- Now today, we're gonna talk about construction management.
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So, what is construction management?
Construction management is a professional service
that provides the client with effective management
of the project program, the cost plan,
quality plans, scope of works,
health & safety, and design.
Construction management is also a collaborative approach
that's less adversarial
and fosters a problem-solving environment.
Construction management is known as a procurement method
that's alternative to traditional contracting,
whereby the client is responsible for the design,
and the contractor builds out the design,
or design and build, where the contractor is responsible
for the design and the construction
based on a set of employer's requirements.
And lastly, management contracting,
where the contractor will appoint, manage,
and administer work contractors.
Management contracting is very similar
to construction management.
The key difference being in construction management,
the employer will enter into contract
with trade contractors, whereby in management contracting,
the main contractor will enter into contract
with work contractors.
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So there are several differences between project management
and construction management,
but there are two real key differentiators.
The first being, project managers are involved
in the whole project lifecycle,
from inception right the way through
to handing over of a building or an asset.
Whereas a construction manager
will normally be involved in the project
from the planning permission stage.
And the second key differentiator,
is that in project management,
the project manager will procure,
manage and administrate one contract
between the employer and the contractor.
Whereas in construction management,
the construction manager will procure,
manage and administer multiple trade contracts
between the employer and the trade contractors.
Clients can expect their construction manager
to undertake the following tasks,
to produce the project schedule or program.
To produce the cost plan,
or even verify a cost plan if it's already in place.
To produce a tender event schedule,
which is a procurement schedule for trade contractors,
suppliers and services.
To act as the principal contractor
including producing the construction phase plan.
To administer the trade contracts,
and to also undertake valuations and issue payment notices.
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Construction management can work for all project delivery.
Regardless of the project type,
the construction manager is responsible to the client
and for delivering a successful project.
That said, in our experience,
construction management is really well suited
to industrial units and commercial projects,
to residential projects, where perhaps the client
has decided to opt for self delivery,
or modular projects where the majority of the cost
is in one package, or even complex projects
where plant and equipment
needs careful consideration and coordination,
and may even be more expensive than the building.
Really, construction management is suited
to any project that requires speed,
flexibility, control, quality,
early engagement with a construction manager
or access to specialist trade contractors.
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The main problem we have at Evolution5,
is most people don't know what construction management is,
that even includes construction professionals.
Furthermore, it's often confused
with management contracting,
as we explained earlier in the video.
Ultimately, there are two misconceptions
when it comes to construction management.
The first being, it's all too risky.
When compared with a design and build lump sum contract,
by the time you factor in extensions of time, changes,
variations, and the commercial advantages
that come from that,
the benefits of design and build lump sum become eroded.
The second misconception, which is a huge misconception,
is that construction management is too expensive.
This simply is not true.
By the time you take into consideration buying gains
that contractors would make,
that would otherwise go back to the client
under construction management,
no main contractor overhead and profit,
pre-construction fees incurred by the construction manager
are a replacement or substitution
for other consultancy fees, such as the project manager,
or maybe the quantity surveyor
who are no longer required to undertake these activities.
Most of the construction manager's fees
come out of what's known as the preliminary costs.
In fact, construction management
is known to be 5 to 10% cheaper on certain projects.
So, I really do hope you found value in this video.
If you have any questions, please do contact us.
And we really look forward to hearing from you.
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