Construction Management

SELECTING A CONSTRUCTION MANAGER

Selecting a Construction Manager (CM) to build your project is a daunting task. You are putting your faith in organization to deliver a product which only exists on paper or in a conceptual design, trusting them to deliver your vision.

So what are the selection criteria of a Construction Manager? At Cimarron Construction Advisors & Construction Managers we believe the following (5) characteristics summarize a qualified Construction Manager:

SKILL:

Capability to run the project. At Cimarron, our skill comes from the combination of knowledge and experience of our people and the application of our processes and procedures.

PASSION:

What drives an organization to succeed? Our passion is smooth running successful project execution.

PHILOSOPHY:

What is the underlying belief structure of the CM? Our philosophy is proactively anticipating and solving challenges in a collaborative teamwork environment to optimize a project’s potential.

TRUST:

Is your CM believable and honest? Cimarron earns your trust by being your trusted advisor- effectively communicating issues and solutions along the way.

RESULTS:

Is there a history of achieving as promised? Cimarron personnel have successful project track records that are enviable in the industry.

Applying these qualities to your evaluation of Construction Manager can help determine the best fit for the Owner Organization and its project.

UNDERSTANDING THE TWO TYPES OF CONSTRUCTION MANAGEMENT:

The term Construction Management (CM) is commonly used when referring to hiring a firm to build a project. It is important to know there are two distinct types of Construction Management, each with its own benefits and contractual implications. Cimarron Construction Advisors & Construction Managers performs both types of construction management as follows:

Construction Management Agency

In Construction Management Agency (CM-Agency) relationship. In this role the Construction Manager represents the client as their dedicated representative. This relationship obligates the CM-Agency with fiduciary responsibility to the Owner Organization.

In this capacity, Cimarron oversees the project, procures, and writes contracts for the Owner Organization, which holds the contracts. Cimarron staff can also oversee the construction in the field with superintendents and typical construction staff.

Under this relationship the Owner Organization can potentially benefit from lower cost by eliminating the general contractor’s indirect costs and performs as the general contractor.

Construction Management At-Risk

Contractually, the CMAR is a General Contractor (GC) whose focus is meeting its contractual obligations to the project.

CM-at-Risk Contract Types:

Under CM-at-Risk there are two predominant contractual types: Guaranteed Maximum Price (GMP) and Lump-Sum (LS).

Guaranteed Maximum Price (GMP)

Construction Management at Risk This term, sometimes abbreviated as CM-at-Risk, refers to a specific type of project delivery method as well as a contractual relationship between the Construction Manager and Owner. Contractually, the CM-at-Risk is a General Contractor whose focus is meeting its contractual obligations to the project.

The CM-at-Risk agrees to coordinate, oversee, and deliver your facility for a predetermined price. In this legal relationship, the Construction Manager represents the project and is no longer in an advisory role as an agent of the owner. The CM-at-Risk holds the risk if the project exceeds the contractual price or schedule.

A Guaranteed Maximum Price contract is essentially an open book contract. While the GMP provides greater insight into the project for the Owner and often contains clauses for shared savings between the Owner and the CM-at-Risk, these savings can often be consumed by the additional personnel and reporting requirements of a GMP contract.

Lump-Sum (LS)

The Lump-Sum contract is where the CM-at-Risk agrees to deliver the project for a fixed price with a closed book. The Lump-Sum contract shifts the greatest amount of risk to the CM-at-Risk.

Alternative delivery methods:

While determining the best way to deliver a project, other methods including Design-Build should also be considered. Please refer to the Design-Build section of this website for a understanding of its process.

Timing

Cimarron’s goal is to deliver the project on time, on budget, with the appropriate level of quality. While the Construction Manager can be brought on at any time in the project prior to construction, it is best for to have early involvement, regardless of CM type. Early involvement results in better team cohesion, greater communication, and increased understanding of the project.

What Construction Management delivery method is best for your project?

At Cimarron Construction Advisors & Construction Managers we recognize there is no one size fits all solution. We collaborate with you to evaluate the goals, needs, and project concept to determine the best possible program to deliver your project.

Contact Cimarron Construction Advisors & Construction Managers to help you to determine the best way to deliver your project.