
Requires State approval before proceeding
Requires an RFQ process to select CMAR contractor.
RFQ is advertised in official journal and on website.
Architect, CMAR contractor, and entity collaborate on design and schedule with costs estimates at 60% and 90% of design phase to have accurate costs estimates. This process must be completed before construction begins.
RFQ allows the entity to obtain references, review prior history of similar projects, and check safety record.
Contractors are scored by a committee based on responses to RFQ.
Requires a Guaranteed Maximum Price providing price security and eliminating costly change orders.
Entity works with CMAR contractor to select subcontractors based on prior work history, references, and cost estimates.
Design decisions in the entity's control
Budget overruns are the responsibility of the public entity.
Early cost input, collaborative planning, financial risk shifted to the CMAR contractor, strong choice for complex projects requiring cost certainty.
Must adhere to all applicable Louisiana laws related to ethics, conflicts of interest, and nepotism.
Traditional Bidding
Does not require State approval Requires advertisement in official journal to select contractor with lowest bid to complete project after design is complete.
Design and construction are separated. The final design must be completed before contractor selection through the bid advertisement. Any changes in design or increased costs are managed through change orders.
Bid concentrates primarily on the low bidder rather than the bidder's qualifications and track record. A committee does not review the bid.
Does not require a Guaranteed Maximum Price. If prices change after the bid, the contractor requests a change order to cover the increased costs which increases the overall budget of the project.
Contractor chooses subcontractors and submits costs for entire bid. Entity has no involvement in choice of subcontractors.
Design decisions in the contractor's control
Budget overruns are the responsibility of the CMAR contractor.
Clear separation of design and construction. Competitive bidding may lower upfront costs but increase the risk of change orders and disputes. Best for simple, well-defined projects where design changes are unlikely.
Must adhere to all applicable Louisiana laws related to ethics, conflicts of interest, and nepotism.
PARISH OF CADDO
Construction Management at Risk (CMAR)
What is CMAR?
An alternative project delivery method in which a CMAR contractor is brought into a project early in the design phase and later assumes the role of the general contractor. The CMAR contractor works alongside the architect and the public entity during design, providing input on cost, constructability, and scheduling. Once the plans are finalized, the CMAR contractor serves as the general contractor during construction. The CMAR contractor is selected through a competitive process as required by Louisiana R.S. 38:2225.2.4.
The CMAR Process
1. At least sixty days (60) prior to proceeding to use CMAR for any project, the public entity shall deliver written notification of the proposed CMAR project by name and description of the project, together with the reasons to use CMAR, to the House and Senate transportation, highways, and public works committees for review and approval.
2. After the CMAR process is approved, the public entity selects the CMAR contractor using the following process:
The entity issues a request for qualifications (RFQ) to select a CMAR contractor for preconstruction and construction services, specifically stating that the project is a CMAR project and the reasons the entity deems the CMAR to be in the public interest and beneficial to the entity.
A Selection Review Committee (SRC) is appointed by the entity to review the RFQs, score or rank the proposers, and recommend an award to a CMAR contractor. The members of the SRC shall be identified in the RFQ. The committee shall consist of no more than five individuals as follows:
(a) One design professional in the discipline of, but not involved in, the project.
(b) One licensed contractor in the discipline of, but not involved in, the project.
(c) One representative of the entity.
(d) Two members at large
The RFQ shall be advertised in the official journal and on the entity’s website.
The RFQ shall be advertised at least twice within the 30-day period prior to the deadline for receipt of responses.
The RFQ shall include: (a) preconstruction scope of services, (b) submission criteria, (c) grading criteria, (d) scoring methodology, (e) total fees and compensation payable to the CM for preconstruction services, and (f) estimate of the probable construction costs for the project.
The RFQ may request: (a) the proposer’s surety, (b) previous methodologies used by the proposer on other projects, (c) the extent to which the proposer intends to self-perform some of the work, (d) past performance of the proposer, including timely completion, (e) proposed management and staffing, (f) proposer’s safety record, and (g) the proposer’s standard safety plan.
Within 90 days after the deadline for responses to the RFQ, the SRC shall make a written recommendation as to which proposer should be awarded the contract.
The results of the SRC, inclusive of its findings, grading, score sheets, and recommendations, shall be available for review by all proposers and shall be deemed public records.
3. After award and execution of the contract with the CMAR contractor, the following actions shall proceed:
The architect, in consultation with the CMAR contractor, shall proceed with design services.
The entity shall obtain an estimate of the project's cost from both the CMAR contractor and the architect when the final design of the project is not more than 60% complete, and again when it is not more than 90% complete.
The CMAR contractor shall provide the entity with a Guaranteed Maximum Price (GMP) for the project's construction before or upon completion of the final design.
If the entity and the CMAR contractor are able to negotiate and establish a GMP to render construction services for the project, and additionally, to agree upon constructability, construction phasing and sequencing, and the maximum number of contract days to complete the project, the entity may then award the contract for construction services to the CMAR contractor for the construction phase of the contract.
If the entity and the CMAR contractor are unable to agree on the GMP and the project's construction, the project shall be readvertised for public bid using the design-bid-build delivery method, and the selected CMAR contractor shall be prohibited from bidding on the project.
Advantages of CMAR
The CMAR structure supports informed decision-making early on, enabling design and construction teams to collaborate rather than work in isolation.
Early involvement of a construction manager improves cost control, coordination, and overall project outcomes.
Instead of waiting until designs are finalized, CMAR enables the public entity to work alongside architects and stakeholders from the outset, providing real-time cost insights and constructability feedback.
Sets a guaranteed maximum price that is negotiated between the entity and the CMAR contractor.
The CMAR contractor commits to delivering the project within a set budget, assuming the risk for any overruns beyond that price unless the scope of work changes. This offers public entities greater financial predictability than traditional bidding.
Entities benefit from professional construction insight during design while still maintaining a direct relationship with their architect.
If actual costs exceed the GMP, the CMAR contractor typically absorbs the difference.
CMAR is especially valuable for larger, more complex projects where budgeting accuracy and risk management are critical.
What CMAR Does Not Do:
Eliminate the competitive process. An RFQ process must be used to select the CMAR contractor. The CMAR contractor obtains quotes and identifies subcontractors through collaboration with the entity.
Allows an entity to select anyone they choose to complete the project. A specific process must be used to select the CMAR contractor, as outlined in Louisiana law.
Prevent subcontractors from participating in the project. The CMAR contractor, working in collaboration with the public entity, develops a process to inform subcontractors about the project and obtain quotes from subcontractors to perform work on the project.
Eliminate the requirement as outlined in Louisiana law prohibiting conflicts of interest, nepotism, kickbacks, etc.