The Construction and Program Management Profession and CMAA

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The Construction and Program Management
Profession and CMAA

• February 24, 2005
• ACCE Mid-Year Meeting
• San Antonio, Texas

Bruce DAgostino, CAE Joe
Seibold, P.E. Sid Hymes, CCM,
CPC

Executive Director, CMAA PinnacleOne,
President CMAA Jacobs, CMAA ACCE Liaison
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Presentation Agenda

• Construction Management is . . .
• About CMAA
• Program Management is
• How can CMAA help ACCE?

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Todays reality...

• Construction is risky, complex and challenging.
• Delays, changes, disputes, accidents cost more
  than ever.
  
• Owners dont have the expertise or the staff to
  stay on top
  
• Success demands collaboration... andleadership!

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What Happened to the good old days?

• The construction industry responded to the demand
  for . . .
  
• lower/certain project and program costs,
  shorter schedules and greater innovation
  
• and introduced a variety of alternatives
• such as Design-Build and CM At-Risk

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Industry Paradigm Shift

• The role of long-standing relationships which
  formed the basis of agreements has been
  replaced by one-time, stand-alone contracts
  
• Risk and reward are evaluated, and expected, on
  each project
  

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Proliferation of Delivery Choices

• 46 states allow some form of construction
  procurement other than traditional
  Design-Bid-Build.
  
• the expertise demanded of all the projects
  participants is greater than ever

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What a relief !
We minimized the interfaces!
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Where does the CM fit in?

• Augments or represents the owner in todays
  complex contracting environment
  
• Provides the expertise necessary to achieve
  project goals
  
• Provides critical project/program leadership

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Construction Management
A professional practice that applies effective
management techniques to the planning, design,
and construction of a project from inception to
completion for the purpose of controlling time,
cost and quality.
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Professional CM pays off in

• Speed of project completion
• Quality of finished job
• Quality of the construction process
• Cost savings
• Project safety
• Claims and dispute avoidance

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CM and delivery systems

• Each delivery system requires professional
  management.
  
• Professional Construction Management is delivery
  system neutral and fills a vital role in all
  widely used delivery systems.
  
• A CM can help assess and select the best delivery
  method for every project.

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Key owner needs

• Objective participation focused on the Owners
  goals of project success.
  
• Involvement in pre-construction and planning.
• Continued commitment all the way through project
  delivery and commissioning.
  
• Responsive leadership and collaboration
  throughout.

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(From CMAA/FMI Owners Study)

• The number one problem in construction is
  effective project LEADERSHIP. In the future
  there will be less owner construction expertise,
  creating a leadership vacuum that the CM
  profession must step forward to fill. This
  requires that the CM accept responsibility for
  the project, and develop a collaborative
  relationship with both the A/E and the
  construction contractor in order to effectively
  lead the project team to success.

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The CM Always Acts inthe Owners Best Interests
CONSTRUCTION MANAGER
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Enlightened Owners Want . . .

• CM placed on the project team first to
• Manage A/E schedule for design submissions
• Review A/E design submissions for
  constructability and adherence to the budget
  
• Manage the overall project schedule
• Manage the procurement of the construction
  contractor
  
• Provide quality assurance
• Manage the commissioning program
• Manage and coordinate third parties

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On the owners side...

• In pre-design - program management
• - site analysis and selection - choice of
  delivery method - preliminary budget and
  schedule - general performance requirements -
  forming a collaborative team

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On the owners side...

• During design phase - schedule cost
  management
  
• - support a responsive, esthetic design - life
  cycle cost analysis - constructability review -
  detailed budget and schedule reporting -
  technology implementation

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On the owners side...

• During the bid process - procurement
  management
  
• - pre-bid conference - clear and complete bid
  documents - evaluate and compare bids -
  recommend choice

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On the owners side...

• During construction - contract administration
• - timely and full reports - financial
  management and control - manage change order
  process - assure a safe workplace - minimize
  delays and disputes - manage close-out and
  commissioning

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The Role of the CM

• A new leg to the stool
• Industry recognized professional service
• Critical to the delivery of successful projects
  and programs

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CONSTRUCTION MANAGEMENT ASSOCIATION OF AMERICA

• North America's only organization dedicated
  exclusively to the interests of professional
  program and construction management.

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About CMAA

• 2,900 member Industry Association comprised of
  corporations, individual practitioners, owner
  practitioners and academia.
  
• 25 regional chapters serving local needs of
  members and their clients.
  
• Incorporated in 1982.

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CMAAs Mission and Vision

• Mission
• To promote professionalism and excellence in
  the management of the construction process.
  
• Vision
• To be the recognized authority in the
  management of the construction process.

