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| Design/Bid/Build Negotiated Contract Design/Build Construction Management | ||
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Construction Management Agency CM or At-Risk CM | |
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This form of project method is typically used on many larger, complex and long-term projects. There may be multiple prime contractors and the owner may require extra management resources to control this type of project. In this method prospective architects and construction managers are asked to submit qualification statements and participate in formal interviews with the owners. (We suggest a limited or invited list). Once selected, the CM comes on board to help the selected architect in the design process, aiding in value engineering and budget control. The CM will also perform administration and other management functions within a defined scope of services per the owner’s request. | |
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NOTE: The owner needs to choose the amount of risk the CM should assume on the project. | |
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A) | |
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Agency CM – The construction firm assumes the role of agent to the owner in a relationship parallel to that of an architect or engineer, and primarily administers the work of other construction entities. The owner “holds the contracts” for all work. | |
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B) | |
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At Risk CM – The construction firm is also the constructor of the project, acting much like a general contractor during the construction phase. The constructor “holds the contracts” for all work. | |
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The CM continues to work throughout the various phases of a project (planning, design and construction) and cooperates with the owner and the designer in furthering the interest of the owner. Once a budget has been established and plans and documents are completed the CM may issue small construction packages for a few sections of work at a time. With each bid section falling within budget, contracts may be issued for this fast track process. | |
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NOTE: There are many choices of pay schedules for CM projects. Please consult your prospective CM’s
for their input.
The construction manager acts as the owner’s representative on site during construction because he has hired all the subcontractors/suppliers and is responsible for scheduling. The architect assumes a limited role during construction. The construction manager’s involvement with the project begins with the owner’s selection and concludes at the end of the warranty period. |
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| Advantages | ||
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Owner has single source responsibility because the |
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architect relinquishes project control to the CM. |
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Streamlined communication exists between owner, |
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architect and CM. |
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Shortens design and bidding process. |
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Fewer disputes, claims and delays due to early |
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establishment of cooperative relations. |
| Issues and Disadvantages | ||
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Loss of control because the CM is not self performing any |
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of the critical construction work (if Agency CM). |
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The owner’s fee driven selection of CM. |
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The owner looses the flexibility of being able to have input |
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into the subcontractor selection because budget often times overrides reputation. |
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If project is not large enough it may not be |
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economical solution. |
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The Construction Management Method is Most Appropriate When: |  |
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The owner desires fast project delivery method due to weather, speedy revenue generation, | |
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or other issues regarding time constraints. | |
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Private enterprise or speculative building/leasing is the owner’s or land developer’s goal. | |
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Architectural design and aesthetics are not a high priority with the building owner. (This can be | |
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a priority but more time is required for design and construction) | |
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