the design is being developed. In this arena, the construction manager will have an opportunity to contribute their expertise relative to constructability, building costs, labor availability, scheduling issues, and the like. Because the design has such an impact on all of these construction issues, having the contractor's input up front helps the architect make better design decisions and avoid project delays, cost overruns, or unconstructible building details.
Under this definition, both design-build and at-risk CM can be classified as integrated project delivery models. However, there is also an IPD approach that has a unique contracting format known as an Integrated Form of Agreement or IFOA. An IFOA is a multiparty agreement, whereby the owner, architect, and contractor (O/A/C) all sign one agreement and share liability for the development and delivery of both the design and construction of the project. In this sense, the owner is actually accountable for the delivery of their own project, and may benefit from financial gains, or suffer financial losses, associated with the project's performance. According to Hanson Bridgett's Executive Summary of IFOA, the purpose of the IFOA is:
“To provide a legal relationship among the owner, design team, and construction team that aligns them on what is best for the project as a whole.”
NOTE
Hanson Bridgett is a law firm based in the San Francisco Bay area known for its expertise in Integrated Project Delivery. They have published a number of white papers on the subject. To learn more go to www.hansonbridgett.com.
Integrated Form of Agreement
Integrated project delivery provides a unique opportunity for construction professionals who desire a more collaborative approach to the design and construction process to participate at the design stage in a proactive fashion. Construction practitioners who have a particular appreciation for design excellence are generally well suited to these approaches. Participating as a member of an integrated project delivery team requires cross-disciplinary knowledge, expertise, and experience beyond construction management. Because the integrated project delivery approach is gaining popularity among owners, individuals who have this unique interest or background will find many opportunities in the future to contribute to a project's success.
integrated form of agreement
A multiparty agreement that includes the owner, design professional, and constructor as signatories to the same construction contract. This unique legal relationship is also referred to as an IFOA.
NOTE
When construction managers are engaged in the early stages of a project, they are often able to add value to the project by considering owner needs relative to the construction process. For example, a construction manager may recommend a phased approach to the construction if an owner needs to get a particular production line or function up and running before the completion of the entire facility. Good construction managers are great at solving these kinds of problems, and it is a smart owner who brings them on board to discuss end-user needs during the predesign phase.
Trends in Project Delivery
It is important for anyone involved in, or planning to get involved in, construction management to fully understand the concept of project delivery, especially today. Today there is an increasing trend toward the more collaborative integrated project delivery methods such as construction management and design-build.
Bringing in construction professionals at the earliest planning stages of a project saves money in the long run and usually means that the project will be delivered earlier with fewer conflicts and higher quality. Now that awareness of these benefits has become widespread, the role of the construction manager is expanding, and by most accounts this is a good thing. The following cost-influence curve highlights this fact.
As you view the graph, consider the process of building a new home. It would be far less expensive to decide to add extra electrical outlets during the wall framing stage than it would be to make that decision after the drywall was up and the walls were painted. It would be even more cost effective to make that decision while the plans were still on the drawing board. Early contractor involvement helps flush out deficiencies in the design.
To some, bringing the contractor on board early in the planning stages may seem unnecessary and expensive, but if their input during design will help head off problems during the construction phase later when making changes becomes very costly, then the money is well spent.
Project Delivery Selection
Each of the project delivery methods I've discussed has advantages and disadvantages. It is the owner's job to select the best project delivery method relative to the requirements for the project. Some factors that influence an owner's project delivery selection include cost, schedule, quality, design, risk tolerance, and construction expertise. Every project is different, and there is not one single method suited to all situations or project types. It is very important to assess the goals for every new project being considered.
For example, if schedule is the most important criterion on a project, then selecting the design-build method would be the smartest choice because it is typically the fastest project delivery method. However, if high owner involvement in the design process is desired, then design-bid-build would be the better choice, because the owner hires the designer directly.
It is not the intention of this book to have you become an expert when it comes to project delivery, but I do want you to understand that just as scope definition has a significant impact on project risk, so does the project delivery method. The ability of the construction manager to discern the thoroughness of the scope definition and the suitability of the project delivery method goes a long way in mitigating risk from the start.
NOTE
You can learn more about the various project delivery approaches by accessing McGraw Hill's Smart Market Report entitled Project Delivery Systems at https://dbia.org/wp-content/uploads/2018/05/Research-Project-Delivery-Systems-SmartMarket.pdf.
What Does a Construction Manager Do?
You are now aware of exactly what it is that you are supposed to be managing as a construction manager—cost, time, quality, and safety, right? And basically your job is to mitigate the risks associated with each of these factors and optimize project performance. But there's more. Before you have anything to manage, you must first compete for the opportunity to actually build the project. I haven't yet talked about one definitely critical task associated with
