Construction
Management Construction Management is just that, the management of
all aspects of planning and construction for any given
project.
Construction Management is defined as the management activities
that are over and above the normal architectural and engineering services
conducted during the pre-design, design and construction phases of a project
that contribute to the control of cost and time.
There are three basic
forms of Construction Management:
Pure Construction Management -
Where the Construction Manager acts as an advisor to the Owner with no General
Contractor involved. |
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When an Owner uses this approach with no General Contractor, the
Construction Manager is employed on a fee basis as an advisor to assist the
Owner in acting as their own general contractor. The Owner signs all contracts
with Subcontractors and all Purchase Orders with Suppliers.
This
approach works well when the Owner is knowledgeable and experienced with
construction projects. |
Advantages: |
 |
The Owner gets pricing information early on and as the
Project develops. |
 |
The Owner can take advantage of special services such as
preliminary feasibility studies, value engineering and life cycle cost
analysis. A good Construction Manager can typically earn their fee by reducing
overall costs during the planning stage. |
 |
The Project duration can be shortened because the actual
construction can begin before the entire design has been completed. |
 |
Design fees are kept to a minimum and are determined
from the beginning of the Project. |
 |
The Construction Manager's fee is established from the
beginning of the Project. |
 |
There is no General Contractor mark-up of
Subcontractors. |
 |
Quality is stressed over lowest price. |
Disadvantages: |
 |
The Owner assumes more risk than for other project
delivery methods. |
 |
The Owner must sign contracts with numerous
Subcontracting entities. |
 |
The Owner needs to be Construction
knowledgeable. |
|
Construction Management - Where the Construction
Manager acts as an advisor with a General Contractor involved. |
 |
In this method of Project delivery the Owner selects a
Construction Manager in addition to the Architect and/or Engineers. The
Construction Manager's role is to advise the Team on the feasibility of the
chosen design, provide pricing information throughout the design phase and
inspect the work during the construction phase.
Typically, one or more
General Contractors are chosen to actually construct the Project. The Owner
signs contracts with the General Contractor(s).
This approach is
characteristically used for very large and complex Projects where the Owner has
placed a priority on quality. The Owner does not have to have experience and
knowledge of construction projects if they choose a competent Team. |
Advantages: |
 |
The Owner gets pricing information early on and as the
Project develops. |
 |
The Owner can take advantage of special services such as
preliminary feasibility studies, value engineering and life cycle cost
analysis. A good Construction Manager can typically earn their fee by reducing
overall costs during the planning stage. |
 |
The Project duration can be shortened because the actual
construction can begin before the entire design has been completed. |
 |
Design fees are kept to a minimum and are determined
from the beginning of the Project. |
 |
The Construction Manager's fee is established from the
beginning of the Project. |
 |
Quality is stressed over lowest price. |
Disadvantages: |
 |
The Owner assumes more risk than for other project
delivery methods. |
 |
The Owner must sign contracts with the General
Contractor(s). |
|
Construction Management at Risk - Where the
Construction Manager is also acting as the General Contractor. |
 |
In this method of Project delivery the Owner selects a
Construction Manager in addition to the Architect and/or Engineers. The
Construction Manager's role is to advise the Team on the feasibility of the
chosen design, provide pricing information throughout the design phase, hire
and manage all of the Subcontractors that will be involved in the project as
well as to inspect the work during the construction phase.
This method
is best utilized where the Owner has a great deal of trust and confidence in
the Construction Manager and is typically used where an excellent relationship
between the Owner and Construction Manager already exists. |
Advantages: |
 |
The Owner gets pricing information early on and as the
Project develops. |
 |
The Owner can take advantage of special services such
as preliminary feasibility studies, value engineering and life cycle cost
analysis. A good Construction Manager can typically earn their fee by reducing
overall costs during the planning stage. |
 |
The Project duration can be shortened because the actual
construction can begin before the entire design has been completed. |
 |
Design fees are kept to a minimum and are determined
from the beginning of the Project. |
 |
The Construction Manager's fee is established from the
beginning of the Project. |
 |
Quality is stressed over lowest price. |
Disadvantages: |
 |
This method has fewer check and balances. |
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