Why select the construction management approach over the traditional general contractor approach? According to Tom Moriarty of Monument Builders the key issue is, “Which ‘side of the table’ do you want your builder sitting on?”
The Construction Management Approach
Construction management services are rendered to the Owner for a fixed professional fee. The Construction Manager (CM), therefore, works as an extension of the Owner’s staff and shares in the Owner’s interests regarding schedule, budget, and quality construction as primary objectives. The CM is on the Owner’s “side of thetable.”
“The relationship is commercially advantageous to savings on the project as well as alignment with the Owner on reducing the overall cost of the project,” says Moriarty.
The General Contractor Approach
General Contractors are typically required to submit a competitive bid against other contractors to be obtain a project. The General Contractor (GC) is then motivated to maximize their profit margin on the project, which could lead to the use inferior materials and workmanship. In addition, unrealistically low allotments in the bid price tend to drive the final price up by 15% or more.