In the construction management at-risk contracting model, the contractor provides the client with a guaranteed maximum price and assumes responsibility for all aspects of the project. CM at-risk can be a rewarding business model in many ways. However, if you are undertaking a project of this nature, you should be sure to cover all of your bases.
As the name would suggest, construction management at-risk projects carry inherent hazards. The major reason for this is the guaranteed maximum price that the contractor provides to the client. Because you are providing your client with a guarantee, you are liable if you do not deliver. Make sure that your contract is carefully written and agreed upon so that you do not incur more risk than is necessary.
Due to the nature of CM at-risk projects, not all insurance providers are willing to cover them. You should look for an insurance provider that will not only cover your project, but will also match you with the best plan for your projects specific needs. Having secure coverage will help you do your best work. If your project does meet with mishaps, having good insurance will help your company stay afloat.
The construction management at-risk model expedites the construction process and facilitates strong relationships between contractors and clients. When you have taken care of the insurance details, you can wholeheartedly throw yourself into the development of something new.