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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.
Pure Construction Management
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:
arrow The Owner gets pricing information early on and as the Project develops.
arrow 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.
arrow The Project duration can be shortened because the actual construction can begin before the entire design has been completed.
arrow Design fees are kept to a minimum and are determined from the beginning of the Project.
arrow The Construction Manager's fee is established from the beginning of the Project.
arrow There is no General Contractor mark-up of Subcontractors.
arrow Quality is stressed over lowest price.

Disadvantages:
arrow The Owner assumes more risk than for other project delivery methods.
arrow The Owner must sign contracts with numerous Subcontracting entities.
arrow The Owner needs to be Construction knowledgeable.

Construction Management - Where the Construction Manager acts as an advisor with a General Contractor involved.
Construction Management
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:
arrow The Owner gets pricing information early on and as the Project develops.
arrow 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.
arrow The Project duration can be shortened because the actual construction can begin before the entire design has been completed.
arrow Design fees are kept to a minimum and are determined from the beginning of the Project.
arrow The Construction Manager's fee is established from the beginning of the Project.
arrow Quality is stressed over lowest price.

Disadvantages:
arrow The Owner assumes more risk than for other project delivery methods.
arrow 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.
Construction Management at Risk
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:
arrow The Owner gets pricing information early on and as the Project develops.
arrow 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.
arrow The Project duration can be shortened because the actual construction can begin before the entire design has been completed.
arrow Design fees are kept to a minimum and are determined from the beginning of the Project.
arrow The Construction Manager's fee is established from the beginning of the Project.
arrow Quality is stressed over lowest price.

Disadvantages:
arrow This method has fewer check and balances.

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