Construction Management is delivery method is when a construction manager is selected by the owner to deliver a project, usually for a guaranteed maximum price. The construction manager acts as consultant to the owner in the development and design phases, but as the equivalent of a general contractor during the construction phase.
During the design phase the CM is involved with estimating the cost of constructing a project based on the goals of the Designer and Owner and the overall scope of the project. In balancing the costs, schedule, quality and scope of the project, decisions can be made to modify the design concept instead of having to spend a considerable amount of time, effort and money re-designing and/or modifying completed construction documents.
Construction management is a process that allows the client of a project to choose the CM before the design stage is complete. The architect and CM work together in order to cultivate and assay the design. Then, the CM gives the client a guaranteed maximum price, and coordinates all subcontract work. The A/E is hired separately from the CM and the traditional client – A/E relationship is maintained. There are many advantages to construction management over traditional Design-Bid-Build delivery method. These advantages are:
- Increases the speed of the project and can also strengthen coordination between the architect/engineer and the construction manager.
- The client hires the construction manager based on qualifications, thus better ensuring a construction manager with a strong allegiance to the client, because their business relies on references and repeat work.
- Construction managers, architects/engineers, and the client all collaborate. This creates enhanced synergies throughout the process.
- Transparency is enhanced, because all costs and fees are in the open, which diminishes adversarial relationships between components working on the project, while at the same time eliminating bid shopping.