Which project delivery method assumes that the contractor is at risk?

The project delivery method that assumes the contractor is at risk is the CM at Risk approach. In this model, the construction manager (CM) takes on a significant portion of the project risk by committing to deliver the project within a guaranteed maximum price (GMP). This means that the CM is responsible for managing the construction process and has financial accountability for cost overruns, ensuring that the project is completed within budget.

This approach allows for early contractor involvement during the design phase, which can lead to enhanced collaboration and efficiencies, as the contractor can provide valuable input on cost-effective materials and construction methods. The risk transfer to the contractor encourages them to control costs and coordinate effectively, leading to timely project delivery.

In contrast, the other delivery methods operate differently regarding risk allocation, where the contractor’s financial responsibility may not be as defined or where the risk is more evenly shared. Understanding these distinctions helps in selecting the appropriate method based on the project's specific needs and constraints.