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Construction management (CM) is a professional service that uses specialized,
project management Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. T ...
techniques and software to oversee the planning, design, construction and closeout of a project. The purpose of Construction management is to control the quality of a project's scope, time / delivery and cost—sometimes referred to as a
project management triangle The project management triangle (called also the ''triple constraint'', ''iron triangle'' and ''project triangle'') is a model of the constraints of project management. While its origins are unclear, it has been used since at least the 1950s. It ...
or "triple constraints." CM is compatible with all project delivery systems, including design-bid-build, design-build, CM At-Risk and Public Private Partnerships. Professional construction managers may be hired for large to jumbo-scale, high budget undertakings (
commercial real estate Commercial property, also called commercial real estate, investment property or income property, is real estate (buildings or land) intended to generate a profit, either from capital gains or rental income. Commercial property includes office ...
,
transportation infrastructure Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
, industrial facilities, and
military infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
), called capital projects.


The role of a contractor

Contractors are assigned to a
construction Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and ...
project during the design for a constructibility review or once the design has been completed by a licensed architect or a licensed civil engineer. This is done by going through a
bidding Bidding is an offer (often competitive) to set a price tag by an individual or business for a product or service ''or'' a demand that something be done. Bidding is used to determine the cost or value of something. Bidding can be performed ...
process with different contractors. As dictated by the project delivery method, the contractor is selected by using one of three common selection methods: low-bid selection, best-value selection, or qualifications-based selection. A construction manager is hired for the following deliverables means and methods, communications with the authority having jurisdiction,
time management Time management is the process of planning and exercising conscious control of time spent on specific activities, especially to increase effectiveness, efficiency, and productivity. It involves of various demands upon a person relating to wo ...
, document control cost controls and management, quality controls,
decision making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either ra ...
,
mathematics Mathematics is an area of knowledge that includes the topics of numbers, formulas and related structures, shapes and the spaces in which they are contained, and quantities and their changes. These topics are represented in modern mathematics ...
,
shop drawings A shop drawing is a drawing or set of drawings produced by the contractor, supplier, manufacturer, subcontractor, consultants, or fabricator. Shop drawings are typically required for prefabricated components. Examples of these include: ele ...
,
record drawings A record, recording or records may refer to: An item or collection of data Computing * Record (computer science), a data structure ** Record, or row (database), a set of fields in a database related to one entity ** Boot sector or boot record, r ...
and
human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms includ ...
.


Function

The functions of construction management typically include the following: #Specifying project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants. #Maximizing the resource efficiency through
procurement Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agency buys goods or s ...
of labor, materials and equipment. #Implementing various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process. #Developing effective
communications Communication (from la, communicare, meaning "to share" or "to be in relation with") is usually defined as the transmission of information. The term may also refer to the message communicated through such transmissions or the field of inquir ...
and mechanisms for resolving conflicts. The Construction Management Association of America (CMAA) states the most common responsibilities of a Construction Manager fall into the following 7 categories: Project Management Planning, Cost Management, Time Management, Quality Management, Contract Administration, Safety Management, and CM Professional Practice. CM professional practice includes specific activities such as defining the responsibilities and management structure of the project management team, organizing and leading by implementing project controls, defining roles and responsibilities, developing communication protocols, and identifying elements of project design and construction likely to give rise to disputes and claims.


