Three Better Ways to Select a Contractor – Construction Manager as Constructor

Several weeks ago, we introduced the idea that there are better ways to select a contractor than to ask contractors to submit bids at the end of the contract documents phase. In a subsequent post, we discussed the pros and cons of design/build. Today we look at a project delivery method known as Construction Manager as Constructor (CMc).

In this method, an owner hires both the architect and the CMc at the start of the project. If the architect is hired first, they can assist the owner in interviewing, evaluating, and selecting a construction manager.  The reverse can happen as well – an owner hires a CMc, and they assist in hiring the architect. In either case, each company has a separate contract with the owner.

The American Institute of Architects (AIA) contract language[1] places responsibility for establishing the project budget and schedule with the CMc. As the architect develops design concepts and produces the contract documents, the CMc provides estimates and ideas for modifying the design to stay on budget.  The CMc also advises on issues of constructability – which are the best materials and systems to use given the projects, program, budget, site, and schedule.

Once the design is done, the CMc prepares a guaranteed maximum price (GMP) which is the contractual cost of the building.

Pros:

• The construction manager’s knowledge of the most economical materials and systems is available from the start of the project.
• Creates a collaborative ethos between construction manager, architect, and owner.
• The construction manager can leverage relationships with sub-contractors to provide additional information regarding cost, schedule, and constructability.
• Can facilitate fast-tracking projects.
• Guaranteed Maximum Price format is open book, allowing for owner input on sub-contractors.
• The owner has direct access to architect and their consultants throughout both design, and construction phases.
• Cost-creep throughout construction is minimized.

Cons:

• Execution of a project under a GMP requires more record-keeping and information management.
• Construction management works best on larger projects.
• The construction management firms need to have dedicated pre-construction staff with skills in estimating, scheduling, and constructability reviews.
• This method of project delivery does not typically save money on fees.

If you want the expertise of a contractor as part of your project team from the start, let Blueline help you find and select the right construction manager.

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[1] You can learn more about the actual AIA agreement at https://www.aiacontracts.org/contract-documents/6232027-owner-construction-manager-as-constructor-agreement