G William Group has been a practitioner of Construction Management since its inception. We find it is the fairest and most beneficial construction method for both owner and manager.
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. GWG prefers the customary form of construction management where the CM 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 with the CM producing and managing the contracts. This approach may permit the construction work to be broken down into a significantly larger number of trade contracts thereby eliminating the need for one or more general contractors.
The following services are typical of a GWG CM Agreement:
|(a)||Provide administrative, management and related services to coordinate scheduled activities and responsibilities of the various Contractors with each other and with those of the Manager, the Owner and the Designer to endeavor to manage the Project in accordance with the latest approved estimate of construction cost, the Project schedule and the Contract Documents;|
|(b)||Supervise all aspects of construction while the work is being performed;|
|(c)||Schedule and coordinate the sequence of construction in accordance with the plans, specifications and the latest approved Project construction schedule;|
|(d)||Schedule utilities and their installation;|
|(e)||Report and consult with the Owner for construction decisions;|
|(f)||Receive bids, prepare bid analysis and make recommendations to the Owner for the Owner's award of contracts or rejection of bids;|
|(g)||Prepare Contract Documents;|
|(h)||Assist the Owner in obtaining building permits and special permits for permanent improvements, except for permits required to be obtained by the various Contractors;|
|(i)||Review requests for changes, assist in negotiating Contractor's proposals, submit recommendations to the Owner, and, if they are accepted, prepare appropriate Change Orders;|
|(j)||Coordinate the sequence of construction and assignment of space in areas where the Contractors are performing work and/or storing materials;|
|(k)||Maintain accounting records on all authorized work and develop and implement procedures for the review and processing of applications by Contractors for progress and final payments. In addition, based upon the Manager's observations and evaluations of each Contractor's Application for Payment, review and certify the amounts due the respective Contractors;|
|(l)||Schedule and conduct meetings, at least twice a month, with the Contractors and the Owner to discuss such matters as procedures, progress and scheduling;|
|(m)||Photograph the work as it progresses and retain for reference and develop "red line" as built drawings for the job;|
|(n)||Make known to all Contractors that each Contractor shall be responsible to remove all debris and keep site in a clean, safe condition;|
|(o)||Review the safety programs developed by each Contractor for purposes of coordinating the safety programs with those of the other Contractors. The Manager's responsibilities for coordination of safety programs shall not extend to direct control over or charge of the acts or omissions of the Contractors, Subcontractors, agents or employees of the Contractors or Subcontractors, or any other person performing portions of the work and not directly employed by the Manager;|
|(p)||Maintain at the Project site for the Owner, one record copy of all Contract Documents, drawings, specifications, addenda, Change Orders and other modifications, in good order and marked currently to record changes and selections made during construction, and in addition, approved Shop Drawings, product data, samples and similar submittals;|
|(q)||Determine in general that the work of each Contractor is being performed in accordance with the requirements of the Contract Documents, endeavoring to guard against defects and deficiencies in the work. As appropriate, the Manager shall have authority, upon written authorization from the Owner, to require additional inspection or testing of the work, whether such work is fabricated, installed or completed. The Manager, in consultation with the Owner, may reject work which does not conform to the requirements of the Contract Documents;|
|(r)||Endeavor to obtain satisfactory performance from each of the Contractors. The Manager shall recommend courses of action to the Owner when requirements of the Contract are not being fulfilled;|
|(s)||Observe all phases of construction, supervision, and effect proper coordination.|
A major benefit to the construction management approach is that, under the disciplined scheduling of the CM, 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 AdvantagesConstruction 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. CM contributes to the team approach in the owner's interest.
Value engineering by CM can be done at this time when it can be implemented into the design. Major design decisions can be made on the basis of comprehensive information.
CM early involvement facilitates financial planning and avoids potential delays for redesign caused by budget problems recognized too late. All pricing, records, books, estimates are "open book".
Astute buying and value engineering with trade contractors results in cost savings reverting to owner, not general contractor. Competitive bidding is kept on all sub-contracted services resulting in flexibility to pre-qualify trade contractors for better control of schedules and costs.
The schedule is controlled during design phase to ensure that design efforts are integrated with construction phase requirements and provides fast track methodology or phased construction providing earlier completion. This also allows cost savings available through earlier start and pre-purchasing and the ability to pre-order long lead items.
In addition to other benefits offered by construction management, the savings realized by the owner in avoiding overhead and profit mark-ups by a general contractor will, in most cases, more than compensate for the construction manager's fee.
The CM assumes overall responsibility for the coordination and completion of the project. It is important to note that the construction manager functions as agent and on-site coordinator for the owner. In supervision of the job, the CM uses techniques such as the Status Report to ensure communication between all parties and Meeting Minutes, Scheduling and Procedures as driving mechanisms to maintain the progress of the job while keeping the owner informed of the status.
Finally, the construction management firm will supply the owner with regular and final accounting of funds and invoices. Accounting and Fiduciary Responsibility are key to the quality of the services offered by the construction management approach.
A CM is an Agent/Fiduciary for the owner and acts as its trusted construction professional in all project administration for the project. The use of this construction manager/owner relationship squarely places the CM as a skilled ally working in the owner’s interests.