Construction Management Advantages
Under a construction management approach to a major building project, professional expertise in the
specialized areas of cost estimating, systems analysis, value engineering, "constructability" review
scheduling of activities, procurement, and construction coordination and supervision is added to the
capabilities of the traditional project team of owner and architect.
The involvement of a construction manager (CM.) during the entire design process as a collaborative
yet independent member of the design team helps ensure that every major design decision is
balanced by proper analysis of its cost consequences, and impact on project schedule.
The role of the construction manager in a building project may vary substantially, and can be
performed under a variety of contractual terms. The most traditional, and some would say "purest"
form of construction management is that where the C.M. acts as the owner’s agent as a consultant,
providing estimating, cost control and scheduling services and undertaking administrative
responsibilities during construction. Under this arrangement, all construction contracts would be
executed directly between the owner and contractors. This approach may permit the construction
work to be broken down into a significantly larger number of trade contracts also, thereby
eliminating the need for one or more "general" contractors.
A major benefit to the construction management approach is that, under the disciplined scheduling
of the C.M., the project may be phased or "fast-tracked" whereby the design and construction periods
are overlapped to permit an earlier start and completion of construction.
Major Advantages
Construction costs are identified and predicted reliably during the design phase. Team interacts
relating to construction cost, completion schedule, and quality work to maximize owner’s value. C.M.
contributes to a synergistic team approach in the owner's interest.
Value engineering by C.M. can be done at this time when it can be implemented into the design.
Major design decisions can be made on the basis of complete information.
C.M. early involvement facilitates financial planning and avoids potential delays for redesign caused
by budget problems recognized too late. All records, books, estimates are "open book".
Prudent buying and value engineering with trade contractors results in cost savings reverting to
owner, not general contractor. Competitive bidding is retained on all work. Flexibility to pre-qualify
trade contractors for better control of schedules and costs.
Schedule is controlled during design phase to ensure that design efforts are integrated with
construction phase requirements. Facilitates fast track methodology or phased construction
providing earlier completion. Cost savings available through earlier start and pre-purchasing.
Ability to pre-order long lead items.
Single prime responsibility for construction. No additional owner personnel required to monitor
construction.
Major Disadvantages
Duplication of some supervision and contractors’ mark-ups. These costs must be offset by value
engineering, etc.
Project may not be fully designed at start of construction which may expose owner to change orders.
This potential is inherent in any form of fast-track construction, but can be controlled to a minimum.