In Iowa, Design-Bid-Build (D-B-B) and Construction Manager – Agent (CMa) are the two other permitted delivery methods for publicly funded construction projects.

In a traditional Design-Bid-Build delivery, the Owner hires a designer to complete the plans for the project, then bids the project to contractors, typically awarding to the lowest responsible bidder. One contract is held between the Owner and the prime contractor, with any subcontracts being held by the prime contractor.

Both CMAR and CMa bring a construction manager on board during design, so the Owner benefits from constructability input, budget tracking, and scheduling expertise before design is finalized. Selection of a CMa or CMAR is based on qualifications, not just the lowest price. Iowa Code Chapter 26A lays out the requirements for selection of a CMAR, whereas there are no statewide rules for hiring a CMa.

Through CMAR delivery, a guaranteed maximum price (GMP) contract for the work is established between the Owner and the construction manager, with competitively bid trade package contracts held by the construction manager. The CMAR is also allowed to submit a bid to self-perform any of the trade packages it is qualified to perform. Through CMa delivery, the construction manager is an adviser to the Owner and does not hold any contracts for the work itself. Separate contracts are held between each bid package contractor and the Owner.

A fourth option – Design-Build – is no longer allowed for publicly funded construction projects in Iowa.

The process generally moves through three required stages: Notice of Intent, Request for Qualifications, and Request for Proposals.

1. Notice of Intent (NOI): The governmental entity hiring the CMAR must publicly disclose its intent to enter into a guaranteed maximum price contract and its selection criteria at least fourteen days prior to publishing a request for statements of qualifications.
2. Request for Qualifications (RFQ): The entity must issue a request for statements of qualifications, which include general information on the project site, project scope, schedule, selection criteria, and the time and place for receipt of statements of qualifications. Selection criteria and general information included in the request for statements of qualifications may be developed in coordination with the engineer, landscape architect, or architect selected or designated by the governmental entity. RFQ responses should be due no less than 13 days after issuing the RFQ.
3. Request for Proposals (RFP): The entity issues a request for proposals to each contractor who met the qualifications, including selection and evaluation criteria. Each contractor issued an RFP is permitted to submit a proposal and each proposal submitted must include the construction manager-at-risk’s proposed fees. The entity then selects the construction manager-at-risk that submits the proposal that offers the best value for the governmental entity based on the published selection criteria and on its ranking evaluation.

Beyond the requirements of the process, we recommend putting more thought and effort into building the process so the needs of your organization are met in selecting your CMAR. Visit our CMAR Resources page to learn more about our recommended approach.

Through the pre-construction process, the CMAR – in collaboration with the Owner and design team – will develop packages of trade work and materials for the project. For packages with an estimated cost above the competitive bidding threshold, the construction manager-at-risk must advertise for competitive bids, receive bids, prepare bid analyses, and award contracts to qualified firms.

Prior to bidding the project, the CMAR must prequalify trade contractors. The CMAR will publish a request for statement of qualifications and receive responses from trade contractors and/or material suppliers interested in bidding on one or more of the trade packages, and will use objective qualifying criteria to prequalify or disqualify contractors. Prequalified contractors are then invited to submit a bid for the relevant trade packages. This prequalification requirement is an important step in building a qualified project team to deliver the project for the Owner.

Yes, a construction manager-at-risk is allowed to self-perform work on CMAR projects. Prior to bidding, the CMAR must notify the Owner in writing that it intends to submit a bid for one or more of the trade packages that are above the competitive bidding threshold, before receiving bids from prequalified trade contractors. The CMAR then instructs all bidders for those bid packages to submit bids directly to the Owner on bid day rather than to the CMAR. While the Owner is obligated to award to the lowest bid for each trade package, the Owner can award a trade package to the CMAR if it is deemed to be in the best interest of the Owner and the project.

CMAR delivery offers many benefits that may be appealing to a school district, city, university or other governmental entity. It allows you to select your construction partner based on qualifications, not the lowest bid; it allows you to build an integrated design and construction team during design; and it allows you to manage risk through a guaranteed maximum price (GMP) contract with the CMAR. Despite these and other benefits, it may not fit your project. It is a complex and drawn-out selection process compared to CMa or design-bid-build, and can add unnecessary steps to smaller and less complex construction projects. 

Ultimately the details and goals of your project will impact whether CMAR, CMa, or design-bid-build is the right delivery approach for your project.