What is Construction Management?

One of the best definitions I have come across over the years comes from Charles Patrick's Construction Project Planning and Scheduling. According to Patrick, "Construction Management (CM) entails the planning, scheduling,  evaluation, and controlling of construction task or activities to accomplish specific objectives by effectively allocating and utilizing appropriate labor, material, and time resource in a manner that minimizes cost and maximizes customer/owner satisfaction.  

Ok, now that you know what Construction Management is, you will need to know what project delivery methods are; this will hep to have a good understanding of how using Construction Management as a project delivery can add value to your construction project. In the construction industry we have three Project Delivery methods that are wide spread and one that is starting to be used more often.
  1. Design-Bid-Build
    1. Design-Bid-Build is commonly referred to as the traditional method of project delivery. Under this project delivery method the designer/owner is responsible for the design and specifications, and the contractor is responsible for  correctly interpreting those plans into a beautiful building. This method of delivery has seen its share of lawsuits, and has plenty of court judgments from both federal and state courts to develop construction risk management strategies. There are two contracts under this delivery method, one between designer and owner,and one between contractor and owner.
  2. Design-Build
    1. This method has grown significantly over the past ten years. It is often referred to as a single source project delivery method, and is the closest thing to a master builder. Under this project delivery there is one contract between design-builder and owner, and the designer-builder shoulders all the risk for design defects, quality of work, cost, and timely completion.
  3. Construction Management
    1. Construction Management as a project delivery method offers two options
      1. Agency Construction Management-The Construction Management Association of America defines Agency Construction Management as a fee based service where  the construction manager acts in the owners best interest at every stage of the project. In this case, the construction manager offers advice uncolored by any conflicting interest because the construction manager does not perform any of the actual work.
      2. At Risk Construction Management-The Construction Managers Association of America defines the At-Risk Construction Management method as an option that entails a commitment by the Construction Manager  to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as a consultant during development and design phases, but does the work of a general contractor during the construction phase.
  4. Integrated Project Delivery -
Pricing
  1. Agency CM
    • Residential Construction - 
      1. $63 hr. Regular Time
      2. $94.43 hr. Overtime and Sundays
      3. $126 hr. Holidays
  2. At-Risk CM
    • Residential Construction
      • Hourly Rates Listed above (job specific management labor)  + 10% Overhead and 10% Profit For Entire Cost Of Project.