Seven types of construction

*Agricultural: Typically economical buildings, and other improvements, for agricultural purposes. Examples include barns, equipment and animal sheds, specialized fencing, storage
silo A silo (from the Greek σιρός – ''siros'', "pit for holding grain") is a structure for storing bulk materials. Silos are used in agriculture to store fermented feed known as silage, not to be confused with a grain bin, which is use ...
s and
elevator An elevator or lift is a cable-assisted, hydraulic cylinder-assisted, or roller-track assisted machine that vertically transports people or freight between floors, levels, or decks of a building, vessel, or other structure. They ...
s, and water supply and drains such as wells, tanks, and ditches. *Residential: Residential construction includes houses, apartments, townhouses, and other smaller, low-rise housing, small office types. *Commercial: This refers to construction for the needs of private commerce, trade, and services. Examples include office buildings, "big box" stores, shopping centers and malls, warehouses, banks, theaters, casinos, resorts, golf courses, and larger residential structures such as high-rise hotels and condominiums. *Institutional: This category is for the needs of government and other public organizations. Examples include schools, fire and police stations, libraries, museums, dormitories, research buildings, hospitals, transportation terminals, some military facilities, and governmental buildings. *Industrial: Buildings and other constructed items used for storage and product production, including chemical and power plants, steel mills, oil refineries and platforms, manufacturing plants, pipelines, and seaports. *Heavy civil: The construction of transportation
infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
such as roads, bridges, railroads, tunnels, airports, and fortified military facilities. Dams are also included, but most other water-related infrastructure is considered environmental. *Environmental: Environmental construction was part of heavy civil but is now separate, dealing with projects that improve the environment. Some examples are water and wastewater treatment plants, sanitary and storm sewers, solid waste management and air pollution control.


Obtaining the project


Bids

A bid is given to the owner by construction managers that are willing to complete their construction project. A bid tells the owner how much money they should expect to pay the construction management company in order for them to complete the project. *Open bid: An open bid is used for public projects. Any and all contractors are allowed to submit their bid due to public advertising. *Closed bid: A closed bid is used for private projects. A selection of contractors are sent an invitation for bid so only they can submit a bid for the specified project.


Selection methods

*Low-bid selection: This selection focuses on the price of a project. Multiple construction management companies submit a bid to the owner that is the lowest amount they are willing to do the job for. Then the owner usually chooses the company with the lowest bid to complete the job for them. *Best-value selection: This selection focuses on both the price and qualifications of the contractors submitting bids. This means that the owner chooses the contractor with the best price and the best qualifications. The owner decides by using a request for proposal (RFP), which provides the owner with the contractor's exact form of scheduling and budgeting that the contractor expects to use for the project. *Qualifications-based selection: This selection is used when the owner decides to choose the contractor only on the basis of their qualifications. The owner then uses a request for qualifications (RFQ), which provides the owner with the contractor's experience, management plans, project organization, and budget and schedule performance. The owner may also ask for safety records and individual credentials of their members. This method is most often used when the contractor is hired early during the design process so that the contractor can provide input and cost estimates as the design develops.


Payment contracts

*Lump sum: This is the most common type of contract. The construction manager and the owner agree on the overall cost of the construction project and the owner is responsible for paying that amount whether the construction project exceeds or falls below the agreed price of payment. *Cost plus fee: This contract provides payment for the contractor including the total cost of the project as well as a fixed fee or percentage of the total cost. This contract is beneficial to the contractor since any additional costs will be paid for, even though they were unexpected for the owner. *Guaranteed maximum price: This contract is the same as the cost-plus-fee contract although there is a set price that the overall cost and fee do not go above. *Unitprice: This contract is used when the cost cannot be determined ahead of time. The owner provides materials with a specific unit price to limit spending.


Project stages

The stages of a typical construction project have been defined as feasibility, design, construction and operation, each stage relating to the project life cycle.


Feasibility and design

Feasibility and design involves four steps: programming and feasibility, schematic design, design development, and contract documents. It is the responsibility of the design team to ensure that the design meets all building codes and regulations. It is during the design stage that the bidding process takes place. *Conceptual/programming and feasibility: The needs, goals, and objectives must be determined for the building. Decisions must be made on the building size, number of rooms, how the space will be used, and who will be using the space. This must all be considered to begin the actual designing of the building. This phase is normally a written list of each room or space, the critical information about those spaces, and the approximate square footage of each area. *Schematic design: Schematic designs are sketches used to identify spaces, shapes, and patterns. Materials, sizes, colors, and textures must be considered in the sketches. This phase usually involves developing the floor plan, elevations, a site plan, and possibly a few details. *Design development (DD): This step requires research and investigation into what materials and equipment will be used as well as their cost. During this phase, the drawings are refined with information from structural, plumbing, mechanical, and electrical engineers. It also involves a more rigorous evaluation how the applicable building codes will impact the project. *Contract documents (CDs): Contract documents are the final drawings and specifications of the construction project. They are used by contractors to determine their bid while builders use them for the construction process. Contract documents can also be called working drawings.


