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Hiring a construction management company for a commercial building project starts with defining what you need the company to do: act as the constructor, or advise you while you retain the construction contracts. Those roles affect who holds trade contracts, who has authority, how costs are presented, and which risks remain with the owner. Set the project’s priorities and delivery method first, then use a documented RFQ/RFP process to compare the firms, the people they propose, their project-specific plans, and the contract terms—not just their fee.
What should you decide before contacting construction management firms?
Before asking firms to compete, establish what success means for this project and what decisions the owner can make on time. A construction manager can support the owner and design team, but the role does not erase the owner’s responsibilities or automatically transfer every construction risk.
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Write down the project’s scope, target budget and schedule, required quality, site constraints, occupancy or phasing needs, sustainability goals, and specialized technical requirements. Identify the owner-side project manager and the people authorized to make decisions. Note which issues are firm requirements and which are preferences, and identify the owner’s tolerance for cost, schedule, and procurement risk.
Consider conditions that affect the work and the kind of experience a firm must demonstrate. An occupied renovation, for example, may require careful phasing and communication with building users; a project with specialized systems may call for comparable technical experience. Ask for examples that match the project’s actual challenges rather than relying only on broad claims about commercial experience.
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Also decide how much construction authority the owner wants to retain, whether early contractor input is important, and whether procurement rules constrain the selection. These requirements should inform both the delivery method and the evaluation criteria. General U.S. industry guidance cannot substitute for checking the applicable licensing, procurement, insurance, bonding, and contract requirements in the project’s jurisdiction.
What is the difference between a CM-at-Risk and an agency construction manager?
A CM-at-Risk (also called CM as Constructor) may provide preconstruction advice during design and later take on construction responsibilities, often holding trade contracts. An agency construction manager (CM as Adviser) advises the owner but remains an adviser rather than the constructor. The contract, not the label alone, defines the firm’s actual authority and obligations.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problems| Question | CM-at-Risk / CM as Constructor | Agency CM / CM as Adviser |
|---|---|---|
| Who is the CM? | A firm that may move from preconstruction services into the constructor role. | An adviser to the owner during planning and construction. |
| Who may hold trade contracts? | The CM often holds trade contracts; confirm the actual arrangement in the contract. | The owner generally retains construction contracts; specify the arrangement for the project. |
| What can the CM do during design? | Offer input on estimating, scheduling, constructability, logistics, and long-lead procurement. | Advise the owner on matters such as cost, schedule, constructability, and construction methods. |
| What must the owner clarify? | Construction responsibility, the basis and terms of any GMP, trade-contract responsibilities, and retained owner risks. | Advisory scope, deliverables, staffing, fee basis, authority, and communication paths. |
These are broad descriptions, not a substitute for project-specific contract language. The Construction Management Association of America’s guide to CM and PM responsibilities by delivery method explains why responsibilities differ by project delivery approach. The AIA and AGC primer on project delivery terms also emphasizes that several viable methods exist; the right choice depends on the project rather than on a universal ranking.
Which project delivery method fits your project?
There is no universally best delivery method. Choose by weighing the owner’s priorities, project complexity, schedule, procurement rules, desired decision control, and the value of early construction input.
In design-bid-build, the owner typically contracts separately with the architect and builder, and selects the contractor after the design documents are prepared. CM-at-Risk differs in its potential to bring the constructor into the process during design. An agency CM provides advice while the owner retains the construction role and associated contract relationships. These models have different sequencing and contractual structures; the names alone do not tell you how authority, cost responsibility, or risk will work on a specific job.
Use these questions to compare the options:
- Who holds the trade contracts? Identify which party contracts with trade partners and who coordinates their performance.
- Who is responsible for construction performance? Clarify the constructor’s obligations and what remains the owner’s responsibility.
- How valuable is early builder input? Consider whether design-phase estimating, scheduling, logistics, constructability review, or long-lead procurement advice would help this project.
- How much control does the owner need? Decide who makes decisions, who can direct the work, and who can legally bind the owner.
- How should pricing be presented? Decide what fee and cost information you need to compare and when a construction price commitment is expected.
- What schedule and phasing conditions matter? Consider occupancy, sequencing, procurement lead times, and any fixed milestones.
- What do procurement rules require? Public-owner rules and local requirements may constrain the available methods or selection process.
Record the reason for the chosen structure before issuing a solicitation. That gives firms a common basis for responding and makes it easier to spot proposals that assume a different division of responsibility. The AIA-MBA Joint Committee’s procurement and supplement resources are relevant to understanding how delivery choices and procurement documents connect; project-specific legal advice is still important.
