Chapter 2: What is Construction Management?

At-Risk CM

A project delivery method where the construction manager acts as a consultant to the owner in the development and design phases but as the equivalent of the general contractor during the construction phase.

Six Dials of Project Value

Cost, Time, Quality, Safety, Scope, Function

Contractor Procurement Options

Direct Negotiation Qualifications Based Selection (QBS) Best Value: Fees Best Value: Total Cost Low Bid

Architect Procurement Options

Direct Negotiation Qualifications Based Selection (QBS) Best Value: Fees Low Fee

CM Functions

Estimating the project Administering the contract Managing job site and construction operations Planning and scheduling the project Monitoring project performance Managing project quality Managing project safety Assessing project risks

GMP

Guaranteed Maximum Price

Agency CM

The construction manager acts in the owner's best interests at every stage of the project from design through construction. The construction manager offers advice and project management services to the owner but is not financially responsible for the construction.

Three-Legged Stool

Time, Cost, and Quality (and safety)

Multiple Prime

A contracting methodology in which the owner bypasses the use of a general contractor and enters into multiple separate contracts with trade or specialty contractors for the various sections of the work associated with the project, such as concrete, framing, mechanical, and electrical work. Each of the specialty contractors involved becomes a prime contractor on the project.

Characteristics of IPD

A contractual arrangement among multiple parties including, at a minimum, the owner, the architect, and the contractor

Constructability Reviews

A design review process in which experienced contractors and construction managers wok with designers to ensure that the details of the design actually can be built in an efficient and cost-effective manner. The process entails review of materials, application, installation techniques, field execution, and building systems.

Fast Tracking

A practice utilized to speed up a job by overlapping the design phase and the construction phase of a project. It's often applied in design-build or construction management project delivery.

Value Engineering

A process in which various alternative approaches are evaluated and considered regarding design, product selection, or building system in an effort to provide the most efficient, cost-effective solution possible relative to value in response to the desires of the owner.

Design-Bid-Build/ The Traditional Project Delivery Method

A project delivery method in which the owner holds two separate contracts for design and construction.

Design-Build/ Single-Source Project Delivery

A project delivery method in which there is only one contract between the owner and a design-build entity. The design-builder is responsible for both the design and the construction of the project.

Integrated Project Delivery

Any project delivery method that contractually engages the contractor responsible for constructing the project at the beginning of the design process. Both design-build and at-risk CM are considered integrated project delivery models.

Selection for project delivery method

Based on price, qualifications, or combo

BIM

Building Information Modeling BIM is NOT reserved exclusively for use with IPD projects

CPI

Collaborative Process Institute A group of owners, architects, contractors, and engineers Came up with six dials of project value

Three project delivery methods

Design-Bid-Build Construction Management Design-Build

Job of the Construction Manager

Take a set of written plans and specifications and a raw piece of land and then coordinate all of the materials, manpower, and equipment necessary to guarantee the set price, schedule, and quality of the project- without any accidents or errors, regardless of weather conditions, interest rate fluctuations, acts of God, or any other unforeseen conditions

Risk Tolerance

The extent to which an organization chooses to risk experiencing a less favorable outcome in the pursuit of a more favorable outcome

Management

The means for coordinating the process of design and construction (planning, staffing, budgeting, monitoring)

Delivery

The method for assigning responsibility to an organization or an individual for providing design and construction services.

Difference between project delivery methods

The number of contracts the owner executes The relationship and roles of each party to the contract The point at which the contractor gets involved in the project The ability to overlap design and construction Who warrants the sufficiency of the plans and specifications

Scope of Work

The parameters defining the overall extent of work to be included in a construction contract. The project scope is commonly communicated through construction plans and written specifications.

Construction Management

The planning, scheduling, evaluation, and controlling of construction tasks or activities to accomplish specific objectives by effectively allocating and utilizing appropriate labor, material, and time resources in a manner that minimizes costs and maximizes customer/owner satisfaction

Project Delivery

The process where all procedures and components of designing and building a facility are organized and put together in an agreement that results in a completed project.

Architectural Programming

The research and decision-making process, initiated by an owner, usually with the help of an architect or other programming specialist, that identifies the basic needs of the client and the parameters of the project to be designed and ultimately built by a construction professional.

Characteristics of CM at-Risk

Three primary players-owner, architect, CM at-Risk Two separate contracts- owner to architect, owner to CM at-Risk Final provider selection based on Qualifications Based Selection or Best Value: Fees

Characteristics of DBB

Three prime players- owner, designer, contractor Two separate contracts- owner-designer, owner-contractor Final contractor selection is based on Low Bid or Best Value: Total Cost

Characteristics of Design-Build

Two prime players- owner, design-build entity One contract-owner to design-build entity