Throughout the design and construction process, a construction management firm like Creative Builds will be a partner, working in a collaborative process with the owner and in a spirit of teamwork with the architect and contractors.
There are two forms of construction management: construction management as advisor, where the construction manager is an agent of the owner; and construction management at risk, where the CM is legally responsible for delivering the project on time and on budget.
Construction Management as Advisor
In the CMA project delivery method, also known as pure construction management, the CM acts as an extension of the owner’s staff and the general contractor role is eliminated. In this scenario the owner, rather than the GC or construction manager at risk, holds all subcontracts. Essentially, each subcontractor becomes a prime contractor and is responsible for cost, schedule, quality and safety on the project. The CM oversees these tasks on the role as a consultant. The CM competitively bids the different elements of construction to trade contractors or subcontractors, such as electrical, mechanical, plumbing, framing, etc.
Construction Management at Risk
The CMR method of project delivery is increasingly being utilized by private and public sector clients, since it blends assessment of pricing, scheduling and qualifications while limiting the owner’s risk. This method features a cohesive three party team of owner, architect-designer and the firm serving as CM. Under separate contracts, both the architect-designer and CM are chosen by a qualifications based selection process.
The CMR firm enters into a guaranteed maximum price contract or cost plus fee with the owner, which assures the project will be constructed for no more than the amount designated in the project budget, and no longer than the agreed completion date. Sometimes a GMP can be specified to provide peace of mind to the owner. Budget overruns on the contracted scope of work in excess of the contracted amount could be assumed by the CMR.
Getting past budget concerns allows the project to proceed with regular open communication and the knowledge that the CM always has the owner’s best interests in mind. A previously established scope of work designates pre-construction services, such as estimating, scheduling, constructability reviews, value analysis, specification review and quality control review, that save the owner both time and money.
Vendors and subcontractors can be prequalified based on bonding, experience and performance requirements. In the case of public sector projects, this exercise can greatly enhance the participation by local suppliers and subcontractors who will be included in the competitive bidding. Contracts with the subcontractors and vendors are then held with the CM firm, who assumes responsibility for their performance.
Owner Advantages
With either construction management method, the owner saves money, saves time, receives better service and experiences better relationships through teamwork.
At Creative Builds, we know construction management. We partner with select architects, designers and construction professionals from throughout San Diego to create a cohesive team to meet the unique demands of any given project.