Construction management (CM)

Terminology status: EstablishedCMCMAR

Also: Construction manager at risk, CM for services, CM for services and construction, Construction manager as agent

Quick definition: A project delivery method in which the owner engages a construction manager early to advise on cost, schedule and constructability during design, and to manage the procurement and execution of the work through trade contracts.

Explanation

Technical explanation

Two main variants exist, and the difference matters for risk. In CM for services (often called CM as agent or advisor), trade contracts are typically held by the owner and the construction manager is paid a fee to manage them; the owner keeps the cost risk. In CM for services and construction (often called CM at risk), the construction manager holds the trade contracts and may commit to a price, carrying more of the cost risk. In Canada these models are set out in CCDC 5A (for services) and CCDC 5B (for services and construction), both reissued in 2025, with CCDC 17 used for trade contracts on CM projects.

Because trade packages can be tendered while later design packages are still in progress, CM is often used for fast-track and phased projects.

Practical example

A university hires a construction manager under a CM-for-services contract at schematic design. The CM prices design options, runs constructability reviews and tenders early packages (excavation, shoring, structural steel) before interior design is complete, saving four months on the overall programme.

Why it matters

CM gives owners construction expertise during design and earlier starts on site, but the owner must manage more trade-contract risk under the services variant.

Common confusion

The phrase "construction management" also names the professional discipline of managing construction. On this page it means the delivery method. Do not confuse CM at risk with Design-build, where one party is also responsible for the design.

Standards and references

  1. CCDC contract documents (catalogue). Canadian Construction Documents Committee (CCDC).Widely accepted professional interpretation
    Supports: CCDC 5A (for services), CCDC 5B (for services and construction) 2025 editions; CCDC 17 trade contracts on CM projects · Status: Catalogue lists CCDC 2 (2020), 3 (2016), 4 (2023), 5A/5B (2025), 11 (2019), 14/15 (2026), 17 (2025), 18 (2023), 30 (2025), 31 (2020), 32/33 (2026).
  2. Compare and Contract: CCDC 2 and CCDC 5A. Ontario Bar Association, 2023.Widely accepted professional interpretation
    Supports: CCDC 2 and CCDC 5A represent very different delivery methods

VDC Stack.io writes its own explanations and does not reproduce copyrighted standards text. Consult the cited standard for normative wording.

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VDC Stack.io. (2026). Construction management (CM). In VDC Stack.io Knowledge Dictionary. Retrieved from https://vdcstack.io/dictionary/construction-management-delivery/