What Is a Construction Manager?

Fact Sheet: Licensing of Construction Managers

The CMAA Board of Directors has tasked its Government Affairs Committee with the job of developing a basic fact sheet or “Frequently Asked Questions” document on the subject of CM licensing.

The intent is for this document to be ready for use in any state in which legislation may be introduced to license CM. The document should provide basic background on the subject and describe CMAA’s position.

The following is the Committee’s draft of this FAQ as of May 10, 2011, submitted in preparation for the Board meeting of May 14, 2011. Fact Sheet: Licensing of Construction Managers

What is a Construction Manager?

Idaho, the only state that currently licenses Construction Managers, provides the following definition in its Code:

"Construction management services" means representation of an owner in public works construction, as defined in section 54-1901(2)(c), Idaho Code, by a person with substantial discretion and authority to plan including scheduling, estimating and approval, coordinate, manage or direct phases of a project for the construction, demolition, alteration, repair or reconstruction of any public work. This definition shall not include general contracting services provided by public works contractors who actually perform the work of construction, alteration, repair or reconstruction. This definition shall not include services for which the laws of this state require a person to be licensed as an architect or registered as a professional engineer, nor shall it include services traditionally and customarily provided by licensed architects or registered professional engineers.” http://legislature.idaho.gov/idstat/Title54/T54CH45SECT54-4503.htm

What is the goal of licensing?

“The traditional justification for licensing design professionals is that because they provide valuable and sensitive services to the public – along with doctors, lawyers, etc. – the government should provide protection to the public beyond that provided by the free market. Even more significant is the fact that the public health and safety is directly affected as a result of architectural and engineering work undertaken on a project.”

-- From the 2011 State By State Review of Licensing Requirements Affecting Construction Managers, published by CMAA.

Similarly, the Idaho Code provides the following justification for licensing:

“54-4502. Legislative intent. In order to protect the public welfare and to promote the highest degree of professional conduct on the part of persons providing construction management services, the provisions of this chapter provide for the licensure of individuals and regulation of persons providing construction management services for public works projects.”

What license(s) do Construction Managers need now?

Only one state, Idaho, currently requires a specific license to practice CM, and the Idaho requirement applies only to practitioners seeking to work on state projects. The Idaho statute is The Public Works Construction Management Licensing Act of 1998, Idaho Code §54-4501 to 4514. (http://legislature.idaho.gov/idstat/Title54/T54CH45.htm )

In general, state laws governing licensing of architects and engineers include Construction Management (sometimes by different terminology such as “responsible observation of construction”) among the functions that can lawfully be performed by holders of those licenses.

In some states, the practice of construction management may also be addressed in the laws and regulations governing licensing of general contractors.

Does an architect’s or engineer’s license reflect qualification to perform professional CM?

Construction Management has long been recognized as a specialized discipline requiring knowledge and skills that are not routinely acquired by professionals educated and practicing as architects or engineers. As long ago as 1975, the American Institute of Architects, the Associated General Contractors and the American Council of Engineering Companies jointly stated that “the basic minimum capabilities of contractors, architects and engineers do not necessarily or automatically provide an individual with all of the skills required of a competent CM.”

To function optimally as a Construction Manager, an individual or entity should be free of financial and contractual obligations that might conflict with the primary responsibility to the owner of a project for the project’s well-being. Specifically, a general contractor (with a profit stake in both a basic contract and in any change orders) may not be able to serve in the “trusted advisor” role typically filled by a Construction Manager.

How have government and industry addressed these special needs?

State governments have, on occasion, stipulated specific amounts or types of experience as additional qualifications for management of state-funded construction. For example, Massachusetts law describes an “owner’s project manager” as “a person who is registered by the commonwealth as an architect or professional engineer and has at least 5 years experience in the construction and supervision of construction of buildings of similar size and complexity; or a person who is not so registered and has at least 7 years experience in the construction and supervision of construction of buildings of similar size and complexity.”

Both public and private owners have also relied upon professional credentials as an indicator of qualifications and experience for CMs. For example, the U.S. General Services Administration regards the Certified Construction Manager (CCM) credential issued by the Construction Manager Certification Institute (CMCI) as the most appropriate personnel certification for its senior project managers.

A number of other federal agencies, including the U.S. Army Corps of Engineers, the Department of Veterans Affairs, and the State Department Overseas Building Operations, have similarly incorporated the CCM into their procurement policies. Likewise, a growing number of state agencies including Departments of Transportation have embraced the CCM both for their internal staff and as a requirement for contractors.

Why is it important that the CM be responsible only to the owner?

A Construction Manager should be in a position to provide objective counsel and factual information to the owner, without being influenced by a financial stake in the project or a contractual relationship with any other party. This becomes particularly important in view of the growing interest in alternative project delivery methods as tools for accelerating project delivery.

What are alternative project delivery methods?

In the traditional procurement environment, a designer is retained to develop complete specifications and drawings for a project, and these documents become the basis for a construction bid solicitation. Alternative PDMs seek to speed up project delivery by overlapping or combining these functions, allowing construction to begin prior to completion of all design documents.

Among the more widely used alternative PDMs today are Design-Build and Construction Management At Risk. In Design-Build, the owner obtains both design services and construction from a single source, which makes possible some savings of time. In CM-at-Risk, a CM firm serves a review and supervisory function during design but functions as a general contractor during construction. The need for an owner-responsive Construction Manager in these cases is especially acute.

What is CMAA’s position on licensing of CMs?

While CMAA recognizes CM services may be provided by professionals licensed in other fields, those professionals should have the appropriate specialized education and experience supporting CM proficiency. Another professional license is not proof of CM proficiency and should not be accepted in lieu of proof of CM proficiency when CM is the desired service. For any CM practitioner, the experience and qualifications of a Certified Construction Manager credential is an excellent measure of proficiency.

CMAA does not oppose efforts to require licensing of CMs, provided that the qualifications and experience required for such licensure closely align with the qualifications and experience needed to obtain the CCM credential, and also provided the licensure reasonably defines the CM service, being careful not to create ambiguity in the service provision such that specialty segments of the CM industry are not precluded from performing their craft.

CMAA opposes efforts that would place the practice of Construction Management under contractor licensing laws or any other professional license category that would not require qualification and experience requirements similar in nature to that required to obtain the CCM credential.

In those places where the practice of Construction Management is not licensed, CMAA encourages owners to give preference in the selection of professional construction managers to individuals who have either obtained the CCM credential or who possess the experience and qualifications necessary to obtain the CCM credential.