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Construction Management Process
Construction management was introduced to the construction industry in the late 1960s and early 1970s as a result of raging inflation in construction costs stemming from wages and materials. Contributing factors were advances in technology and increasingly specialized methods and materials. It became obvious to Owners that the traditional general contracting approach was often resulting in adversarial relationships and financial losses for the Owner, Architect, Contractor and even Subcontractors. The lines of authority, responsibility and accountability had to be clearly defined and regulated under a management type of contract that represented the Owner’s best interest.
Construction Management is a project delivery method in which the Owner, Architect and Contractor work together closely to cost, value engineer, and execute a given project. Typically the Contractor operates under a cost plus fee agreement, rather than a stipulated sum agreement, ensuring that the work is completed on time and within budget.
The primary reason for hiring a construction manager is to maximize the scope of work for the dollars spent. The planning, organization and communication brought to a project team by hiring a competent Construction Manager guarantees that the project will be completed on schedule and within budget. As a member of a team, the Construction Manager has a higher degree of obligation to the Owner and invariably works in the Owner’s best interest.
For example, a Construction Manager in a negotiated fee contract will be more inclined to investigate possible alternatives rather than working with the design only. For certain projects, this typically results in an improved, more economical project and a more satisfied Owner. In addition, the Owner retains the benefits of competitively bidding subcontractors.
As a Construction Manager Verdi Construction Company provides generations of experience, invaluable subcontractor relationships, and planning, organizational and communication skills to the project team.
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