The CM & Owner-Builder
Process at Richardson RCM
A single-source design and construction partnership built on open-book transparency, tiered shared-savings, and Guaranteed Maximum Price discipline — purpose-built for Owners who want control without the burden of being their own General Contractor.
Design-Build with Agency CM
Under our hybrid Design-Build / Agency Construction Management model, the Owner serves as the legal builder of record and the contracting party for every design professional, trade contractor, vendor, and supplier. Richardson RCM is engaged through a single Design-Build Construction Management Services Agreement (DB-CMSA) to act as the Owner's professional representative across both design and construction.
Privity of Contract
The Owner — not RCM — holds and signs every design contract, subcontract, purchase order, and material agreement. Full legal control stays with you.
Single-Source Accountability
RCM is responsible for both design coordination and construction execution. One point of contact for the entire project lifecycle.
Insurance Structure
The Owner maintains General Liability and Builder's Risk. Each subcontractor carries their own GL, Auto, and Workers' Compensation coverage.
Cash Flow & Pay Apps
RCM prepares pay applications, certifies work in place, collects lien waivers, and forwards approved packages to the Owner for direct payment.
Aligned Compensation
RCM is paid a negotiated CM fee plus reimbursable general conditions — never a markup on construction cost. The 70/30 weighted shared-savings provides the performance incentive.
Fast-Track Delivery
Overlapping design and procurement compress the schedule by 15–25% versus traditional design-bid-build, with no markup on long-lead equipment.
Who Does What
A clear division of responsibility between the Owner-Builder of record and Richardson RCM as Design-Builder & Construction Manager throughout the project lifecycle.
| Owner / Owner-Builder | Richardson Construction Management |
|---|---|
| Holds legal status as Owner-Builder of record with the AHJ. | Acts as Owner's design-build agent and CM; never holds AHJ permits as GC. |
| Executes the DB-CMSA with RCM and all downstream contracts. | Drafts, negotiates, and recommends all design, subcontract, and vendor agreements. |
| Funds project; secures construction financing; opens project bank account. | Provides cost forecasts, draw schedules, and lender reporting packages. |
| Procures and pays premiums for project GL and Builder's Risk insurance. | Verifies all subcontractor COIs, additional-insured endorsements, and waivers. |
| Issues all payments — checks or ACH — directly to designers, subs, and suppliers. | Prepares pay applications, certifies work in place, collects lien waivers, and submits to Owner. |
| Reviews and approves design milestones, GMP, change orders, and substantial completion. | Manages the design team; runs design reviews, constructability, value engineering, and GMP development. |
| Holds title to all materials, equipment, and the completed improvements. | Maintains site security, material tracking, stored-materials documentation, and warranty logs. |
| Receives tiered shared-savings distribution upon final close-out (75 / 70 / 65% across tiers). | Earns tiered shared-savings incentive (25 / 30 / 35% across tiers) based on cost below GMP. |
Phase by Phase
Every project executes through one design phase plus six construction stages, with formal Owner approval gates between each. RCM provides defined deliverables and milestone reporting at every stage.
Design & Engineering
RCM leads the design team through schematic, design-development, and construction documents. Includes geotechnical, survey, Phase I ESA, AHJ permit submittal, and GMP development. Approval Gate: 100% CDs, Building Permit, GMP Proposal.
Pre-Construction
Minimum three qualified bidders per scope. Award recommendations and subcontracts prepared in Owner's name. Approval Gate: Fully executed subcontracts representing 100% of GMP scope; Notice to Proceed issued.
Construction & Field Execution
Full-time on-site supervision, project administration, safety oversight, and quality control. Open-book accounting throughout, with monthly pay applications and lien waiver tracking.
Commissioning, Closeout & Shared-Savings Reconciliation
Commissioning of fuel systems, leak detection, POS integration, refrigeration, HVAC, and fire suppression. Key Milestones: Certificate of Occupancy, Substantial Completion, Grand Opening, Project Closeout & Shared-Savings Reconciliation.
The Financial Keystone
The GMP is the not-to-exceed total project price and the baseline against which the Shared-Savings Incentive is calculated. RCM develops and submits the GMP Proposal upon completion of 90–100% Construction Documents and competitive subcontractor pricing.
Cost of the Work
All subcontractor and supplier amounts under executed contracts, materials, freight, sales tax, permits, and testing.
Design & Engineering
Architectural, civil, structural, MEP, fuel-system, fire-protection, geotechnical, survey, and ESA fees — separately contracted.
General Conditions
Reimbursable field costs — Key Staff salaries, temporary utilities, jobsite trailer, dumpsters, security, small tools.
Owner Contingency
3% of Cost of Work, reserved exclusively for Owner-directed changes via Change Order.
Fixed OH&P
2.00% of Cost of Work covering home-office overhead and profit. Not adjustable and not subject to renegotiation at GMP execution.
30 / 60 / 100% Estimating
Subcontractor-backed estimates at each design milestone, with variance reconciliation and value-engineering log presented to Owner.
A 70/30 Weighted Average — By Design
Project savings achieved below the Approved GMP at final close-out are shared on a three-tier structure indexed to the size of savings as a percentage of GMP. The tier rates are calibrated to deliver an overall 70% Owner / 30% RCM weighted average across the full savings band — structurally aligning RCM's financial interest with the Owner's bottom line.
| Savings Tier (% of Approved GMP) | Owner Share | RCM Share |
|---|---|---|
| First 0% – 3% of GMP | 75% | 25% |
| 3% – 6% of GMP | 70% | 30% |
| Above 6% of GMP | 65% | 35% |
| Weighted Average (Full 0 – 9%+ Band) | 70% | 30% |
Where Final Actual Project Cost exceeds the approved GMP for in-scope reasons, RCM absorbs the overrun against its CM Fee up to the full value of the fee. The Owner is not liable beyond the approved GMP except for Owner-directed scope changes, force majeure, or differing site conditions.
Why Owners Choose This Model
Single-Source Accountability
One contracted partner — RCM — accountable for design, procurement, and construction execution from concept through commissioning.
Full Cost Transparency
Open-book accounting across design, procurement, and construction. No hidden GC markup. Every invoice visible to the Owner.
Aligned Incentives
The tiered 70/30 weighted-average shared-savings structure rewards discipline and competitive procurement at every stage.
Accelerated Delivery
Overlapping design and procurement compress the schedule by 15–25% versus traditional design-bid-build.
Capital Discipline
The GMP ceiling protects against unbounded cost growth. RCM absorbs in-scope overruns against its CM fee.
Scalable & Flexible
Disciplined unit-pricing supports footprint variations and program adjustments without renegotiating the underlying delivery model.
Building Visions. Managing Success.
Direct all upgrade and pricing inquiries to our CEO. We'll walk you through how the model would apply to your project — and what your GMP and shared-savings structure could look like.
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