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How do you prepare an RFQ and RFP?
Use the solicitation to make the project understandable, define comparable evidence, and explain how the owner will evaluate responses. A common CM-at-Risk process has two stages: an RFQ to evaluate qualifications and establish a shortlist, followed by an RFP for shortlisted firms. Interviews may help distinguish finalists. AGC/NASFA describes three to five firms as a typical shortlist based on its work group’s experience, not as a mandatory or statistically established number; applicable procurement rules may require something else.
In the RFQ, describe the project and request qualifications. Include the scope, known conditions, anticipated schedule, site and occupancy constraints, and any relevant technical or phasing requirements. Ask for evidence that can be checked and compared:
- Comparable completed projects, including their scope, size, complexity, and relevant conditions.
- Owner and design-professional references, with contact details and permission to contact them.
- Names, resumes, roles, and availability of the actual proposed project executive, project manager, superintendent, and preconstruction lead, as applicable.
- The role each proposed staff member performed on the cited projects—not just the firm’s general involvement.
- Safety performance information, along with insurance and surety capacity appropriate to the project.
- Relevant local subcontractor familiarity, capacity, and knowledge of the project area.
- A brief account of the project-specific risks the firm sees and how it would address them.
In the RFP, request a project-specific plan and a comparable fee proposal. Ask how the firm would handle preconstruction, cost estimating and updates, schedule development and updates, constructability review, logistics, procurement, communications, change management, quality and safety coordination, and closeout. For a renovation, for example, the response should address the actual occupancy or phasing conditions you have described—not simply repeat a generic approach.
State your planned evaluation criteria and how they will be scored before proposals arrive. Weight criteria to reflect the assignment; relevant experience, proposed staff, safety, approach, availability, and price need not carry equal weight on every project. Keep records consistent with the applicable procurement rules. Avoid awarding a high experience score to firm-wide work if the people who performed it will not be assigned to your project.
The AGC and NASFA guidance on CM-at-Risk identifies comparable work, references, safety, surety and insurance, team qualifications, approach, and familiarity with the locale as relevant selection factors. Public owners in particular should confirm required procedures before publishing documents or scheduling interviews.
How should you evaluate proposals and interview the team?
Evaluate the proposed people and their project-specific judgment, not only the firm’s reputation or presentation. Interviews can clarify who will actually lead the work, whether that team is available, and how it would respond to your priorities and constraints.
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Use the same questions and evaluation framework for each finalist. Ask the proposed team to explain how it will:
- Develop, update, and communicate estimates and schedules as design and project information develop.
- Identify constructability issues, logistics constraints, procurement needs, and project risks early.
- Coordinate communication among the owner, design team, construction team, and relevant building users.
- Handle changes, quality coordination, safety coordination, and schedule or cost concerns.
- Manage closeout and deliver the records and training the owner needs.
Ask the proposed superintendent, project executive, and preconstruction lead to discuss their own roles and relevant experience. Confirm that the people presented in the interview are the people the firm is committing to assign, and ask how staffing continuity will be handled if someone becomes unavailable. A polished proposal is not a substitute for checking the qualifications, availability, and responsibilities of the team that will do the work.
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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Compare fees only after normalizing what each proposal includes. For CM-at-Risk, separate preconstruction services, general conditions, construction fee, reimbursable-cost rules, self-performed work, contingencies, allowances, insurance, and markups. For an agency CM, compare advisory scope, defined deliverables, staffing assumptions, and fee basis. Note differences in assumptions and exclusions rather than treating them as equivalent. A low fee may reflect a narrower scope, fewer staff, or different reimbursable-cost assumptions, so it is not a complete price comparison on its own.
Which references and qualifications should you verify?
Speak directly with owners and design professionals from comparable projects, preferably those involving the proposed team members. A reference check should test the firm’s claims with concrete questions about forecasting, communication, staffing, quality, safety, changes, and closeout.
Ask references:
- How accurately and consistently did the team communicate cost and schedule forecasts?
- Did the key staff remain involved, and did the team respond promptly when decisions or problems arose?
- How did the firm handle changes, quality concerns, and coordination with the owner and design professionals?
- Were there claims or disputes? If so, how were they handled?
- Was safety managed effectively, and did the firm complete the required handover work?
- Would you hire the proposed team again for a comparable project, and why?
