General Contracting &
Construction Management Services Since 1916
P.O. Box 535, Fairchance, PA 15436
1 (724) 564-7485
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INTRODUCTION
The following information is taken from The Association General Contractors of America Booklet, AGC 540.
The General Contractor has traditionally been the manager of the construction process in whatever form that process has taken and will continue this role. However, the complexities of today's construction techniques and the difficulties in managing the ever-increasing number of highly-specialized subcontractors plus the imposed time and budget constraints of the project occasionally require new approaches to the methods historically used by the General Contractor in his management function.
Construction management has been used successfully for many years by owners and contractors, especially in the private sector. This method allows the owner and the architect to have available to them the services of the General Contractor not only during the construction phase but during the design phase as well.
1. What is Construction Management?
It is an effective method of satisfying an Owner's building needs. It treats the project planning, design and construction phases as integrated tasks within a construction system. These tasks are assigned to a Construction Team consisting of the Owner, the Construction Manager and the Architect. Members of the Construction Team ideally work together from project inception to project completion, with the common objective of best serving the Owner's interests. Interactions between construction cost, quality and completion schedule are carefully examined by the Team so that a project of maximum value to the Owner is realized in the most economic time frame.
2. What is a Construction Manager?
The Construction Manager is the qualified general contracting organization which performs the Construction Management under a professional services contract with the Owner. The Construction Manager, as the construction professional on the Construction Team, will work with the Owner and the Architect from the beginning of design through construction completion, and provide leadership to the Team.
Construction Management may take different forms depending upon the requirements of the Owner, the requirements of various administrative agencies that may be involved with the Project, and the requirements of the law in the jurisdiction of the Project. Depending on the Owner's requirements noted above, the contractors may either have subcontractors with the Construction Manager or prime contracts directly with the Owner. There may or may not be a guaranteed maximum price, and the Construction Manager may or may not be permitted to perform work with his own force.
3. What is a Construction Team?
The Construction Team is the group responsible for the planning, design and construction of the Project. Its members are the Construction Manager, the Architect and the Owner. It is important to the success of the Project that the owner assign to the Construction Team competent personnel with the authority to make timely decisions concerning budget and program. The Architect should be willing to serve as a cooperating member of the Construction Team using the Construction Management approach. The responsibilities and duties of the Construction Manager are described below.
4. Why is the Construction Team formed?
The owner believes that his interest will best be served if he has available to him, from the very conception of a project, the services of a Construction Manager in addition to the services of a competent Architect. These persons will then work together, under the Owner's direction, to develop the best and most economical construction program. The Construction Manager's knowledge and experience are of particular value to the Owner in the following areas:
a. Involvement of the Construction Manager during the planning and design provides the Owner with reliable current information about probable costs and schedules.
b. The Construction Manager can start construction and order long-delivery material items before the total design is completed, thus allowing the Owner beneficial use of the Project at the earliest possible date, and protecting him against rising costs in an inflationary market.
c. The Construction Manger and the Architect can engage in value analysis of alternative design and construction procedures from the early stages of design development. The analyses will enable the Architect to make early major design decisions based upon accurate information relative to cost and time as well as functional and aesthetic considerations.
5. How is the Architect Member of the Construction Team selected?
The Architect may be selected in the conventional manner. He will work closely with the Construction Manager and the Owner on the Construction Team and must be willing to support the procedure.
6. What does the Construction Manager do during the Planning and Design Phases?
a. He will consult with, assist and make recommendations to the Owner and Architect on all aspects of planning for the Project's construction.
b. He will review the Architectural, Civil, Mechanical, Electrical and Structural plans and specifications as they are being developed and advise and make recommendations with respect to such factors as construction feasibility, possible economies, availability of materials and labor, time requirements for procurement and construction and project costs. He will provide input for life cycle cost studies and energy conservation requirements. He will assist in the coordination of all sections of the drawings and specifications, without assuming any of the Architect's normal responsibilities for design.
c. He will make budget estimates based on the Owner's program and other available information. The first estimate may be a parameter type and subsequent estimates will be in increasing detail as quantity surveys are developed based on developing plans and specifications. He will continue to review and refine these estimates as the development of the plans and specifications proceeds, and will advise the Owner and the Architect if it appears that the budgeted targets for the Project cost and/or completion will not be met. He will prepare a final cost estimate when plans and specifications are complete. On most projects, the General Contractor - Construction Manager, because of his financial responsibility, will be able to provide a guaranteed maximum price at the time the Construction Team has developed the drawings and specifications to a point where the scope of the Project is defined.
