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Design build cost defined early when bidding good

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Unformatted text preview: ion of the project beginning Typically CM selected based on quality Many variations are possible in the delivery method depending mostly on when the method management team is hired and its skills management General Characteristics General „ Started in late 1960s World trade center „ Madison Square Garden „ „ „ „ May recommend A/E Check billings Specific CM firms tend to be quite sophisticated Warning: Many GCs claim CMs CMs „ “design CM”, “construction CM” “owner CM” „ Tasks Tasks „ Preconstruction „ „ Constructability, value eng, estimation, alternatives, schedule, financing, manage designer, early schedule, procurement procurement Field supervision „ QA, Targets met, invoice checking, coordinate work of contractors, M&E, change orders, payments, of claims, inspections for design requirements, claims, sometimes safety sometimes CM General Advantages CM „ Involvement in design allows better Knowledge of price early own „ Eliminates risks in design before bids „ Constructability, value engineer. reasoning from start „ Working construction constraints into design plans „ „ „ „ Allows flexibility in the Schedule (Fast tracking ) Can select CM based on quality Really familiar with plans before price/get bids CM General Disadvantages CM „ „ Don’t know total cost when start construction Potential conflicts with other parties Designer „ Subcontractors „ (Where applicable) GC „ Pure (“Agency”) Pure Construction Management Construction Owner C/M Trade contractor A/E Trade contractor Contractual Relationship Communicational Relationship Trade contractor Pure Construction Management Pure „ „ „ „ „ „ „ Great Flexibility in the Schedule and for Changes Changes Market Competition for subcontracts Fiduciary Relationship with the Contractor Small Financial Risks of PCM and High Risk of Loss of Reputation Loss PCM Generally Paid a Fixed Fee (professional) Take over work of designer, GC, owner PCM as Facilitator/Mediator in Conflicts Advantages Pure CM Advantages „ „ „ „ „ Great Flexibility for Changes CM more objective, less partial Less conflict between owner and CM Small Financial Risks of PCM Have both „ Cost competition (for subcontractors) „ Often 5-8% savings for dealing directly with subs „ „ „ „ Fiduciary relationship with GC One common reference point: The CM Owner can get rid of particular subcontractor Lessens owner’s responsibilities Disadvantages Pure CM Disadvantages „ „ Lower incentive for CM to reduce price, time Owner alone takes risk on cost of project „ „ „ „ No guarantee from CM! Participants must all be cooperative and well communicating communicating High Risk of Loss of Reputation All parties must be committed from the beginning beginning Lessens Owner’s Responsibility Lessens „ E.g. „ „ „ „ „ „ „ „ „ Project control Job meetings Management meetings Reports (operational and annual) Administrative tasks Budgets Drawing approval Oversight Quality assurance Central Artery / Big Dig Central http://www.masspike.com/bigdig/index.html Central Artery / Big Dig Central „ „ „ „ Most complex highway project in American history history The project consist in building 161 lane miles of urban highway - about half underground in of a 7.5-mile corridor 7.5 Planning for the Central Artery/Tunnel Project began in 1982 Project Congress approved funding and the project's basic scope in April 1987 basic http://www.masspike.com/bigdig/index.html Central Artery / Big Dig Central For the Fort point channel: „ Notice to proceed was granted to Modern Continental on March 7 1997 Continental „ Expected date of completion: March 13 2002 „ Estimated cost: 301,377,284.10 $ „ Modified estimated cost: 403,929,276$ „ Modified date to completion: December 2004 „ Engineers + consultants = 100 „ Workers on the site = 800 „ Priorities = schedule- cost- technical http://www.masspike.com/bigdig/index.html Project Organization Project 9 Project Delivery Systems (most common) 9Traditional 9Pure Construction Management ¾ Construction Management at risk „ „ Design / Build Summary Construction Management at Construction Risk Risk Owner C/M Trade contractor A/E Trade contractor Contractual Relationship Communicational Relationship Trade contractor Construction Management at Risk Construction „ CM usually Guaranteeing Maximum Price: usually Guaranteeing GMP to give the owner security that the GMP project will be built within budget project Often set at 95% of design „ This is a big difference from pure CM „ Fee typically 10-15% „ „ „ „ „ Reduced Owner Risk Risk-wise, ½ between the DBB and the PCM System (VERY similar to GC hired early) System Contractual Relationships betw. CM&subs betw CM&subs Performance bonds typical Advantages CM at Risk Advantages „ „ „ Reduced Owner’s Risk CM at risk usually goes with Guaranteed Maximum Price (GMP) Maximum Contractual Relationships between CM and Trade Contractors Disadvantages CM at Risk Disadvantages „ „ „ The GMP is a defined price for an undefined product product Bad during design: Design pressure Tension CM hired early: more price risk „ CM hired late: less value during design „ „ „ „ CM is no longer impartial (may argue against changes b/c of own interest) changes b/c Risk of adversarial relationship The contract can be hard to enforce „ „ „ „ „ „ „ Albert and Barrie Zesiger Sports Albert Zesiger and Fitness Center and Groundbreaking : October 2...
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