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
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