Construction Management (At Risk): CM as GC
In the form of construction management known as at risk, the owner selects a construction manager, as well as an architecture and engineering firm, who then work together as a team to advise, coordinate, and inspect during design and construction. In addition, the construction manager acts a the general contractor for the project.
Typically, the construction manager receives a fee based on the total cost of the project and at the owner’s request may execute a guaranteed maximum price for the construction work.
The construction management firm advises on the construction process, feasibility, and possible cost and time savings through value engineering and other analysis.
In its role as general contractor, the construction management firm signs all agreements with subcontractors.
Owner Advantage #1: Save Money
- The construction management firm provides input on cost during the design phase, allowing stakeholders to evaluate the cost of designs during conceptual development.
- Because people are working as a team, professional services fees tend can be more effectively managed and determined early in the process. Professional services include architectural and engineering fees, contractor fees, and legal fees.
- Construction costs are minimized, thanks to the construction manager’s input on the effectiveness of the means, methods, and techniques to be employed during construction.
- The fee for the construction management firm is clear and determined early in the process.
Owner Advantage #2: Save Time
- Fast tracking and a reduced schedule are possible, because construction activities can begin before all aspects of the design are completed.
- Project completion dates are realistic and less likely to be delayed.
Owner Advantage #3: Get Better Service
- The owner can benefit from special services: feasibility study, life-cycle cost analysis. and value engineering.
Owner Advantage #4: Experience Better Relationships Through Teamwork
- Stakeholders in the process work together as a team to complete design and construction for the benefit of the owner, rather than adopting adversarial roles.
- Stakeholders produce better results thanks to the team approach to completing the project.