What is special about the estimating process in CMAR?

• A. It uses target pricing
• B. It is a closed-book
• C. It uses fixed-price contracts
• D. It is an open-book

Answer: (D)

In CMAR, the estimating process is open-book, meaning the contractor shares detailed cost data with the owner during design. This transparency allows both parties to see exact line-item costs for labor, materials, subcontractors, and indirects, making it possible to compare estimates, challenge assumptions, and make informed value-engineering decisions early in the project. Because CMAR involves the contractor early in design, open-book cost reporting helps align expectations and supports establishing a GMP or target price based on real cost information. This approach contrasts with a closed-book method where costs are hidden, and with fixed-price contracts that lock in a price rather than exposing the underlying estimates. While other pricing strategies may use target costs, the defining feature of CMAR’s estimating is the open sharing of cost data.