Construction Manager at Risk Continued

Thursday, May 5th, 2016

Construction Manager at Risk – Part 2


There is always learning when studying requests for proposals (RFP). The construction manager at risk service detail can be found, as an example, in the city of New Orleans RFP 8910-01660. This is in respect of work at Louis Armstrong New Orleans International Airport. The buyer for the airport project was fixed at $546.5 million. Essentially, the cm-at-risk facet involved three stages;

  1. Development of the airport projects components
  2. Construction of the north terminal
  3. Southside terminal demolition and build out

A failure to complete on time would result in the payment of the liquidated damages at approximately $11,000 per day.

Re RFP included requests for:

  • Business organisation and history of proposer. This required “provide a narrative on the history of the proposes including years in business and the depth of resources to provide cm-at-risk services. Explain the size of your company the legal entity structure, and office locations, with particular emphasis regarding the key personnel and depth of resources available at any and all offices in the city of New Orleans, as within a one hour in person response time to the airport.
  • Insurance cover including general liability $5,000,000; automobile liability (on airport) $10,000,000; errors and omissions $10,000,000; Commercial Crime/Fraud Prevention Policy $5,000,000
  • Performance and payment bonds in amounts sufficient to cover 100% of the airport project budget.
  • Key Personnel for construction namely construction manager; project maager; general superintendent; chief estimator; chief scheduler and all other key personnel deemed necessary.
  • Prior experience with airport construction projects providing the following information:
Ø    Name of projects
Ø    General description of projects
Ø    Dates of projects
Ø    Location of projects
Ø    Services performed on project
Ø    Original budget for the project
Ø    Final total cost of the project
Ø    Total number and dollar value of change orders
Ø    Original scheduled delivery date of projects
Ø    Entity with which proposer contracted
Ø    Name of the chief architects
Ø    Key personnel who worked on the referenced projects


  • A detailed narrative of the management approach identifying unique experience, qualifications, techniques and approaches that will best achieve the airport projects objectives.

The above questions if supported by the buyers’ diligence, will expose the contractors who would be incapable of delivering the cm-at-risk services. In part 3 of this briefing we will explore a sample of the contract provisions.

Part 1 can be found here