Construction Management Procurement

Question 1

What is construction management procurement?

Answer 1

• The employer directly appoints multiple trade contractors instead of a single main contractor.
• The employer places individual contacts with the trade contractors themselves.

Question 2

What are the key characteristics of construction management?

Answer 2

• The employer places a direct contract with each trade contractor and utilises the expertise of a construction manager to coordinate the works.
• The construction manager programmes and coordinates the works.
• The construction manager has no direct link with the trade contractors.
• The construction manager has no vested interest in the financial outcome of the project and, barring professional negligence, carries no risk.

Question 3

What are the key advantages of construction management?

Answer 3

• Quick start on site.
• Overall project duration reduced by overlapping the design and construction.
• The construction manager can contribute to the design and project planning processes.
• Changes in design can be accommodated without paying a premium.
• Can be cost benefits due to the placing contracts direct with the trade contractors.
• The employer has means of redress with trade contractors through direct contractual link.

Question 4

What are the disadvantages of construction management?

Answer 4

• Price certainty not achieved until the last trade package is let.
• The procurement route requires an informed, experienced and proactive employer to work.
• The employer has a lot of consultants and trade contractors to manage.

Question 5

When might construction management be appropriate?

Answer 5

• The employer is experienced in construction and has the suitable resources to manage the project.
• The employer wants to achieve an early start on site.
• The employer wants the flexibility to make minor changes to the design/specification through the process with minimal impact on cost and time.
• The project is technically complex and requires detailed engagement of specialist consultants and trade contractors.

Question 6

Which is the riskiest procurement route for the employer?

Answer 6

• Construction management as the employer places individual contracts direct with each trade contractor and the construction manager carries no risk (barring professional negligence).