A delivery model where a construction manager guarantees a maximum project cost and takes on financial risk if it's exceeded. Subcontractors are hired by the CM, not the owner, making the CM your direct client and contract holder. Your scope, payments, and change orders all flow through the CM.
Construction Manager At Risk
Related Terms
Thermal In-Situ
IndustryA method of extracting heavy oil or bitumen by injecting steam underground to heat and mobilise the resource. Common techniques include SAGD (Steam Assisted Gravity Drainage) and CSS (Cyclic Steam Stimulation). Subcontractors support these operations through facility construction, pipefitting, instrumentation, and ongoing maintenance work.
Surface Miner
IndustryA large self-propelled machine that cuts, crushes, and loads material in a single pass without blasting. Subcontractors operating surface miners must hold specialised equipment certifications and follow strict site safety protocols. Common in oil sands and open-pit construction projects across Western Canada.
Spud Date
IndustryThe date when drilling begins on a new well. Marks the start of drilling operations.
Cold Milling
IndustryA surface removal process where a rotating drum grinds down asphalt or concrete without heat. Subcontractors use it for road rehabilitation, pad preparation, and surface levelling on well sites or construction projects. Reclaimed material is often reused, reducing disposal costs.
Caustic Service
IndustryWork involving equipment or piping that handles highly alkaline chemicals, such as sodium hydroxide. Subcontractors must use compatible materials and certified personnel to avoid rapid corrosion and serious chemical burns. Specialised PPE and handling procedures are typically required by the client's safety plan.
Npv10 (net Present Value At 10% Discount Rate)
IndustryA method operators use to value oil and gas reserves by discounting future cash flows at 10% annually. Higher NPV10 signals a healthier client who can fund long-term projects and honour contracts. Subcontractors can use it to gauge whether a prospect client's asset base justifies pursuing work with them.
Latest Industry News
Dayton Taps Shook Construction for $350M PFAS Water Plant Overhaul
Dayton, Ohio has hired Shook Construction as construction manager at risk on a $350 million PFAS removal facility at its Ottawa Water Treatment Plant, while suing Wright-Patterson Air Force Base to recover costs, ENR reports.
20 days agoIndustryMcCarthy Wraps $74M Lawrence Wastewater Upgrade Using CMAR Delivery
McCarthy Building Cos. completed a $74.3 million overhaul of Lawrence, Kansas' Kansas River Wastewater Treatment Plant, marking the city's first use of construction manager at risk on a wastewater job, Construction Dive reports.
1 month agoIndustryContinental Resources Buys FireBird Energy in Permian Expansion
Continental Resources will acquire FireBird Energy II, adding 32,000 boed and 54,000 net acres in the Midland basin as it deepens its Permian footprint.
20 hours agoIndustryPermian Pipeline Gains May Hit a Processing Wall by 2028
New long-haul pipelines could solve Permian gas takeaway by 2028, but NGI reporting shows gas treating capacity for CO2, nitrogen and sour gas may lag behind, risking localized curtailments for midstream contractors.
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