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Construction Manager as Agent



CMa

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Construction Manager as Agent – As with the General Contractor Project Delivery method, Public Entity contracts with an Architect and/or Engineer (Designer) to provide the following services described in section II. i above.  The Public Entity will also contract with a Construction Manager prior to document development to act as their construction agent and to provide the following services:

Various Preconstruction Duties:

  • Constructability Review
  • Phasing and Schedule Development
  • Preliminary Cost Budgets
  • Assists Designer with Contractor Scopes of Work, Bid Solicitations and Bid Proposal Review
    Project Coordination:
  • Coordinates Various Trade Contractors in the Performance of their Scope of Work
  • Contract Administration of Trade Contractors
  • Meeting Minutes and Schedule Updates
  • Processes Change Orders and Application for Payment
  • Quality Review and Punchlists
  • Acts on behalf of the Public Entity Regarding Duties Related to Construction

The Designer and CMa act on behalf of the Public Entity during Pre-Construction, Construction and Post-Construction activities.  Designer is responsible for design and code compliance, CMa is responsible for project coordination.
                                                           
Strengths:

  • Designer and CMa work on behalf of the Public Entity to address design and construction activities as the Public Entity’s agents
  • CMa will provide a budget in lieu of the Designer, which is usually more accurate than the Designer’s budget
  • Cheapest priced trade Contractors are awarded a contract for a specific scope of work

Weaknesses:

  • Bid proposals may exceed allowable budget. CMa is not typically held accountable for their budget estimate(s)
  • Trade Contractors are not involved prior to bidding the project, so the Public Entity/Architect lose out on the opportunity to reduce project cost through addressing constructability issues prior to the bid, implementing life cycle and maintenance cost savings and/or the contractor(s) do not have a clear understanding of what the Public Entity/Designer/CMa are attempting to accomplish with construction of this project
  • Trade Contracts are awarded based upon lowest price, not past performance, quality of team or “best” value.  The Public Entity holds contract direct with each Trade Contractor
  • Animosity between Public Entity, Designer, CMa and Trade Contractors are inherently built into this delivery method:
  • Public Entity is concerned about errors and omissions of designer, as well as how the “low bid” trade contractors trying to recover costs through quality of work, change orders and/or claims
  • Designer is awarded a design service contract based upon the “lowest” fee and they aren’t typically given the necessary time to adequately complete the planning and development of construction documents prior to requesting/accepting bids.  Designer has to protect himself from the Public Entity and Trade Contractors, further reducing their fee by increasing cost through design changes, inspections and/or claims
  • Construction Manager is not at risk for the schedule, cost, quality, safety, scope of work errors, etc.  If the project cost more or takes longer than originally planned, the Construction Manager is reimbursed for these additional costs.  Any errors are pushed to the Designer or Trade Contractor, as the Construction Manager is not responsible or holding a contract with these parties
  • Trade Contractor is awarded a contract based upon the “lowest/cheapest” bid.  Trade Contractor’s primary interest is to make money; not to build a relationship based upon mutual goals or trust, improve quality or reduce the cost of the project.  Trade Contractors will look for opportunities to increase profit through quality reduction, change orders and/or scope of work errors at bid time
  • When the issues above arise, and they do arise on every project, not everyone is inclined to do what is best for the project and/or its team members.  Often, everyone denies responsibility, as they are training to minimize their cost; which leads to claims and/or litigation, project extensions and a dissolution of project unity 

Project size for using a CMa may vary, but RLTurner has typically seen this as the chosen method on projects greater than $25M.