Construction management
A bid tells the owner how much money they should expect to pay the construction management company in order for them to complete the project.
[4] The pre-construction stage begins when the owner gives a notice to proceed to the contractor that they have chosen through the bidding process.
A notice to proceed is when the owner gives permission to the contractor to begin their work on the project.
[4] The procurement stage is when labor, materials and equipment needed to complete the project are purchased.
Subcontractors are contractors who specialize in one particular aspect of the construction work such as concrete, welding, glass, or carpentry.
[4] The construction stage begins with a pre-construction meeting brought together by the superintendent (on an American project).
The pre-construction meeting is meant to make decisions dealing with work hours, material storage, quality control, and site access.
Proper preparation of the information necessary for payment processing can help the contractor financially complete the project.
[4] When construction vehicles are driving around a site or moving earth, a lot of dust is created, especially during the dryer months.
Project meetings take place at scheduled intervals to discuss the progress on the construction site and any concerns or issues.
Under a traditional contract, construction cannot begin until after the design is finished and the project has been awarded to a bidder.
In a design-build contract the contractor is established at the outset, and construction activities can proceed concurrently with the design.
The third major advantage is that the design-build contractor has an incentive to keep the combined design and construction costs within the owner's budget.
This includes reviewing the builder's work and ensuring that the products and methods meet specifications and codes.
The construction industry typically includes three parties: an owner, a licensed designer (architect or engineer) and a builder (usually known as a general contractor).
A primary role of the CM is to ensure the terms of the Construction Contract are fulfilled by the Contractor.
A CM firm is typically hired as a personal or professional, qualifications-based service rather than as a bid.
Costs are based on a guaranteed maximum price or fixed price, and substantiated by level of effort or staffing plan that identifies the hours per service task to be provided, and based on individual billable hourly rates of proposed project-assigned staff.
As time progresses beyond the pre-design phase, the CM's ability to effect cost savings diminishes.
The agency CM can represent the owner by helping select the design and construction teams and managing the design (preventing scope creep), helping the owner stay within a predetermined budget with value engineering, cost-benefit analysis and best-value comparisons.
CM at-risk is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP).
CM at-risk is a global term referring to the business relationship of a construction contractor, owner and architect (or designer).
[13] An at-risk delivery method is best for large projects—both complete construction and renovation—that are not easy to define, have a possibility of changing in scope, or have strict schedule deadlines.
Additionally, it is an efficient method in projects containing technical complexity, multi-trade coordination, or multiple phases.