Verify that the firm can meet the project’s insurance and bonding requirements with appropriate advisers, and check licensing requirements in the project jurisdiction. Ask about current workload and staffing capacity, not just past project volume. A capable firm may still be a poor fit if its proposed leaders are unavailable or its relevant experience rests on staff who will not participate.
What should the construction management contract spell out?
The agreement should translate the selected delivery method and proposal into specific duties, authority, compensation, and risk allocation. Do not rely on “CM-at-Risk,” “agency CM,” or “guaranteed maximum price” as a complete description of what the owner and firm have agreed to do.
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For either model, identify the scope of services, deliverables, staffing commitments, communication and approval process, schedule responsibilities, insurance, claims and dispute process, termination rights, and closeout duties. State who may legally bind the owner and what authority the CM has to direct, approve, or commit to work.
If the arrangement is CM-at-Risk, also specify who contracts with trade partners, how trade procurement works, what costs are reimbursable, and how self-performed work is treated. Define the construction fee, general conditions, allowances, contingencies, markups, and exclusions. If the agreement includes a guaranteed maximum price (GMP), state when it will be established, the documents and assumptions on which it is based, what it includes and excludes, how contingencies are controlled, and how savings are treated.
A GMP does not by itself explain every owner risk or establish that every potential project cost is covered. The practical certainty of the arrangement depends on the contract’s scope, assumptions, exclusions, contingencies, change procedures, and the responsibilities each party retains. Ask project-specific legal and insurance advisers to review the proposed terms before execution. AIA and AGC note that delivery terminology can be used in different ways, so the written agreement must make the actual allocation understandable.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should closeout be included in the scope?
Define closeout deliverables in the solicitation and agreement, not as an informal expectation near the end of construction. Specify what the owner will receive, in what format, by when, and how completion will be accepted.
Depending on the project, the closeout plan may include commissioning coordination, punch-list tracking, as-built drawings or records, operations and maintenance manuals, warranties, training materials, spare or attic-stock materials, and vendor and trade contact information. Identify who prepares each item, who reviews it, and what the owner needs before final acceptance or handover. The AGC/NASFA selection guidance recommends making handover requirements part of the procurement documents so firms can plan and price the work from the outset.
What are the most common hiring mistakes?
The most avoidable problems arise when owners compare firms before defining the role, treat unlike fee proposals as equivalent, or leave authority and risk to be settled after selection.
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- Choosing by title alone: Similar labels can describe different responsibilities. Specify whether the firm is an adviser or may become the constructor, and define authority in the agreement.
- Selecting a delivery method by habit: Choose based on project requirements, procurement rules, desired control, schedule, and the value of early input—not on a claim that one method is always best.
- Scoring the brand rather than the assigned team: Request named staff, confirm their roles in cited projects, and verify their availability.
- Ranking fees without normalizing scope: Compare staffing, reimbursables, contingencies, markups, exclusions, and deliverables on a common basis.
- Assuming a GMP removes all uncertainty: Read the assumptions, exclusions, contingency rules, and change procedures; clarify which costs and risks remain with the owner.
- Leaving closeout vague: List the records, manuals, warranties, training, and other handover materials with formats and deadlines.
- Ignoring local requirements: Confirm jurisdiction-specific licensing, public procurement, insurance, bonding, and contract rules before solicitation.
For general U.S. guidance, AIA/AGC, CMAA, and AGC/NASFA offer useful frameworks, but the sources do not establish a universal fee rate, required shortlist size, or best delivery method. Those depend on the project and its jurisdiction.
Frequently Asked Questions
Should I hire the construction manager before selecting an architect?
Not necessarily. The useful timing depends on the delivery method and the project’s needs; a CM-at-Risk is often engaged during design so it can contribute preconstruction input, but the owner should define how that relationship fits the architect’s scope and authority.
Does a construction manager replace the owner’s project manager?
No. The owner should designate an owner-side project manager who can make timely decisions and remain involved through design, procurement, construction, and closeout. The CM’s responsibilities complement defined owner and design-team responsibilities rather than eliminating them.
Does a GMP mean the owner can never pay more than that amount?
The label alone cannot answer that. The agreement’s scope, assumptions, exclusions, contingencies, and change procedures determine what the price commitment covers and what circumstances may create additional owner costs.
What should a public owner check before issuing an RFQ?
Confirm the procurement process, licensing requirements, and applicable insurance, bonding, and contract rules in the project jurisdiction before issuing documents. General U.S. industry guidance does not override statutes or agency-specific procedures.
