Choosing the right project delivery method is one of the most consequential decisions a developer or property owner makes — often before a single design drawing exists. The delivery method shapes who carries the risk, how costs are controlled, how much influence you have over design, and whether your schedule goals are achievable.
The Four Main Delivery Methods
Stipulated Price (Lump Sum)
The owner commissions a full set of construction documents, then sends those to general contractors for competitive bids. The winning contractor agrees to deliver the finished project for a fixed, predetermined price. Pros: maximum price certainty, competitive bidding. Cons: design must be essentially complete before tendering, changes are expensive, adversarial dynamics can emerge when unforeseen conditions arise.
Design-Build (DB)
A single entity is responsible for both design and construction. Pros: single point of accountability, faster overall schedule, designer and contractor are on the same team. Cons: the owner cedes significant control over design decisions, quality trade-offs can occur when the design-builder optimizes for their own cost efficiency, comparing bids is harder.
Construction Management (CM)
The owner hires a construction manager early in the design phase as an advisor and project administrator. Trades are contracted directly between the owner and individual subcontractors, with the CM managing the process. The CM is paid a management fee. Pros: full cost transparency, competitive trade tendering, phased procurement, owner retains control over design decisions. Cons: owner carries cost risk, requires an engaged client.
CM at Risk (CMAR) / Guaranteed Maximum Price (GMP)
The construction manager is involved early like a traditional CM, but at a defined point — typically when design is 60–80% complete — the CM provides a Guaranteed Maximum Price. If costs exceed the GMP, the CM absorbs the overage. If costs come in below the GMP, savings are typically shared. Pros: combines CM transparency with cost certainty, aligns CM’s financial incentives with efficient delivery. Cons: the GMP is only as reliable as the completeness of the design when it is set.
Comparison at a Glance
| Factor | Stipulated Price | Design-Build | CM | CMAR / GMP |
|---|---|---|---|---|
| Cost certainty | High (at award) | High (at award) | Low (at outset) | High (at GMP) |
| Owner design control | Low (post-bid) | Low | High | High (pre-GMP) |
| Schedule potential | Moderate | Fast | Fast (phased) | Fast (phased) |
| Cost transparency | Low | Low | High | High |
| Owner risk exposure | Low | Low | High | Moderate |
| Trade competition | Moderate (GC selects) | Low | High | High |
How to Choose
Project size and complexity: Larger, more complex projects benefit from the transparency and flexibility of CM or CMAR. Stipulated price works well for simpler, clearly defined scopes.
Owner sophistication and engagement: CM and CMAR require an owner prepared to participate in decisions and respond quickly. If you want to hand the project off and receive keys at the end, Design-Build or Stipulated Price is a better fit.
Schedule priority: Phased procurement under a CM or CMAR model allows early trade packages to be tendered and awarded while design continues. Stipulated Price requires near-complete documents before any tendering can begin.
Budget certainty vs. flexibility: If you need to know your maximum exposure before committing, Stipulated Price or CMAR with a well-defined GMP provides that certainty. Open-book CM typically produces the lowest overall project cost when procurement is managed well.
How Team Construction Management Works With You
Team Construction Management has been delivering projects across Kelowna and the Okanagan for over 45 years. In that time, we have worked with every major delivery method — matching the right approach to each project’s conditions rather than defaulting to a single model.
Our TEAM Process is specifically designed for Construction Management and CMAR delivery. We bring owners in early, run competitive trade procurement, and manage every package with the same rigour we would apply to our own money.
Contact Team Construction Management to discuss which delivery model fits your next project — there’s no obligation, just a straightforward conversation about your project goals.