CM services manage the entire project on behalf of the Client through involvement in every stage of the construction process. In other words, under CM service contract, the service provider act as an agent or coordinator with the delegated authority by the Client. Construction Manager, as a total solution provider, shall equipped with knowledge in the newest construction method, market analysis, cost management, schedule management and etc. and provide professional services throughout planning, design, construction/supervision and O&M stages of a project. Thus, unlike conventional method of managing a construction project, CM is more active and professional in terms of aiming for early completion, cost reduction and quality improvement.
The definition of CM can be differ as below from the Project Management and Program Management
Program Management is applied when the project is composed of multiple projects and requires comprehensive management to accomplish the project objectives as a whole. The management scope covers from Feasibility Study to Operation & Management.
Project Management scope covers from planning, design, procurement, construction and to Test & Commissioning for an individual project, throughout the whole project life-cycle.
CM service started as managing only the construction stage of a project and the idea of it came to the industry much more earlier than Project Management. It may also be referred to Construction Project Management covering the same scope as Project Management.
Program Management is much more comprehensive than to Project Management and CM. In other words, In terms of service hierarchy, Project Management, CM, Design-Build(D-B) and typical turn-key contracts fall under the Program Management service. Likely, CM, D-B and turn-key contracts fall under the Project Management service.
Unlike any other form of contract, CM contract can be varied in types upon Client’s requirement and purpose. Generally, CM can be categorized in two types. One is Agency CM and the other is CM for fee but many variation forms exist according to Roles and Responsibility.
As an agent to the Client, controls and manages the construction project throughout planning, design, procurement, construction to operation & maintenance stage within budget, schedule and quality standard. Client can minimize its’ management unit by utilizing CM to its’ project.
Contrary to Agency CM, CM for fee type manages the construction project where Client is in contract with multiple specialty contractors on behalf of the Client. Thus, a team is formed composed of Client, Architect and Construction Manager.
In detail, Construction Manager reviews the design in order to save cost and schedule, provides procurement/bidding procedures and controls the overall process of construction project.
By introducing CM to the turn-key project, Client may expect to bring in transparent cost record, minimization of risk, and enhanced quality standard. Especially, in case of change order requested by the Client, CM can meet the Client’s needs by reviewing change order proposals to seek for cost efficient ways.
CM is spontaneous management method to deal with various problems that can arise from the construction industry. What CM can offer is illustrated as below.
Construction Manager assists the Client in maintaining consistency to the overall project management utilizing the management know-how and professional experiences.
Construction Manager ensures to reduce the cost and to create the best building through Value Engineering and Constructability Review.
‘Fast Track’ is a method used to save time and cost and to bring flexibility to the project by overlapping the design and construction stage process. Client can expect to bring predictability to the project.
With in-depth knowledge and similar project experiences, Construction Manager is capable of verifying the cost plan and managing change orders to ensure the project is completed within budget.
Maximize management efficiency by delivering critical project information after analyzing integrated information in advance.
Prevent failure from occurring through technical advisory service that enables precise decision making.