Construc on Management
The prac ce of professional management applied to the planing, design, and construc on of
projects, from incep on to comple on, for the purpose of controlling me, cost, and quality
Construc on Contract Administra on Objec ves
To control: me, cost, quality, informa on flow and to sa sfy the Owner's goals and
objec ves for the project
Design Bid Build Advantages
Widely applicable, understandable, owner retains control, owner "knows" the cost prior to
the start of Construc on
Design Bid Build Disadvantages
Rela vely slow, owner is liable for the design, constructability issues, adversarial
rela onships fostered
Mul ple Prime Advantages
Increased Owner control, work easily fast-tracked, save general contractor markups, some
states require it
Mul ple Prime Disadvantages
Owner has risk of controlling me and coordina on, mul ple accountability for
performance, unknown "final" cost at construc on start, same owner risks as tradi onal
approach
CM at Risk Advantags
Well-suited for fast-tracking, contractor (and subcontractor) input on design alterna ves,
be/er cost info, permits "picking" of the builder
CM at Risk Disadvantages
Change of CM's accountability a0er, GMP (guaranteed maximum price) is signed, tempted to
sign GMP "too soon", varia ons in procurement methods
Design-Build Advantages
Accountability for project delivery, reduced disputes, can cut me and cost, builder can have
input to design/constructabibility, budget established early on
Design-Build Disadvantages
Early defini on of the program required, owner's loss of control during design, poten al for
quality to be compromised
, What is True concerning delivery methods?
delivery methods are the forms of organizing the construc on project, all delivery methods
have dissimilar risks
What delivery method can reduce and cut me the most when compared to other
methods?
Design-Build
What delivery method allows the contractor(s) to provide input on design alterna ves?
CM at Risk and Design-Build
With this delivery method, the owner holds contracts with the designer and several
contractors. The CM assists in scheduling the contractors.
Mul ple Prime
Price Compe vely Bid Contract Advantages
Well-known, compe ve, fair and transparent, produces "lowest" price, contractor assumes
risk for comple on
Price Compe vely Bid Contract Disadvantages
No considera on of any qualifica on except price, work must be well specified
Nego ated Price Contract Advantages
Best value selec on, freedom to pick subcontractors, easier choice of alterna ves,
opportunity NOT to pay for design errors
Nego ated Price Contract Disadvantages
Poten al abuse, may not be legal, requires exper se on the part of the owner (or their
consultants)
When is a reimbursable contract most appropriate and best suitable? (Fixed vs.
Reimbursable)
Unknown quan es of work, risky work, work that is impossible to define
General Contractor Reimbursement Methods
Lump sum, GMP (Guaranteed Maximum Price), Unit Price, Cost Plus a Fixed Fee, Time and
Materials
What are the four main delivery Contract Methods?
Design Bid Build (Tradi onal Method), Mul ple Prime, CM at Risk, Design Build
The prac ce of professional management applied to the planing, design, and construc on of
projects, from incep on to comple on, for the purpose of controlling me, cost, and quality
Construc on Contract Administra on Objec ves
To control: me, cost, quality, informa on flow and to sa sfy the Owner's goals and
objec ves for the project
Design Bid Build Advantages
Widely applicable, understandable, owner retains control, owner "knows" the cost prior to
the start of Construc on
Design Bid Build Disadvantages
Rela vely slow, owner is liable for the design, constructability issues, adversarial
rela onships fostered
Mul ple Prime Advantages
Increased Owner control, work easily fast-tracked, save general contractor markups, some
states require it
Mul ple Prime Disadvantages
Owner has risk of controlling me and coordina on, mul ple accountability for
performance, unknown "final" cost at construc on start, same owner risks as tradi onal
approach
CM at Risk Advantags
Well-suited for fast-tracking, contractor (and subcontractor) input on design alterna ves,
be/er cost info, permits "picking" of the builder
CM at Risk Disadvantages
Change of CM's accountability a0er, GMP (guaranteed maximum price) is signed, tempted to
sign GMP "too soon", varia ons in procurement methods
Design-Build Advantages
Accountability for project delivery, reduced disputes, can cut me and cost, builder can have
input to design/constructabibility, budget established early on
Design-Build Disadvantages
Early defini on of the program required, owner's loss of control during design, poten al for
quality to be compromised
, What is True concerning delivery methods?
delivery methods are the forms of organizing the construc on project, all delivery methods
have dissimilar risks
What delivery method can reduce and cut me the most when compared to other
methods?
Design-Build
What delivery method allows the contractor(s) to provide input on design alterna ves?
CM at Risk and Design-Build
With this delivery method, the owner holds contracts with the designer and several
contractors. The CM assists in scheduling the contractors.
Mul ple Prime
Price Compe vely Bid Contract Advantages
Well-known, compe ve, fair and transparent, produces "lowest" price, contractor assumes
risk for comple on
Price Compe vely Bid Contract Disadvantages
No considera on of any qualifica on except price, work must be well specified
Nego ated Price Contract Advantages
Best value selec on, freedom to pick subcontractors, easier choice of alterna ves,
opportunity NOT to pay for design errors
Nego ated Price Contract Disadvantages
Poten al abuse, may not be legal, requires exper se on the part of the owner (or their
consultants)
When is a reimbursable contract most appropriate and best suitable? (Fixed vs.
Reimbursable)
Unknown quan es of work, risky work, work that is impossible to define
General Contractor Reimbursement Methods
Lump sum, GMP (Guaranteed Maximum Price), Unit Price, Cost Plus a Fixed Fee, Time and
Materials
What are the four main delivery Contract Methods?
Design Bid Build (Tradi onal Method), Mul ple Prime, CM at Risk, Design Build