Pre-construction

The pre-construction stage begins when the owner gives a notice to proceed to the contractor that they have chosen through the bidding process. A notice to proceed is when the owner gives permission to the contractor to begin their work on the project. The first step is to assign the project team which includes the project manager (PM), contract administrator,
superintendent Superintendent may refer to: *Superintendent (police), Superintendent of Police (SP), or Senior Superintendent of Police (SSP), a police rank *Prison warden or Superintendent, a prison administrator *Superintendent (ecclesiastical), a church exec ...
, and field engineer. *Project manager: The project manager is in charge of the project team. *Contract administrator: The contract administrator assists the project manager as well as the superintendent with the details of the construction contract. *Superintendent: It is the superintendent's job to make sure everything is on schedule, including the flow of materials, deliveries, and equipment. They are also in charge of coordinating on-site construction activities. *Field engineer: A field engineer is considered an entry-level position and is responsible for paperwork. During the pre-construction stage, a site investigation must take place. A site investigation takes place to discover if any steps need to be implemented on the job site. This is in order to get the site ready before the actual construction begins. This also includes any unforeseen conditions, such as historical artifacts or environment problems. A soil test must be done to determine if the soil is in good condition to be built upon.


Procurement

The procurement stage is when labor, materials and equipment needed to complete the project are purchased. This can be done by the general contractor if the company does all their own construction work. If the contractor does not do their own work, they obtain it through subcontractors. Subcontractors are contractors who specialize in one particular aspect of the construction work such as concrete, welding, glass, or carpentry. Subcontractors are hired the same way a general contractor would be, which is through the bidding process. Purchase orders are also part of the procurement stage. *Purchase orders: A purchase order is used in various types of businesses. In this case, a purchase order is an agreement between a buyer and seller that the products purchased meet the required specifications for the agreed price.


Construction

The construction stage begins with a pre-construction meeting brought together by the superintendent (on an American project). The pre-construction meeting is meant to make decisions dealing with work hours, material storage, quality control, and site access. The next step is to move everything onto the construction site and set it all up. A contractor progress payment schedule is a schedule of when (according to project milestones or specified dates) contractors and suppliers will be paid for the current progress of installed work. Progress payments or interim payments are partial payments for work completed during a portion of a construction period, usually a month. Progress payments are made to general contractors, subcontractors, and suppliers as construction projects progress. Payments are typically made on a monthly basis but could be modified to meet certain milestones. Progress payments are an important part of contract administration for the contractor. Proper preparation of the information necessary for payment processing can help the contractor financially complete the project.


Owner occupancy

Once the owner moves into the building, a warranty period begins. This is to ensure that all materials, equipment, and quality meet the expectations of the owner that are included within the contract.


Issues resulting from construction


Dust and mud

When construction vehicles are driving around a site or moving earth, a lot of dust is created, especially during the dryer months. This may cause disruption for surrounding businesses or homes. A popular method of dust control is to have a water truck driving through the site spraying water on the dry dirt to minimize the movement of dust within and out of the construction site. When water is introduced, mud is created. This mud sticks to the tires of the construction vehicles and is often lead out to the surrounding roads. A street sweeper may clean the roads to reduce dirty road conditions.


