California Multi-Prime Construction Management Services Agreement
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FAQ
A prime contract is a legal agreement between a general contractor and a federal agency that procures the latter's services for the former. The contract identifies who the contract parties are, what their mutual goals are, and how long their relationship will last.
The Construction Manager at Risk (CMAR) is a delivery method which entails a commitment by the Construction Manager (CM) to deliver the project within a Guaranteed Maximum Price (GMP) which is based on the construction documents and specifications at the time of the GMP plus any reasonably inferred items or tasks.
What is it? Multi-prime contracting is a variation of design-bid-build in which the STA utilizes multiple contractors to construct a project. In this setup, the STA has several contracts with different contractors that perform specific aspects of the construction.
In the multi-prime setting, the owner takes over the project's management and coordination efforts. The owner may engage a construction manager to assist with the project's schedule, budget, and coordination efforts during the construction process.
Disadvantages of the Multiple Prime Contracts system The final cost of the project is not known until the final prime contract is procured. There have been numerous cases where this method did not work well due to the absence of overall authority and coordination once construction is underway.
Limitations? Due to the fact that many contractors are a part of multi-prime contracting, the major disadvantage to this type of delivery method is the increased coordination in the development of the separate bidding and contract packages for each separate prime contractor.
Multi-Prime Contract (CMMP) Under a multi-prime contract, the owner has more financial control over a project. Further, the construction manager assumes no financial risk. With the CMMP delivery method, the owner chooses the contractors based on several qualifications and not just project price.
4 Benefits of Having a Single Prime Contractor Single Point of Contact. Using multiple prime contractors means that the burden of project management falls to a leader in the customer organization.Single Point of Accountability.Cost-Effective Procurement and Management.