In this blog, we’ll break down what the new laws mean, how they affect your project budgets, and how W. Gohman can help you turn these changes into predictable outcomes.
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What are Minnesota’s recent legislative changes to CM at Risk?
Minnesota’s updated laws expand the use of CMAR, allowing more municipalities and organizations to benefit from this project delivery method. Under CMAR, the construction manager is selected earlier through a qualifications and proposal process (RFQ/RFP) and works alongside the architect during design.
One key change is the ability to set a Guaranteed Maximum Price (GMP) contract. This creates a cap on the overall project cost, giving you greater budget clarity and protecting against runaway expenses.
How do these changes impact construction budgets?
For business owners, the updates open the door to more predictable financial outcomes:
- Budget predictability through GMP – You will know your maximum financial exposure from the start.
- Early contractor involvement – Risks are identified and addressed before the design is finalized.
- Reduced risk of overruns – Collaborative planning prevents surprises that typically drive costs higher.
These changes give you a clearer path forward, helping you invest in your building project with confidence.
What should owners watch for in CMAR contracts?
Even with stronger cost protection, CMAR contracts come with details worth understanding. Pay close attention to:
- Scope of GMP coverage – Verify exactly which costs fall under the cap.
- Transparent cost estimating – Look for open-book pricing and clear line items.
- Contingency management – Know how any unused contingency funds will be applied or returned.
Asking the right questions upfront ensures you will gain the full benefits of the CMAR approach.
How can the right CM at Risk partner help you control costs?
The legislation creates opportunities, but your results depend on your contractor. The right CMAR partner will:
- Guide you through Minnesota’s updated procurement process.
- Provide realistic cost estimates and scheduling.
- Facilitate collaboration between you, your architect, and subcontractors.
With the right team, you will minimize disruption, maintain transparency, and keep your project running smoothly.
What makes W. Gohman the right CM at Risk partner for your next project?
At W. Gohman, we have been delivering quality construction across Minnesota for decades. Our CMAR approach combines craftsmanship with accountability, helping businesses like yours get the most out of new legislation.
With us, you will benefit from:
- On-time, on-budget delivery.
- A transparent, collaborative process.
- A seamless transition from design through construction.
Minnesota’s CMAR updates put more control in your hands, but only if you have the right partner. W. Gohman makes sure you turn legislation into lasting value.
Frequently Asked Questions
How does CM at Risk differ from traditional design-bid-build in Minnesota?
In design-bid-build, contractors are not involved until after design is complete, which can lead to higher costs. CMAR brings contractors in earlier to guide decisions and manage budgets proactively.
Can different types of facilities in Minnesota now use CMAR for their projects?
Yes. With the legislative changes, more municipalities and organizations can use CMAR, making it a strong option for public and private projects alike.
Does a guaranteed maximum price (GMP) really protect owners from budget overruns?
Yes. With a GMP, contractors are responsible for costs beyond the cap unless the project scope changes. This gives owners greater peace of mind.