Let's break down the question and each option: **Question:** The role of the Construction Manager (CM) changes from **Agent for the Owner** to **CM at Risk** when? **Background:** - **CM as Agent:** The CM acts as an advisor to the owner, managing the project on the owner’s behalf, but does **not assume the construction risk**. - **CM at Risk (CMAR):** The CM not only manages the project, but also **guarantees the price and schedule** (often through a GMP - Guaranteed Maximum Price), and **assumes the performance risk** of construction. Now, let's analyze each option: --- **a. Upon receipt of an Executed Contract Agreement to perform CM Services** - *Explanation*: This is just the agreement to act as a CM. It does not necessarily mean the CM is taking on risk; it could be for advisory/agency services. - *Conclusion*: NOT the point where CM becomes "at risk". --- **b. The Construction Phase begins** - *Explanation*: While the construction phase is when actual building starts, the CM’s risk status depends on the nature of their contract, not simply the phase. - *Conclusion*: Construction starting doesn’t automatically make a CM “at risk”. --- **c. The CM assigns risk to contractors performing the work and accepts the responsibility for managing the construction** - *Explanation*: Assigning risk to contractors is typical in many delivery methods, including traditional CM agency. The key element of **CM at Risk** is that **the CM itself accepts performance risk** (guaranteed price, schedule, quality, etc.). - *Conclusion*: This is close, but the CM at Risk means the CM itself accepts overall project risk, not just passes it to others. --- **d. The CM accepts the performance of construction for a fixed price** - *Explanation*: This is the defining characteristic of **CM at Risk**—the CM guarantees construction for a set sum (often a GMP or fixed price), thereby **assuming the construction risk**. - *Conclusion*: This is the correct answer. --- ## **Final Answer** **d. The CM accepts the performance of construction for a fixed price** **Explanation:** The CM changes from being an agent (advisor with no risk) to "CM at Risk" **when the CM contractually accepts the responsibility for construction performance (cost, time, quality) for a guaranteed or fixed price.** This is when the CM assumes the construction risk, instead of just managing the project as the owner's representative.