What activities should the CM be expected to undertake during the life of the project?


There are two types of Construction Managers (CMs). Through an agency CM, construction cost management is a fee-based service in which CM is responsible exclusively to the owner and acts in the owner's interests at every stage of the project. The construction manager offers advice on matters such as:


  • Optimum use of available funds;
  • Control of the scope of the work;
  • Project scheduling;
  • Optimum use of design and construction firms' skills and talents;
  • Avoidance of delays, changes and disputes;
  • Enhancing project design and construction quality;
  • Optimum flexibility in contracting and procurement;
  • Cash flow Management.


An Agency CM provides management of every stage of the project, beginning with the original concept and project definition and can represent the owner by helping to select the design team as well as the construction team and manage the design preventing scope creep, helping the owner stay within a pre-determined budget by performing Value Engineering, Cost/Benefit Analysis and Best Value Comparisons.


A second type of CM is a CM at-risk. This is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP. The construction manager acts as consultant to the owner in the development and design phases, (often referred to as "Preconstruction Services"), but as the equivalent of a general contractor during the construction phase. When a construction manager is bound to a GMP, the most fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager must manage and control construction costs to not exceed the GMP. (Source: adapted from http://en.wikipedia.org/wiki/Construction_management)