For the Owner

Construction Management leads to heightened level of control of both the construction cost and quality.

Advantages to Owner

Construction Professional working with you. Team approach is emphasized. Construction Manager acts as an extension of the Owner’s staff.

Projects of large magnitude almost always involve change orders. Changes with Construction Management involve no markup.

Construction Manager can provide insight toward practical and cost effective building solutions.

Owner pays fixed Construction Management fee.

Fixed fee eliminates the maximize profit/minimize risk motive of lump sum process.

  • Construction Manager negotiates with Contractors with you.
  • Owner is involved in the contractor selection process. Bids can be reviewed collectively to determine the best qualified and the risk of hiring problematic contractors is considerably reduced.
  • Owner has full access to construction cost accounting and cost reporting.
  • Delivery system is faster. Long lead-time items can be ordered early and decision making with respect to change is expedited because the CM has no monetary incentive to change the scope of the project. The Construction Management format allows design, procurement, and construction to proceed simultaneously. General decision making is also faster because all of the participants are informed.
  • Cost savings go to owner.
  • Team approach helps develop non-adversarial relationships, which helps all parties focus on quality control and schedule. The Construction Manager becomes in line with owner’s objectives.

Bonding

  • Individual Contractors can supply 100% Payment and Performance Bonds. A threshold can be established under which Contractors would not require bonds which at the Owners option could be a source of savings.

Guaranteed Maximum Prices

  • Can be established once the plans have been fully developed and Contractors have been given an opportunity to bid on completed sets of construction documents.

Sequence

  • Complete construction documents
  • Construction Manager to assist with value engineering while the documents are being developed
  • Bid process
  • Contractor selection
  • Develop final construction budget
  • Develop GMP
  • Construction phase