As projects become more complex and schedules become more aggressive, Construction Management arrangements have become more common.In this approach, the Client and Construction Manager agree on a fee structure for the Construction Manager’s costs and fee. This can be established based upon fixed numbers or based upon percentages of the cost of the Subcontractor/Vendor costs.
Construction Management arrangements provide less initial cost certainty, but the Construction Manager acts as the client’s agent and solely in the best interests of the client and project from the outset.
Contractually, CJS will manage and coordinate all trades from start to finish. We will hold each individual contract (same as general contracting), but the client/design team will have full visibility into all sub-contractor and vendor costs through the bidding, buy out and award processes.
CJS will competitively bids all aspects of the project, which ensures that we are achieving the most cost effective and responsible price for each trade.
This approach gives significantly more visibility into all project costs and offers the possibility of a shared returned savings to the Client for any costs that come in under the project budget.
Another advantage to the Construction Management delivery approach is realized when the project schedule is aggressive. Unlike a General Contracting arrangement, where the full design needs to be developed and coordinated to ensure accurate pricing, a construction management arrangement allows for preliminary trades and materials to be engaged while the design is still being tweaked and finalized.
On many projects, this could result in reducing the overall schedule by weeks or even months.
"As the client you will have full visibility into all companies who are bidding and how they have priced the works. If transparency and accountability is key to you then this is the suggested construction route that you should take for your project."
- Steve Trummer, Estimator.