Environmental protections

*Storm
water pollution Water pollution (or aquatic pollution) is the contamination of water bodies, usually as a result of human activities, so that it negatively affects its uses. Water bodies include lakes, rivers, oceans, aquifers, reservoirs and groundwater. ...
: As a result of construction, the soil is displaced from its original location which can possibly cause environmental problems in the future. Runoff can occur during storms which can possibly transfer harmful pollutants through the soil to rivers, lakes, wetlands, and coastal waters. *Endangered species: If
endangered An endangered species is a species that is very likely to become extinct in the near future, either worldwide or in a particular political jurisdiction. Endangered species may be at risk due to factors such as habitat loss, poaching and in ...
species have been found on the construction site, the site must be shut down for some time. The construction site must be shut down for as long as it takes for authorities to make a decision on the situation. Once the situation has been assessed, the contractor makes the appropriate accommodations to not disturb the species. *Vegetation: There may often be particular trees or other vegetation that must be protected on the job site. This may require fences or security tape to warn builders that they must not be harmed. *Wetlands: The contractor must make accommodations so that erosion and water flow are not affected by construction. Any liquid spills must be maintained due to contaminants that may enter the wetland. *Historical or
cultural artifacts A cultural artifact, or cultural artefact (see American and British English spelling differences), is a term used in the social sciences, particularly anthropology, ethnology and sociology for anything created by humans which gives informatio ...
: Artifacts may include arrowheads, pottery shards, and bones. All work comes to a halt if any artifacts are found and will not resume until they can be properly examined and removed from the area.


Construction activity documentation

Project meetings take place at scheduled intervals to discuss the progress on the construction site and any concerns or issues. The discussion and any decisions made at the meeting must be documented. Diaries, logs, and daily field reports keep track of the daily activities on a job site each day. *Diaries: Each member of the project team is expected to keep a project
diary A diary is a written or audiovisual record with discrete entries arranged by date reporting on what has happened over the course of a day or other period. Diaries have traditionally been handwritten but are now also often digital. A personal ...
. The diary contains summaries of the day's events in the member's own words. They are used to keep track of any daily work activity, conversations, observations, or any other relevant information regarding the construction activities. Diaries can be referred to when disputes arise and a diary happens to contain information connected with the disagreement. Diaries that are handwritten can be used as evidence in court. *Logs: Logs keep track of the regular activities on the job site such as phone logs, transmittal logs, delivery logs, and RFI (Request for Information) logs. *Daily field reports: Daily field reports are a more formal way of recording information on the job site. They contain information that includes the day's activities, temperature and weather conditions, delivered equipment or materials, visitors on the site, and equipment used that day. Labor statements are required on a daily basis. Also list of Labor, PERT CPM are needed for labor planning to complete a project in time.


Resolving disputes

*Mediation:
Mediation Mediation is a structured, interactive process where an impartial third party neutral assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are ...
uses a third party mediator to resolve any disputes. The mediator helps both disputing parties to come to a mutual agreement. This cost-saving process ensures that no attorneys become involved in the dispute and is less time-consuming. *Minitrial: A minitrial takes more time and money than a mediation. The minitrial takes place in an informal setting and involves some type of advisor or attorney that must be paid. The disputing parties may come to an agreement or the third party advisor may offer their advice. The agreement is nonbinding and can be broken. *Arbitration:
Arbitration Arbitration is a form of alternative dispute resolution (ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or 'arbitral tribunal'), which renders the ...
is the most costly and time-consuming way to resolve a dispute. Each party is represented by an attorney while witnesses and evidence are presented. Once all information is provided on the issue, the arbitrator makes a ruling which provides the final decision. The arbitrator provides the final decision on what must be done and it is a binding agreement between each of the disputing parties.


