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CONSTRUCTION MANAGEMENT METHODS
Construction Management (CM) is a fairly broad term covering a variety of project delivery options within the construction manager's role. These varying roles also come with differing levels of authority and responsibility, depending upon how the project is structured. Fees are paid to the CM in relation to the services to be performed, which range from advising during a particular phase of the building process to acting as the owner's agent in all matters effecting the project. CM is appropriate for both public and private projects that are relatively complex, for which budget or schedule must be closely monitored, and those requiring extensive coordination of consultants or multi-prime contractors or subcontractors.
Construction Manager-as-Advisor
This project delivery option is characterized by the additional consultant brought to the building team, a CM who acts as an advisor to the owner. The authority afforded the CM-advisor varies, but the architect and contractor generally maintain their conventional roles. There are four primary players under this delivery method: owner, construction manager, architect, and contractor. The process typically involves four phases, adding the CM-advisor to the team either at the beginning of the project or once the design is complete. First, the owner hires an architect to prepare design and construction documents. When hired in this phase, the CM-advisor oversees design in terms of its implications for cost, schedule, and constructability. Construction documents are then used for bidding or negotiation and a contractor is selected with the advice of the CM. The CM stays on as advisor through completion of construction. A CM-advisor is appropriate for owners who wish to hire an architect and contractor directly, but who do not have the time or in-house expertise to oversee the building process. The primary advantage is the direct contractual relationship with the owner to provide careful monitoring of costs, schedule, and continuous project oversight. The major disadvantage is the added cost of the advisor's fee and the possible confusion of traditional roles and relationships. |
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Construction Manager-as-Agent
This type of CM delivery option is differentiated by the authority placed with the CM to act as the owner, thus allowing the owner to step back from the project. Like CM-as-Advisor, those acting as the owner's agent are hired for their expertise in construction, technology, costs, scheduling, and constructability. Because CM-agents assume financial authority for the project, they must also have experience managing all fiscal aspects of a project. Like other CM structures, there are four primary players: owner, construction manager, architect, and contractor. The typical CM-agent process involves four phases: (One) the CM is hired by the owner to act as his/her agent to oversee all project activities through completion of construction; (Two) the architect is brought on board and contracts with the CM. Design of the project and construction documentation occurs; (Three) the project is bid or negotiated to a select general contractor who is also contracted with the CM. Cost guarantees are made; (Four) the contractor builds the project. This method is appropriate for absentee owners who do not wish to take an active, day-to-day role in the project. The main advantage is the single-point of responsibility it affords the owner, and is very similar to design-bid-build and can be easily tracked. The main disadvantage is the suppressed communications between the owner and other team members along with the added consultant costs and overlapping duties. |
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Construction Manager-as-Constructor
Under this delivery method the CM is hired prior to the completion of design to act as the project coordinator and general contractor. Compared to other options, this method is structurally and contractually similar to design-bid-build, has the advisory benefits of CM-advisor, and involves the early cost commitment characteristics of design-build. The CM-constructor may be hired by bid to deliver the building for a guaranteed maximum price (GMP) or by creating multiple bid packages. In either case, the CM assumes all the liability and responsibility of the general contractor, which explains why this method is also known as CM-at-risk. This method has three primary players: owner, architect and construction manager. The process involves three phases: (One) the owner contracts with the architect for design of the project. When design is approximately 30% complete, scope-of-work documents are prepared; (Two) based on those documents, the project is bid in order to select the CM-constructor; (Three) the owner hires the CM-constructor to advise during preconstruction and to build the project. Upon completion of construction documents, the CM-constructor generally will rebid some or all of the construction to multi-prime contractors or other subcontractors. This method is best utilized for projects that need to be fast tracked, or owner's for whom cost, schedule, or construction implementation would be complicated to manage. The principal advantage is the initial focus on design issues and the provision of construction advice during design while providing careful oversight of costs, schedule, and constructability. Also, for some owners, the single most important advantage is early cost definition and schedule guarantees. Disadvantages include the potential for adversarial relationships and change orders/claims from low bidding prime or trade contractors. |
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