Policy 7132 – Selection of Construction Manager At Risk

Among several construction methods available to the District is the Construction Manager at
Risk method. This method will only be considered for projects when the cost is in excess of
three million dollars. As opposed to the traditional construction manager method, a
“construction manager at risk” assumes the risk for the construction project at a contracted price.
In essence, under this method, the construction manager serves as a general contractor and as a
consultant to the District regarding all phases of construction during and after the design of the
project. If the cost of project exceeds the contract price, the construction manager at risk is
responsible for the excess cost. Conversely, where the actual project cost is less than the contract
price, the construction manager at risk receives the difference.

The District will evaluate each construction project to determine which construction method will
be used.