Study and practice

Construction Management education comes in a variety of formats: formal degree programs (two-year
associate degree An associate degree is an undergraduate degree awarded after a course of post-secondary study lasting two to three years. It is a level of qualification above a high school diploma, GED, or matriculation, and below a bachelor's degree. Th ...
; four-year
baccalaureate degree A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to six ...
,
master's degree A master's degree (from Latin ) is an academic degree awarded by universities or colleges upon completion of a course of study demonstrating mastery or a high-order overview of a specific field of study or area of professional practice.
,
project management Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. T ...
, operations management engineer degree,
doctor of philosophy A Doctor of Philosophy (PhD, Ph.D., or DPhil; Latin: or ') is the most common degree at the highest academic level awarded following a course of study. PhDs are awarded for programs across the whole breadth of academic fields. Because it is ...
degree,
postdoctoral researcher A postdoctoral fellow, postdoctoral researcher, or simply postdoc, is a person professionally conducting research after the completion of their doctoral studies (typically a PhD). The ultimate goal of a postdoctoral research position is to pu ...
); on-the-job-training; and continuing education and professional development. Information on degree programs is available from
ABET The ABET (incorporated as the Accreditation Board for Engineering and Technology, Inc.) is a non-governmental organization that accredits post-secondary education programs in applied and natural sciences, computing, engineering and engineering ...
, the American Council for Construction Education (ACCE), the American Academy of Project Management (AAPM), the Construction Management Association of America (CMAA) or the Associated Schools of Construction (ASC). According to the American Council for Construction Education (one of the academic accreditation agencies responsible for accrediting construction management programs in the U.S.), the academic field of construction management encompasses a wide range of topics. These range from general management skills, through management skills specifically related to construction, to technical knowledge of construction methods and practices. There are many schools offering Construction Management programs, including some offering a master's degree.


Software

Capital project management software (CPMS) refers to the systems that are currently available that help capital
project owner In project management, an executive or project executive is a person who has ultimate responsibility for a project, and is a role defined in the recognized project management framework PRINCE2. It is appointed by the customer during the start of ...
/operators, program managers, and construction managers, control and manage the vast amount of information that capital construction projects create. A collection, or portfolio of projects only makes this a bigger challenge. These systems go by different names: capital project management software, computer construction software, construction management software, project management information systems. Usually construction management can be referred as subset of CPMS where the scope of CPMS is not limited to construction phases of project. Among main construction management software can be mentioned
Procore Procore Technologies is an American construction management software as a service company founded in 2002, with headquarters in Carpinteria, California. History Founder and CEO Craig "Tooey" Courtemanche created the software that became Procor ...
and
PlanGrid PlanGrid is a construction productivity software designed for onsite construction workers. PlanGrid digitises blueprints. It has features such as version control and collaboration tools such as field markups, progress photos and issues tracking. P ...
.


Required knowledge

*Construction and building *
Technology Technology is the application of knowledge to reach practical goals in a specifiable and reproducible way. The word ''technology'' may also mean the product of such an endeavor. The use of technology is widely prevalent in medicine, scien ...
*Public safety *
Customer service Customer service is the assistance and advice provided by a company to those people who buy or use its products or services. Each industry requires different levels of customer service, but in the end, the idea of a well-performed service is that ...
*
Human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms includ ...
*
Mathematics Mathematics is an area of knowledge that includes the topics of numbers, formulas and related structures, shapes and the spaces in which they are contained, and quantities and their changes. These topics are represented in modern mathematics ...
*Leadership


Business model

The construction industry typically includes three parties: an owner, a licensed designer (
architect An architect is a person who plans, designs and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
or
engineer Engineers, as practitioners of engineering, are professionals who Invention, invent, design, analyze, build and test machines, complex systems, structures, gadgets and materials to fulfill functional objectives and requirements while considerin ...
) and a builder (usually known as a
general contractor A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of ...
). There are traditionally two contracts between these parties as they work together to plan, design and construct the project. The first contract is the owner-designer contract, which involves planning, design, and construction contract administration. The second contract is the owner-contractor contract, which involves construction. An indirect third-party relationship exists between the designer and the contractor, due to these two contracts. An owner may also contract with a construction project management company as an adviser, creating a third contract relationship in the project. The construction manager's role is to provide construction advice to the designer, design advice to the constructor on the owner's behalf and other advice as necessary.


Design, bid, build contracts

The phrase "design, bid, build" describes the prevailing model of construction management, in which the general contractor is engaged through a tender process after designs have been completed by the architect or engineer.


