CONSTRUCTION MANAGEMENT

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Description

A construction manager is hired early in the process as a collaborative team member. Because the project isn't fully designed when construction begins, the construction manager typically provides construction services on a cost plus fee basis. To ensure the project will be completed within the owner's budget, the construction manager also provides a guaranteed maximum price (GMP). The construction manager is responsible for costs in excess of the GMP that are not due to changes in the original scope of the work.

Pros

  • Helps ensure the project will be within the owner’s budget.
  • The owner only pays for the actual cost of the work.
  • Fosters teamwork.
  • Input from CG Schmidt early in the process allows evaluation of alternate building systems before committing to a specific design solution – saving money and time.
  • Design and construction activities can be overlapped to accelerate project delivery.

Cons

  • Because the construction documents are incomplete at the time the GMP is established, there is sometimes ambiguity concerning the scope of work included, potentially making the owner financially liable for exclusions and inconsistencies.
  • There is no single point of accountability for ensuring the project meets the owner’s performance expectations.