for carrying out the work as spelled out in the plans and specs and will utilize the various construction management functions to accomplish this task.
Under the design-bid-build method, the owner warrants the sufficiency of the plans and specs to the contractor. If there are gaps between the plans and specs and the owner's requirements or any errors and omissions in the design, the owner is responsible for paying for those corrections. I mention this because the contractor is often the one who discovers the errors and submits the change orders necessary to correct the work. This is never a happy occasion for the owner. A constructability review, which will be mentioned later, can help prevent such surprises.
Construction Management
As you now know, construction management may be viewed from several different perspectives, and one of them is as a specific project delivery method. Under this approach, construction management services are provided to the owner independent of the construction work itself. The owner has two options to choose from as to how they want the CM to interact with the actual construction of the project.
construction management
The planning, scheduling, evaluation, and controlling of construction tasks and activities to accomplish specific objectives outlined in the contract documents.
Option 1: agency CM The Construction Management Association of America (CMAA) defines agency CM as a fee-based service in which the construction manager is responsible exclusively to the owner and acts in the owner's best interests at every stage of the project. In this case, the construction manager offers advice uncolored by any conflicting interest because the construction manager does not perform any of the actual construction work and is not financially at risk for it.agency CMA construction management option in which the construction manager acts in the owner's best interests at every stage of the project from design through construction. In this capacity, the construction manager provides only advice and management oversight services to the owner, and has no legal authority, operational responsibility, or financial obligation for the delivery of the design or construction of the project. Therefore, agency-CM is not a project delivery system, but simply a professional service.This arrangement involves three contracts: one between the owner and the designer, one between the owner and the contractor, and one between the owner and the construction manager. The owner hires a designer and a contractor exactly as described under the design-bid-build scenario. In addition, the owner also contracts with a third party, a construction management firm that provides construction management functions but as an independent agent or representative of the owner.
The party responsible for the construction work is still an individual general contractor, and that contractor still carries out construction management functions relative to their internal requirements for managing the project to completion. In some unique situations, the owner may elect to bypass a general contractor and contract directly with several specialty contractors and allow the CM firm to manage each of them. These are called multiple prime contracts.
Option 2: at-risk CM (also called CM/GC) The CMAA defines the at-risk CM project delivery method as an option that entails a commitment by the construction manager to deliver the project within a guaranteed maximum price (GMP). The construction manager acts as consultant to the owner in the development and design phases but does the work of a general contractor during the construction phase.multiple primeA contracting methodology in which the owner bypasses the use of a general contractor and enters into multiple separate contracts with trade or specialty contractors for the various sections of the work associated with the project, such as concrete, framing, mechanical, and electrical work. Each of the specialty contractors involved becomes a prime contractor on the project.at-risk CMA project delivery method where the construction manager acts as a consultant to the owner in the development and design phases but as the equivalent of a general contractor during the construction phase.In this scenario, there are only two contracts, one between the owner and designer and one between the owner and the at-risk CM.Although this might seem like a tricky relationship to manage, owners are comfortable with it because the at-risk CM is also responsible for performing the construction and carries financial liability for bringing the project in on time and within budget. By contrast, under the agency CM model, which is not classified as a project delivery method, the construction manager is not at risk for the budget, the schedule, or the performance of the work.
value engineering
A process in which various alternative approaches are evaluated and considered regarding design, product selection, or building system in an effort to provide the most efficient, cost-effective solution possible relative to value in response to the desires of the owner.
constructability reviews
A design review process in which experienced contractors and construction managers work with designers to ensure that the details of the design actually can be built in an efficient and cost-effective manner. The process entails review of materials, application, installation techniques, field execution, and building systems.
One of the great things about construction management project delivery is that it provides a contractual avenue by which the owner can bring the CM function into play early in the project planning and make direct dialogue with the design team possible. In these circumstances, the construction manager, acting on behalf of the owner, can contribute by providing value engineering, life-cycle cost analysis, conceptual estimating and scheduling, and what is called constructability reviews during the design process and head off possible incompatibilities between design and construction, which typically result in cost overruns, time delays, conflicts, and legal claims down the road.
NOTE
One of the most frustrating things that happens with traditional design-bid-build project delivery is when the estimates all come in too high. Then the project goes back to the drawing board for redesign and is significantly delayed, leaving everyone involved deeply disappointed. The way to avoid this common occurrence is by using a project delivery method that allows for early contractor involvement and encourages a team approach.
Design-Build
The design-build methodology continues to grow in popularity. It is often referred to as single-source project delivery and is the closest method we have to the master builder approach of old. In this arrangement, there is only one contract. The owner contracts with a design-build entity, which will be responsible for both the design and the construction of the project.
design-build
A project delivery method in which there is only one contract between the owner and a design-build entity. The design-builder is responsible for both the design and the construction of the project. This method is often referred to as single-source project delivery.
