Advantages Of Construction Management

Why Does Construction Management Make sense?

Allows for “BUDGETING” to meet the Customer’s Budget prior to placing trades out for bids.
Should the initial cost estimate be over or below the Customer’s budget, it allows for “Value Analysis” to reduce costs & affords the Customer the opportunity to make upgrades & purchase at bid prices.
Provides a “CHECK & BALANCE” system between the contractor & architect. (The contractor can advise the Customer &/or Architect when a more economical design could be utilized & when construction documents may be lacking certain required information. Conversely, the Architect can review the progress & quality of the work that the contractor performs).
Increase the “QUALITY” of the project, as it allows the Customer, Architect & Manager team to solicit bids from pre-qualified subcontractors.
Provides for a “LESS LITIGIOUS & ADVERSARIAL” relationship, as the Contractor acts as an extension & agent of the Customer.
The Customer has more “CONTROL” as a Construction Management Contract allows more flexibility for modifications & revisions to the design.
The Customer can select the “BEST CONTRACTOR” for the project as it can solicit Request for Proposals (RFP’s) & select the successful Contractor based on the criteria it establishes.

The Customer can select the best Contractor for the Project.
Provides a strong checks & balances system between the Architect & Contractor during design.
Provides for timely preconstruction & budget input by the Contractor.
Provides accurate budget input, system evaluation & value engineering.
Breaks down bid packages to develop maximum competition & quality.
Costs savings revert back to the Customer.
The Contractor has the Customer’s interest foremost when dealing with subcontractors.
The Customer’s budget is established during preconstruction.
The Customer exercises “total control” of the project & can make changes in a non-adversarial format.
The Contractor monitors the schedule & cash flow to the advantage of the Customer.
The Contractor works for a “fixed” fee.
Allows the project cost to be verified & guaranteed prior to the Architect completing design documents.
Allows the Customer an opportunity to make changes once the project cost is fixed.
Allows for an early start of construction (fast tracking) & subsequent savings in escalation & time.

Does not guarantee the lowest cost. General Contractor’s interests are the opposite of the Customer’s.
Costs are not defined until built.
There is no preconstruction input.
Overall project duration is longer due to the sequential process.
No control by the Customer.
Assumes that all General Contractors are “Created Equal”.
No savings are returned to the Customer.
Assumes that a perfect set of documents are prepared by the Architect.
Customer has to work with whoever the “Low Bidder” is and has no say in the selection of the contractor.

The chart developed below summarizes these function.

Pre-Construction Services	Construction Services	Post Construction Services
· Plan & Specification Review · Value Analysis · Budgeting & Estimating · Schedule Development · Procurement of Long Lead Items · Inspection & Interpretation of Documents · Personnel Assignment	· Competitive Bidding · Trade Contracts Administration · Site Mobilization Plan · Temporary Facilities · Coordination Meetings · Shop Drawings, Catalogs & Material Samples Coordination · Maintain Job Site Records · Coordinate Trade Permits · Safety – Jobsite & Public · Daily Construction Reports · Schedule Management · Process Progress Payments · Labor Relations	· Inspections · Operations Start-up · Guarantees/Warranties · Punchlist · As-Built Drawings