d. He will recommend for purchase and expedite the procurement of long-lead items to ensure the delivery by the required dates.
e. He will make recommendations to the Owner and the Architect regarding the division of work in the plans and specifications to facilitate the bidding and awarding of contracts, taking into consideration such factors as time of performance, availability of labor, overlapping trade jurisdictions, and provisions for temporary facilities. He will make a market survey and solicit the interest of capable contractors.
f. He will review plans and specifications with the Architect to eliminate areas of conflict and overlapping in the work to be performed by the various contractors.
g. As working drawings and specifications are completed, he will take competitive bids on the work. After analyzing the bids thus received, he will either award contracts or recommend to the Owner that such contracts be awarded. The exact procedure will depend upon his contract with the Owner.
h. At an early stage in the Project, he will prepare a progress schedule for all project activities by the Owner, Architect, Contractors and himself. He will closely monitor the schedule during both the design and construction phases of the Project and be responsible for providing all parties with periodic reports as to the status of each activity with respect to the Project schedule.
7. What does the Construction Manager do during the Construction Phase?
The Construction Manager assumes responsibility for managing the Project during construction in much the same way as the General Contractor traditionally has done.
a. He will maintain competent supervisory staff to coordinate and provide general direction of the work and progress of the contractors on the Project.
b. He will observe the work as it is being performed, until final completion and acceptance by the Owner, to assure that the materials furnished and work performed are in accordance with working drawings and specifications.
c. He will establish an organization and lines of authority in order to carry out the overall plan of the Construction Team.
d. He will establish procedures for coordination around the Owner, Architect, Contractors and Construction Manager with respect to all aspects of the Project and implement such procedures. He will maintain job sire records and make appropriate progress reports.
e. In cooperation with the Architect, he will establish and implement procedures to be followed for expediting and processing all shop drawings, samples, catalogs, and other project documents.
f. He will implement an effective labor policy in conformance with local, state and national labor laws. he will review the safety and EEO programs of each contractor and make appropriate recommendations.
g. He will review and process all applications for payment by involved contractors and material suppliers in accordance with the terms of the contract.
h. He will make recommendations for and process requests for changes in the work and maintain records of change orders.
i. He will furnish either with his own force or others all General Condition items as required.
j. He will perform portions of the work with his own forces if required by the Owner to do so.
k. He will schedule and conduct job meetings to ensure the orderly progress of work.
l. When the Project is of sufficient size and complexity, the Construction Manager will provide data processing services as may be appropriate.
m. He will refer all questions relative to interpretation of design intent to the Architect.
n. He will continue the close monitoring of the Project progress schedule, coordinating and expediting the work of all of the contractors and his own forces and provide periodic status reports to the Team.
o. He will establish and maintain an effective cost control system, monitoring all Project costs. He will schedule and conduct appropriate meetings to review costs and be responsible for providing periodic reports to the Team on cost status.
8. What qualifications should an Owner consider when selecting a Construction Manager.
The Construction Manager will be selected on the basis of an objective analysis of his professional general contracting qualifications and major considerations will be given to:
a. Demonstration of his ability to perform projects comparable in design, scope and complexity.
b. The recommendation of Owners for whom the contractor has performed Construction Management.
c. His financial strength, bonding capacity, and ability to assume a financial risk if the Owner requires it.
d. The qualifications of in-house staff personnel who will manage the Project.
e. His demonstration of successful management systems which have been employed by the Construction Manager for the purpose of conceptual estimating, budgeting, scheduling and cost controls.
f. The Construction Manager's knowledge of and ability to implement the most effective overall insurance program of the Project.
g. The Construction Manager's resources to provide the requisite services in the design and construction phases for the technical portions of the project as well as the architectural and structural portions.
h. The Construction Manager's capacity to perform work on the Project with his own forces if it is advantageous to the Project.
9. How is the Construction Manager of the Construction Team selected?
The selection of the Construction Manager should be based upon the ability of the prospective Construction Manager to perform the services required of him and his ability to meet procedural requirements of administrative agencies that may be involved with the Project. Most importantly the selection should be based on an objective appraisal of the prospective Construction Manager's professional and general contracting qualifications to perform the Construction Manager functions as a member of the Construction Team. The fee should be one of the factors considered in making the selection, but it should not be the only one.