Design-build contracts

Many owners – particularly government agencies – let out contracts known as ''design-build contracts''. In this type of contract, the construction team (known as the design-builder) is responsible for taking the owner's concept and completing a detailed design before (following the owner's approval of the design) proceeding with construction.
Virtual design and construction Virtual design and construction (VDC) is the management of integrated multi-disciplinary performance models of design–construction projects, including the product (facilities), work processes, and organization of the design – construction – o ...
technology may be used by contractors to maintain a tight construction time. There are three main advantages to a design-build contract. First, the construction team is motivated to work with the architect to develop a practical design. The team can find creative ways to reduce construction costs without reducing the function of the final product. The second major advantage involves the schedule. Many projects are commissioned within a tight time frame. Under a traditional contract, construction cannot begin until after the design is finished and the project has been awarded to a bidder. In a design-build contract the contractor is established at the outset, and construction activities can proceed concurrently with the design. The third major advantage is that the design-build contractor has an incentive to keep the combined design and construction costs within the owner's budget. If speed is important, design and construction contracts can be awarded separately; bidding takes place on preliminary plans in a not-to-exceed contract instead of a single firm design-build contract. The major problem with design-build contracts is an inherent conflict of interest. In a standard contract the architect works for the owner and is directly responsible to the owner. In design-build teaming agreement, the architect works for the design-builder, not the owner, therefore the design-builder may make design and construction decisions that benefit the design-builder, but that may not benefit the owner. During construction, the architect normally acts as the owner's representative. This includes reviewing the builder's work and ensuring that the products and methods meet specifications and codes. The architect's role is compromised when the architect works for the design-builder and not for the owner directly. Thus, the owner may get a building that is over-designed to increase profits for the design-builder, or a building built with lesser-quality products to maximize profits. However, incentive clauses are written into the contract to mitigate these issues.


Planning and scheduling

Project-management methodology is as follows: *Work breakdown structure *Project network of activities ** Critical path method (CPM) **Resource management **Resource leveling **Risk assessment


Architecture–engineer

*Work inspection *Change orders *Review payments *Materials and samples *Shop drawings *Three-dimensional image


Agency CM

Construction cost management is a fee-based service in which the construction manager (CM) is responsible exclusively to the owner, acting in the owner's interests at every stage of the project. The construction manager offers impartial advice on matters such as: *Optimum use of available funds *Control of the scope of the work *Project scheduling *Optimum use of design and construction firms' skills and talents *Avoidance of delays, changes and disputes *Enhancing project design and construction quality *Optimum flexibility in contracting and procurement *Cash-flow management Comprehensive management of every stage of the project, beginning with the original concept and project definition, yields the greatest benefit to owners. As time progresses beyond the pre-design phase, the CM's ability to effect cost savings diminishes. The agency CM can represent the owner by helping select the design and construction teams and managing the design (preventing scope creep), helping the owner stay within a predetermined budget with value engineering, cost-benefit analysis and best-value comparisons. The software-application field of
construction collaboration technology Construction collaboration technology refers to software applications used to enable effective sharing of project-related information between geographically dispersed members of a construction project team, often through use of a web-based software ...
has been developed to apply information technology to construction management.


CM at-risk

CM at-risk is a delivery method which entails a commitment by the construction manager to deliver the project within a
Guaranteed Maximum Price A guaranteed maximum price (also known as GMP, not-to-exceed price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) such that the contractor is compensated for actual costs incurred plus a fixed fee, limited to a ...
(GMP). The construction manager acts as a consultant to the owner in the development and design phases (preconstruction services), and as a general contractor during construction. When a construction manager is bound to a GMP, the fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager must control construction costs to stay within the GMP. CM at-risk is a global term referring to the business relationship of a construction contractor, owner and architect (or designer). Typically, a CM at-risk arrangement eliminates a "low-bid" construction project. A GMP agreement is a typical part of the CM-and-owner agreement (comparable to a "low-bid" contract), but with adjustments in responsibility for the CM. The advantage of a CM at-risk arrangement is budget management. Before a project's design is completed (six to eighteen months of coordination between designer and owner), the CM is involved with estimating the cost of constructing a project based on the goals of the designer and owner (design concept) and the project's scope. In balancing the costs, schedule, quality and scope of the project, the design may be modified instead of redesigned; if the owner decides to expand the project, adjustments can be made before pricing. To manage the budget before design is complete and construction crews mobilized, the CM conducts site management and purchases major items to efficiently manage time and cost.


