5. ICESR 01-12-2011 - Laserfiche WebLink

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L ~i In one fotnn of Construction i47anagement, the owner contracts separately with an architect, a Construction Manager as Agent t'C~l-Agent) and-throu,h a competitive bicl process-one or more prime contractors. The Chi-Agent provides early cost estimatiatg, scheclulin~ and assistance to the owner Ihrougltout the bidding and construction phases of the project. Additional cost control and condensed scheduling are: the two main benefits of this method. The Ci~i-Agent approach can be be~neticial for large. complex projects where conshl-ction alter- natives and solutions can positively impact the overall budget. The Construction R9anaser-Agent pe-•#orms as an additional representative of the owner's interests. Advantages of Construction Manager-Agent 1, C\rt-Agent with consU•uction expertise gives the owner an agent, in aciclition to the architect, to supervise the project, reducing the owner's management burden in la-~e or complicated projects. 2. CA7-Agent's project scheduling and capability to competitively fast track route items may speed process and save owner money 3. CM-Agent's cost esti-nating and construction expertise at design phase assists in monitoring constntction costs. Disadvantages of Construction Manager-Agent . CA9-Agent is added cast. Osv-ter is at risk for final construction cast, actual construction costs are not l:novvn until design is complete. 3. \~ultiple pri-ue contracts increase paperwork and administrative time, and increase potential for construction disputes and claims. 4. Civt-Agent typically has Less lout to resolve design-construction issues than a general contractor and serves only as a mediator. In the second form of Constnrction Management, the owner contracts sepa- rttely with an architect and a Constn-ction ~tana;*er at Rill: or Constriction Manager as Contractor (C119-Cunt-~tcto-•). In this vendor form, the constn~ction manager is "at risk" since he provides both contractor services and construction ntanagentent services for the project. ConsU'uction Contractor services are prop°ided to the owner based on a guaranteed maximum pt7ce, fixed price, cost plus or other means of defining a contract. Tltis creates a major cont7ict of interest since the CA9 is no longer' acting as an a~~ent providing profes- sional services to the owner, but nrnv is a vendor delivering a contractually defined product to the owner for a price. Advantages of Construction Manager as Contractor (vendor) I. Architect still acts as agent protecting ost'ner's interest and architect's early involvement with owner addresses building dualoty and function. 2. Early cost commitment gives owner project cost security. 3. At Risk entity is responsible for managing constn-etion process and has more clout with suhrontractors. 4. Cat-Contractor can reduce owner's burden in management of large or complicated projects. 5. C\7-Co-tU•actor reviews project For ronsu'uctability, cost and schedule, potentially reducing change orders and delays. 6. Fast-u•acking and multiple prime contracts may speed constn-clion. Disadvantages of Construction Manager as Contractor (vendor) 1. 117anagenient role of CA7-Conv-actor is added cost. 2. Cat-Contractor may provide less building than a bid appt'aach to protect margin of profit. Major coat1ic[ of interest with role as both construction manager and contractor. DESIGN-BID-BUILD METHOD WITH CONSTRUCTION MANAGER•CON7RACTOR (CIN AT RISKI i Owner:.. ;'..... ~ iGonSl rucilon Manager- :.Architect x~ ~ ' • Contractor.~:~ T r # F ~ Consulian s . ~ ,~ ~ _ i ~ `Multiple; ~ f ~ Fie Contractors`