Construction Management

Construction Management is a delivery system where the owner typically contracts separately with the designer and contractor. Unlike a “bid” project where the contractor is hired after designs are completed. The contractor or Construction Manager (CM) is hired in the pre-construction phase and typically provides consulting during the planning and design phases in addition to constructing the project. The CM provides input on costs, constructability and scheduling during design and planning. Once construction starts the CM oversees all costs, scheduling and quality for the project through to completion. The typical model employed in New England is Construction Management “At Risk”. In this system the CM provides the owner with a Guaranteed Maximum Price (GMP). This is the maximum the project will cost for a given scope. It is now the CM’s responsibility to work with the designer to control costs because any amount over the GMP will be absorbed by the CM. The advantage is that if costs are controlled, the savings, or a set portion, are returned to the owner. The CM provides these services for a set fee. Construction Management focuses on quality. This starts with the selection of the designer and construction manager and continues with the selection of materials, methods and subcontractors.

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