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.
Thursday, September 18, 2014
Tuesday, September 16, 2014
Managed Construction
This setup usually happens in a complex project being done in phases. In this setup, the Construction Manager is the main man. He is the only one engaged with the OWNER. All other construction professionals involved in the project is under him or reports to him. He is the one making all the decisions including design issues, except for critical ones like aesthetic and structural impact which are consulted to the designing architect/engineer.
In most cases, there are several contractors in a project. There is a General Contractor, but his scope is usually limited to structural phase only. All other trades and specialty works are bid out to several contractors as the construction progresses.
ADVANTAGES:
1. The OWNER has less worries since the Construction Manager will be handling everything.
2. If managed properly, the OWNER can have big savings since every item of work will be given to the contractor with the best bid. Bids became usually low due to competition within the project.
3. There is no General Contract. If the OWNER decides to cancel the project, he has minimal obligations to settle.
4. If there is a contractor that does not perform well, the CM can easily replace him after his contract because his scope is probably just a small portion of the project at first. On the other hand, if the CM finds the contractor efficient, the CM can award him more works extending the amount of his contract.
DISADVANTAGES:
1. You only trust your CM. It would be hard for you to know if the CM is faithful to you. He may be receiving favors from some contractors in exchange to more contracts. Since he is the one evaluating the bids and contract, you are not sure if the evaluated cost is the cheapest cost you can have.
2. Warranty issues. Because there are several contractors in a project, there are often times confusion on who to claim warranty services. The CM should have managed this properly and documented everything for future references.
3. Contractors conflicts. Similar trade contractors in one projects usually finds themselves in a tight competition. Politics and work sabotage most likely happens. Also, if one contractor failed to do his part, other contractors that depends on his work will not be able to finish his works also. And if one contractor either intentionally or by accident, damaged the finished works of the other contractor, rectification works blows out to be a big issue. The blaming game now starts!
4. Conflicts on Temporary facilities. This is also related to contractors conflict. Because there are many contractors in a project, You should have an organized barracks and warehouse. It's like having a small temporary baranggay. You will need to address the issue of peace and order.
5. As the works are being done simultaneously by different contractors, the CM may need to hire additional inspectors to cope up with the speed of the progress.
In most cases, there are several contractors in a project. There is a General Contractor, but his scope is usually limited to structural phase only. All other trades and specialty works are bid out to several contractors as the construction progresses.
ADVANTAGES:
1. The OWNER has less worries since the Construction Manager will be handling everything.
2. If managed properly, the OWNER can have big savings since every item of work will be given to the contractor with the best bid. Bids became usually low due to competition within the project.
3. There is no General Contract. If the OWNER decides to cancel the project, he has minimal obligations to settle.
4. If there is a contractor that does not perform well, the CM can easily replace him after his contract because his scope is probably just a small portion of the project at first. On the other hand, if the CM finds the contractor efficient, the CM can award him more works extending the amount of his contract.
DISADVANTAGES:
1. You only trust your CM. It would be hard for you to know if the CM is faithful to you. He may be receiving favors from some contractors in exchange to more contracts. Since he is the one evaluating the bids and contract, you are not sure if the evaluated cost is the cheapest cost you can have.
2. Warranty issues. Because there are several contractors in a project, there are often times confusion on who to claim warranty services. The CM should have managed this properly and documented everything for future references.
3. Contractors conflicts. Similar trade contractors in one projects usually finds themselves in a tight competition. Politics and work sabotage most likely happens. Also, if one contractor failed to do his part, other contractors that depends on his work will not be able to finish his works also. And if one contractor either intentionally or by accident, damaged the finished works of the other contractor, rectification works blows out to be a big issue. The blaming game now starts!
4. Conflicts on Temporary facilities. This is also related to contractors conflict. Because there are many contractors in a project, You should have an organized barracks and warehouse. It's like having a small temporary baranggay. You will need to address the issue of peace and order.
5. As the works are being done simultaneously by different contractors, the CM may need to hire additional inspectors to cope up with the speed of the progress.
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