Construction Manager Agency
Contractor Entity:
Construction Manager Agency (pureCM, Program Manager)
Agency Construction Management is a management process whereby the owner utilizes a construction manager (CM) as its principal agent to advise on or manage the process over the life of the project, or during specific phases of the project. These services may include cost management, detailed estimating, constructability reviews, milestone and critical path scheduling, and value analysis. The CM also acts as the owner’s representative with the rest of the project team, acting as the point of contact for the designer, contractors, and other specialty consultants engaged in the project by the owner.
This construction management variation will allow the use of multiple-prime contracts where the owner contracts directly with the specialty (trade) contractors who bid on each bid package.
This process gained favor in part as another method of "fast-tracking" construction. Work in each construction discipline is bid separately, allowing the flexibility of awarding construction contracts on the first portions of the project as soon as the respective aspect of design is completed. This fast-track approach can be a highly desirable feature of this method of procurement when time of performance is critical.
Another advantage of this process is that the owner has the potential to realize savings by directly procuring major material items, such as structural steel or major mechanical equipment, and avoiding contractor mark-ups.
Contract Basis:
Percentage or Fixed Fee-- Agreement to perform the services for a percentage or fixed fee with the qualified general contracting organization providing the construction leadership to the Construction Team. The Construction Team is composed of the owner, architect/engineer, and the construction manager and shall be engaged from the beginning of programming design throughout the completion of construction.
Selection Criteria:
Qualifications Based & Best Value-- The owner should make a careful objective review of the qualifications of interested general contractors, giving due consideration to their experience in working with architects and engineers on projects of similar character during all stages of the design process and make an award to the one best qualified whose fee is acceptable.
Design/Construction Sequencing:
Fast Track-- Some stages of construction precede the completion of design work. For instance, civil site works might be initiated before the final architectural building plans are approved. This method is primarily used when time savings is a critical goal of the building program.
Advantages:
- Creates a "team" with the owner, construction manager, and architect/engineer, before the design process begins. Construction manager is available to give advice on site selection, construction feasibility, cost, and scheduling.
- Time and cost saving by starting construction before all plans are complete.
- Ability to competitively bid all material and trade contracts for the project, while at the same time having a general contractor with expertise to act as construction manager on the team from the inception of design through final completion and acceptance of the project.
Disadvantages:
- Final cost not guaranteed.
- Owner assumes the responsibility to select a construction manager experienced in scheduling, cost control and plan and specification review. The CM should also have management experience to act as a team member and be qualified to direct the work of the individual trade contractors.
