Construction Management Pros and Cons

Project Delivery Options: Pros and Cons

Pros Cons

Construction  Less experienced owners without in-  Added levels of coordination and Management house construction capability benefit overlapping areas of authority can Advisor from CM expertise confuse the traditional roles and  Given decision-making authority and complicate the traditional processes management responsibility, a CM of design and construction advisor may speed up the process  A CM advisor represents an added  Architect is accountable to owner cost and protects owner’s interest;  A CM advisor may suppress direct architect benefits from CM advisor’s communication between owner, input at design stage architect, and contractor  A CM advisor provides second-level  Confusion in decision-making process review of construction documents, may contribute to design and/or reduces errors and omissions, construction delays reduces costs related to change  Since each of the three prime parties orders and other delays holds a separate contract with the  Clearly delineated responsibilities owner, there is the potential for between all parties lessen potential adversarial relationships, increasing for ethical dilemmas or conflicts the likelihood of disputes

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Construction  Less experienced owners without in-  Added levels of coordination and Management house construction capability benefit overlapping areas of authority can Agent from CM expertise confuse the traditional roles and  A CM agent’s ability to make fiscal complicate the traditional processes decisions can speed up process and of design and construction reduce duplication  A CM agent represents an added cost  Additional construction expertise at  A CM agent may suppress direct the design phase can be positive for communication between owner, the project (e.g., cost estimating architect, and contractor during design phase allows  Confusion in decision-making process monitoring of construction costs at may contribute to design and/or early stage) construction delays  A CM agent provides second-level  Since each of the three prime parties review of construction documents, holds a separate contract with the reduces errors and omissions, owner, there is the potential for reduces costs related to change adversarial relationships, increasing orders and other delays the likelihood of disputes  No link between CM agent and the contractors; thus, contractors can be selected based on competitive bidding

Construction  Since the CM contractor makes a  Time required to select an additional Management cost commitment early in the professional extends the overall time Contractor project, the owner has a degree of required for the project security about costs  A CM contractor represents an added  Since CM contractor commits to cost deliver the project for a specified  Since the owner does not contract price, it is in their interest to directly with prime or trade complete the construction on time contractors, owner may be unable to  Owners with limited construction control quality during construction experience can benefit from CM process contractor’s expertise  Since each of the three prime parties  Like other approaches, holds a separate contract with the independence of architect and owner, there is the potential for contractor makes responsibility and adversarial relationships, increasing liability relatively clear the likelihood of disputes  Scheduling is straightforward  When CM contractor is selected by because design and construction low bid, change orders and delays are phases are usually sequential likely, which increases costs  Linear process of this approach makes it relatively lengthy