Advantages

*CM is working "at risk", therefore have incentive to act in the owner's interest, as well as to efficiently manage construction costs, considering they would be liable for any amount in excess of the GMP *Ability to handle changes in design or scope


Drawbacks

*If a cost overrun occurred, it could cost the CM a great deal of money * The CM is allowed some mistake-related contingency, therefore there is a possibility that they will compensate by reducing the scope of the work to fit the GMP * Since the GMP is settled before design begins, it is difficult for owners to know whether they received the best possible bid


Bottom line

An at-risk delivery method is best for large projects—both complete construction and renovation—that are not easy to define, have a possibility of changing in scope, or have strict schedule deadlines. Additionally, it is an efficient method in projects containing technical complexity, multi-trade coordination, or multiple phases.


Accelerated construction techniques

Starting with its Accelerated Bridge Program in the late 2000s, the
Massachusetts Department of Transportation The Massachusetts Department of Transportation (MassDOT) oversees roads, public transit, aeronautics, and transportation licensing and registration in the US state of Massachusetts. It was created on November 1, 2009, by the 186th Session of t ...
began employing accelerated construction techniques, in which it signs contracts with incentives for early completion and penalties for late completion, and uses intense construction during longer periods of complete closure to shorten the overall project duration and reduce cost.


See also

*
Architectural engineering Architectural engineers apply and theoretical knowledge to the engineering design of buildings and building systems. The goal is to engineer high performance buildings that are sustainable, economically viable and ensure the safety health. Archi ...
* Building officials *
Civil engineering Civil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including public works such as roads, bridges, canals, dams, airports, sewa ...
* Construction engineering * Construction estimating software *
Cost overrun A cost overrun, also known as a cost increase or budget overrun, involves unexpected incurred costs. When these costs are in excess of budgeted amounts due to a value engineering underestimation of the actual cost during budgeting, they are known ...
*
Cost engineering Cost engineering is "the engineering practice devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis". "Cost Engineers budget, plan and monitor inve ...
*
Earthquake engineering Earthquake engineering is an interdisciplinary branch of engineering that designs and analyzes structures, such as buildings and bridges, with earthquakes in mind. Its overall goal is to make such structures more resistant to earthquakes. An earth ...
*
EPC (contract) EPC may refer to: Government and politics * Eastern Provincial Council, in Sri Lanka * European Policy Centre, a Belgian think tank * European Political Community (1952), a former political organization proposed in 1952 * European Political Comm ...
*
International Building Code The International Building Code (IBC) is a model building code developed by the International Code Council (ICC). It has been adopted for use as a base code standard by most jurisdictions in the United States. The IBC addresses both health and sa ...
*
Quality, cost, delivery Quality, cost, delivery (QCD), sometimes expanded to quality, cost, delivery, morale, safety (QCDMS), is a management approach originally developed by the British automotive industry. QCD assess different components of the production process an ...
- trilemma of project *
Site manager In the construction industry, site managers, often referred to as construction managers, site agents or building managers, are responsible for the day-to-day on site running of a construction project. Site managers are required to keep within the ...
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Structural engineering Structural engineering is a sub-discipline of civil engineering in which structural engineers are trained to design the 'bones and muscles' that create the form and shape of man-made structures. Structural engineers also must understand and cal ...
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Work breakdown structure A work-breakdown structure (WBS) in project management and systems engineering is a deliverable-oriented breakdown of a project into smaller components. A work breakdown structure is a key project deliverable that organizes the team's work into ...
* Index of construction articles


References


Further reading

* Halpin, Daniel W., Construction Management, Wiley, Third Edition. * Rawlinsons Australian Construction Handbook, annual editions {{DEFAULTSORT:Construction Managementj Construction Building engineering Construction and extraction occupations Project management by type