Are you considering an AIA Construction Management at Risk Contract for your next project? If so, it is important to understand the intricacies of this type of contract and how it can impact your project.

First, let`s define what an AIA Construction Management at Risk Contract is. It is a contractual agreement between an owner, a construction manager, and a contractor. The three parties work together as a team throughout the project, with the construction manager serving as the owner`s representative. The construction manager is responsible for overseeing the construction process and ensuring that the project is completed on time, within budget, and to the owner`s satisfaction.

One of the key benefits of an AIA Construction Management at Risk Contract is that it allows the owner to engage the construction manager early in the project. This means that the construction manager can provide input and guidance during the design phase, which can help identify potential issues and minimize the risk of delays or cost overruns later in the project.

Another benefit is that the construction manager is responsible for managing the subcontractors and suppliers, which can help streamline the construction process. This can reduce the burden on the owner, who would otherwise have to manage multiple contracts and relationships with different parties.

However, there are also potential drawbacks to consider. One is that the construction manager assumes a greater degree of risk than they would in a traditional contract. They are responsible for guaranteeing the cost of the project, which includes absorbing any cost overruns. This can make the construction manager more cautious and risk-averse, which could impact the project`s scope, schedule, or quality.

Another potential issue is that the construction manager may have a conflict of interest. They are hired by the owner and are responsible for representing the owner`s interests, but they also have a contractual relationship with the contractor. This could lead to a perceived bias towards the contractor, which could erode trust and collaboration between the parties.

In conclusion, an AIA Construction Management at Risk Contract can be a viable option for certain projects, but it is important to carefully weigh the benefits and drawbacks before proceeding. If you are considering this type of contract, be sure to work with an experienced construction manager who can provide guidance and support throughout the project.