Contractor with Construction Manager

Ideally in this setup, the OWNER seek first the services of an Architect or Architectural firm. After the plans are prepared, the Architect invites contractor to bid for the project. At least 3 contractors should participate in the bidding. If the OWNER knows a capable contractor, he can also invite him to join the bidding. It is important that the Architect should be the one conducting the bidding because he can set bidding guides so that every item in the bid breakdown can be compared apple to apple during evaluation. Also, if the contractors has questions regarding the design, they can directly ask the architect. The architect then can issue bid bulletins to answer all design related questions.

While the bidding takes place, the OWNER can then hire a Construction Manager. It is recommended that the CM is not related in anyway with neither the Architect nor the Contractor. This is to ensure a good check and balance during construction.

After the bidding, the winning contractor will then be engaged directly to the OWNER. Although the contractor will be the one preparing the contract agreement, it is still to be checked and evaluated by the Construction Manager. All provisions, terms and conditions will be reviewed by the CM. You should not ask directly your contractor of anything about the contract agreement because it might give you a bias answer. If you have doubts and questions, it is your CM that you should consult. The CM and the Contractor may have a language that you might not understand. But you can be assured that the CM is doing his best to make everything in your favor. Otherwise, his reputation of being a good Construction Manager will be compromised.

Again, the advantages and disadvantages are actually almost the same with the previous setups. The only difference of this setup is having a very good check and balance because these 3 Construction Professionals are directly engaged with you. The Architect will ensure that his designs and details are complete, accurate and on time because the CM and the Contractor will be checking these before the contractor executes the plans. The Contractor will less likely attempt to perform poorly or abuse you because they are being monitored and checked by the CM. The CM on the other hand must also do well because the project's outcome mostly depend on him. If the project is done accordingly and finished on time, the credit goes to the CM. CM firms are always after this, because of client reference. In short, because each of them are afraid of having an impression of being incompetent, they will have to perform at their best. And the one that will benefit from this is the OWNER.