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Construction Management - The Procurement method of the Future?

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Maria Pi

on 7 April 2014

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Transcript of Construction Management - The Procurement method of the Future?

Construction Management
1. Introduction
2. Project Delivery Methods
3. Construction Management Method
4. Methodology
5. Future use of the CM approach
6. Conclusion

Project Delivery Methods
Construction Management (CM) -
The Procurement method of the Future?

Presented By: Maria B. Pinto
Types of Contracts allow projects to run: Smooth, Feasible, Efficient
"The role of procurement methods are both organizing the works and allocating risks to different stakeholders" (Udom, 2012)
Assessment of Project Level Risk Categories
(Banaitiene, et al, 2012)

One entity responsibility
Consolidated risks (Owner/Contr.)
Flexible early planning
Early confirmation price
Time compression

Complex planning
No direct control from owner
higher risk for contract=higher $

Unit Price:

Complete drawings not needed
Easy to select contr.
Early project start date
Low owner risk

Unknown final cost
Contractor needs specs.
Unbalanced bids may occur
Stipulated Price:

supports owner's goal at competitive price
Final price known
Drawings are finalized
Owner has large amount of control

Owner has most risk
Ability to make changes= change in price and/or time
Longer start date

Early start date
Flexible scope of work
Maintained budget and
GMP method available

High risk for owner
price fluctuations if GMP not used
Scale of Contractual Risk Distribution
(Nichols, 2013)
CM- 5A:

early start date
Budget control
Schedule control

Many parties involved
higher owner risk
construction cost not known
CM- 5B:

CM expertise
Budget control
Schedule control
GMP availability
Suitable for large projects
low owner risk

price is unknown
upfront cost may be high
limited law precedent
The Construction Management approach will be the future's most common and beneficial procurement method for all parties involved.
Mr. John ****
Senior Project Manager - **** Construction Company
Mr. Andrew ***
Senior Architect - ****
Mr. Joe *****
Project Manager - ***** Construction
Mr. Gavin *****
Senior Partner - **** LLP
Mr. Sal *****
Senior Project Manager - ***** Inc.
The Future's Procurement Method?
Three key terms for a successful project.
Future use of the CM approach
"Watching these changes, many public-sector owner construction managers are struggling with their changing roles and struggling to obtain the skills required to coordinate the efforts of the designer and the contractor or design-builder to meet the expectations of partners or customers" (Smith, 2014)
Thank you!
Full transcript