Comparison of Construction Management and Program Management Fees 2014 CMAA wishes to thank these organizations for their sponsorship and support of this study. SPONSORS Copyright 2014 by Construction Management Association of America. All rights reserved. Reproduction in whole or in part without permission of CMAA is prohibited. TABLE OF CONTENTS INTRODUCTION.................................................................................................................................................3 EXECUTIVE SUMMARY......................................................................................................................................4 A NOTE ON DATA AND PRESENTATION............................................................................................................6 SURVEY FINDINGS.............................................................................................................................................7 Survey Respondent Characteristics........................................................................................................................ 7 Fees Analysis...............................................................................................................................................................12 Project Characteristics.............................................................................................................................................17 Fee Type Used.............................................................................................................................................................18 Basis for Estimating Fees.........................................................................................................................................20 Project Role..................................................................................................................................................................21 Project Activities........................................................................................................................................................23 Delivery Method........................................................................................................................................................24 Construction Sector..................................................................................................................................................27 Project Owner/Customer Type .............................................................................................................................29 Project Type.................................................................................................................................................................31 Criteria for Incentives or Award Fees...................................................................................................................32 Direct and Indirect Costs.........................................................................................................................................35 APPENDIX OVERALL CM/PM FEE SUMMARY................................................................................................ 39 Overall...........................................................................................................................................................................40 Midwest.......................................................................................................................................................................42 Northeast.....................................................................................................................................................................43 South.............................................................................................................................................................................44 West..............................................................................................................................................................................45 International...............................................................................................................................................................46 Residential...................................................................................................................................................................47 Commercial.................................................................................................................................................................48 Industrial......................................................................................................................................................................49 Institutional................................................................................................................................................................50 Non-Building..............................................................................................................................................................51 Construction Management Association of America.....................................................................................52 FMI.................................................................................................................................................................................52 Notes.............................................................................................................................................................................53 2014 Comparison of Construction Management and Project Management Fees 1 TABLE OF CONTENTS (continued) GRAPHICS Table 1: Number of participating organizations and project submittals.......................................................................... 7 Chart 16: Project distribution by project delivery method............................................................................................24 Table 2: Participating organization type details................... 7 Chart 17: Project delivery method by project owner........24 Chart 1: Respondent organization distribution.................... 7 Chart 18: Project delivery method by construction sector...............................................................................................25 Table 3: Total employment details............................................ 8 Chart 2: Respondent organizational employment range.................................................................................................. 8 Table 4: CM/PM employment details...................................... 8 Table 5: Annual project count details....................................... 9 Chart 3: Respondent organization annual construction project involvement...................................................................... 9 Chart 4: Respondent organization annual revenue...........10 Table 6: Annual revenue details...............................................10 Table 7: Annual CM/PM service provider organization revenue............................................................................................10 Chart 5: Approximate number of projects and annual revenue per employee................................................................11 Table 16: Typical CM/PM Fees by project delivery method............................................................................................26 Table 17: Project distribution by construction sector and segment..................................................................................27 Chart 20: Typical CM/PM fees by construction sector......28 Table 18: Typical CM/PM fees by construction sector.......28 Chart 21: Project distribution by project owner.................29 Table 19: Typical CM/PM fees by project owner.................29 Chart 22: Typical CM/PM fees by project owner.................30 Chart 23: Project type.................................................................31 Chart 6: Distribution of all reported fees..............................12 Chart 24: Typical CM/PM fees by project type.....................31 Table 8: Participating organization type...............................14 Table 20: Typical CM/PM fees by project type.....................31 Chart 7: Typical CM/PM fees by organization type............14 Chart 25: Frequency of incentive of award fees for project goals and criteria...........................................................32 Table 9: Annual revenue.............................................................15 Chart 8: Typical CM/PM fees by annual revenue................15 Table 10: Total employment.....................................................16 Chart 9: Typical CM/PM fees by total employment...........16 Table 11: Project characteristics..............................................17 Chart 10: Project distribution by fee type.............................18 Chart 11: Project distribution by fee type segmented by organization type and industry sector.............................18 Chart 12: Typical CM/PM fees by fee type............................19 Chart 26: Criteria for incentive or award fees by respondent organization...................................................................................32 Chart 27: Specific sustainability goal project inclusion, including segmentations...........................................................33 Chart 28: Typical CM/PM fees by incentive or award fees and sustainability goals.....................................................34 Table 21: Typical CM/PM fees by incentive or award fees and sustainability goals.....................................................34 Table 22: Total cost structure breakdown.............................35 Table 12: Typical CM/PM Fees by fee type............................19 Chart 29: Greatest Benefits Received By Owners From Professional CM/PM....................................................................35 Chart 13: Project distribution by basis for estimating fee...............................................................................20 Chart 30: Greatest Benefits, comparison of owner/ service provider responses.........................................................36 Chart 14: Project distribution by project role......................21 Chart 31: Greatest challenges/concerns about professional CM/PM....................................................................37 Chart 15: Typical CM/PM fees by project role......................21 Table 13: Typical CM/PM fees by project role......................22 Table 14: Frequency of project activities performed by project role.....................................................................................22 Table 15: Project activities.........................................................23 2 Chart 19: Typical CM/PM fees by project delivery method............................................................................................25 2014 Comparison of Construction Management and Project Management Fees Chart 32: Greatest challenges/concerns, comparison of owner/service provider responses.....................................37 Chart 33: Core CM/PM functions or enhancements.........38