ADVANTAGES / BENEFITS IN USING CONSTRUCTION MANAGEMENT (CM)
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The CM will provide value-add engineering/value-add designing for all phases of the project using years of cost history and real time data. Reputable CM’s are extremely knowledgeable regarding current costs structure due to daily cost tracking.
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The CM method allows valuable input during the design phase by providing constructability reviews and estimates for all phases of design. This will save money and construction time down the road by reducing or eliminating costly change orders.
(Here is an example: Due to rapid steel price increases the CM recommended switching to hollow core planks in lieu of bar joist, metal decking & cast in place concrete. This allowed for considerable savings, shortened the schedule and allowed more plenum space for the mechanical installation and future maintenance.)
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The CM will help produce a set of design documents that best represents the Owner’s desired scope of work within their budget.
Input from a CM’s perspective is from professional staff that have spent years in the field and have personally witnessed the pros and cons of numerous building systems.
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By being a team member during the design phase this will allow for better cost control for breaking out early bid packages for demolition, site work, foundation packages, and etc. to expedite the schedule. This will keep the project on time by reducing or eliminating unknown concealed conditions that could affect the overall budget.
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The CM will set up extremely detailed bid packages for every division of work making certain everything is covered but not duplicated. Detailed bid packages equate to efficiency, cost savings and keeping on time with construction. The sequencing of the bid packages is also considered to minimizing subcontractors from having to demobilize and remobilize that can affect the schedule.
 The CM’s have an extensive qualified subcontractor base they are familiar working with and allowing them to receive multiple bids on separate bid packages thus increasing savings through competition and local contractor participation.
 The CM’s will emphasize subcontractor competition to get the lowest bidder.

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The CM ensures that everyone participates in the bid process. When breaking out the bid packages much consideration is given to separate them out in a manner that will allow smaller contractors with lower overhead to be able to bid when they may not be able to bond or bid large packages.
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The CM method allows for sales tax savings to the Owner.
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The CM method eliminates multiple layers of mark up on material. This applies to the original bid as well as any change order that may be considered during construction. Multiple tiered subcontractors typically associated with the GC method can have mark up on material, equipment and labor multiple times.
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The CM method significantly reduces mark up of subcontractors’ labor and equipment.
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The CM method can completely eliminate the cost associated with double bonding. Each subcontractor is bonded directly with the Owner.
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With the CM method the CM continues to look for cost savings and value engineering ideas for the Owner until the completion of the project. General Contractors will typically not offer cost savings ideas that reduce their scope of work and contract value. The CM’s selection on future projects heavily relies on satisfied owner’s references. The CM will build their reputation by saving the owner every dollar possible.
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The CM has standardized processes to maximize savings to the Owner. These processes include:
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Design review at every stage with written reports
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Updated estimates
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Updated schedules
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Daily monitoring of the construction phase, with every major action monitored and documented.
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Superior quality control so that it is built correct the first time and not having to be reworked
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Schedule adherence
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Constant cost monitoring
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During post construction any warranty issue will be handled properly and timely
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Change order control. With the CM being involved in the design stage, change order requests during construction are significantly reduced. If during construction the owner wants to make a change, the CM will protect the owner through extensive review of all requested cost and time changes. The General Contractor may not be looking for the best interest of the owner, as they will increase their markup as the construction cost increases.

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During the Construction Phase the CM method has a representative onsite at all times while work is being performed. They are representing and answering only to the Owner to provide superior management of the trade contractors, quality control, safety inspections, and adherence to the schedule and cost control.
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Construction Managers typically do not self-perform any of the trade packages unless requested by the owner. This allows for all trade contractors to be treated fairly and foster better team spirit.