Construction Management Pros and Cons

Project Delivery Options: Pros and Cons Construction Management 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 Legal Disclaimer: Nothing in this material should be construed as investment, financial, brokerage, or legal advice. Moreover, the facts and circumstances relating to your particular project may result in material changes in the processes, outcomes, and expenses described herein. Consult with your own professional advisors, including your financial advisors, accountants, and attorneys, before attempting to consummate any transaction described in this material. 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 Legal Disclaimer: Nothing in this material should be construed as investment, financial, brokerage, or legal advice. Moreover, the facts and circumstances relating to your particular project may result in material changes in the processes, outcomes, and expenses described herein. Consult with your own professional advisors, including your financial advisors, accountants, and attorneys, before attempting to consummate any transaction described in this material. 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 Legal Disclaimer: Nothing in this material should be construed as investment, financial, brokerage, or legal advice. Moreover, the facts and circumstances relating to your particular project may result in material changes in the processes, outcomes, and expenses described herein. Consult with your own professional advisors, including your financial advisors, accountants, and attorneys, before attempting to consummate any transaction described in this material. .

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