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The Goals of CMAA

• Promote international recognition and
  understanding of professional CM services for
  capital project execution.
  
• Provide CM Industry advocacy at all levels of
  government.
  
• Promote professional development of CMAA
  membership to assist members in marketing
  themselves and their companies.
  
• Promote research development of CM practices.
• To represent all segments in the CM industry.

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CMAA Code of Ethics

• Client Service
• Representation of Qualifications
• Standards of Practice
• Fair Competition
• Conflicts of Interest

Fair Compensation Release of Information Public
Welfare
Professional Development Integrity
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Professional Development

• Conferences Trade Shows
• Online Education Web-based training
• Distance Education CMs TalkLive!
• Certification Test Prep Course (New)
• Standards of Practice Course
• Project Leadership Training Program (New)

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Spring Conference Leadership ForumDenver,
ColoradoMay 23 24, 2005Creating collaborative
teamsA solution for the industry -- A mission
for the profession

• Creating Collaborative Teams in Iraq A keynote
  presentation by William E. Van Wagenen, Jr. CCM
  
• New Forum format features 12 sessions that
  generate an exchange of new concepts
  
• Six bonus education sessions
• A town meeting on "The State of CM/PM Training
  Is Our Profession at Risk?"

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CMAA National Conference Trade ShowHuntington
Beach, CaliforniaSeptember 11 13, 2005

• Professional Development
• Networking Opportunities
• Industry Recognition Luncheon
• Project Achievement Awards
• Association Business

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CM Standards of Practice Course

• Day 1 Professional Practice, Contract
  Admin., Project Management
  
• Day 2 Value Engineering, Cost Management,
  Safety Management
  
• Day 3 Time Management, Quality Management

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Contract Documents Publications

• CMAA Standards of Practice
• Standard Forms of Agreement for Agency CM
• Standard Forms of Agreement for CMAR
• Time Management, Quality Management, Cost
  Management, Program Management
  
• Contract Administration Procedures
• CM Leadership Development Guidelines

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CMAA Foundation

• CMAAs Foundation has awarded more than 40,000
  in scholarship support to students enrolled in
  college level programs in Construction
  Management.
• The Foundation has recently funded two research
  projects
  
• Comparative Analysis of Total Project Costs with
  vs. without a CM, which will be conducted by a
  joint research team from the University of
  Southern California and the California State
  University at Long Beach.
• Schedule Acceleration Techniques Using a CM,
  awarded to a team from Virginia Tech.

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Construction Manager Certification
Institute(CMCI)

• The Construction Manager Certification Institute
  is an independent administrative body of CMAA
  responsible for certification of Professional
  Program Construction Managers.

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CM Certification Goals

• Improve Professional Practice through the
  establishment of professional development goals
  
• Identify the CM body of knowledge and skills
  necessary for the successful practice of CM/PM
  
• Recognize individuals who demonstrate knowledge
  and experience essential to the practice of CM
  PM

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Total CCMs by Year
Numbers as of 12/31/04
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Institute Statistics

• CMCI has certified 551 CMs (as of
  2/21/05)
  
• There are currently 292 candidates in the process
  of becoming certified (as of 2/21/05)
  

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A Perspective of Program Management Relative to
Industry and Academia
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Overview and Outline

• Distinction between Program Management and
  Construction Management
  
• Organizational Attributes
• Knowledge and Skill Sets Required
• Going Forward

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Distinction between Program Management and
Construction Management

• Construction Management traditionally involves a
  single project
  
• Project delivery method and financing may have
  already been established by Owner
  
• CM individuals involved during the Design Phase
  (generally 30 complete and later)
  
• Yields either a CM-at Risk or Agency CM
• Skills required include constructability,
  pricing, sequencing, procurement, etc.
  

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Distinction between Program Management and
Construction Management

• Program Management involves multiple projects
  (within a larger project) involving all phases of
  a projects life cycle
  
• Planning/Conceptual
• Design
• Construction Contracting
• Construction
• Completion and Testing
• PM often serves as an extension of Owners staff

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Distinction between Program Management and
Construction Management (continued)

• Significant influence over program early in life
  cycle regarding financing, delivery methods,
  standards, criteria, project priorities, control
  methods
• Risk Management now a major discipline that
  Owners specify
  

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Organizational Models

• Industry Survey shows 4 basic Organizational
  Models utilizing Program Management
  
• Agency/Owner PM Organization (internally
  developed and staffed)
  
• Agency/Owner Replacement (consultant hired to
  perform all/most functions)
  
• PM Lite (consultant hired to monitor and
  coordinate vis-à-vis control and manage)
  
• Integrated PM Organization (combination of
  agency/owner and consultant personnelbest and
  brightest approach)
  

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Knowledge and Skill Sets Required

• In addition to traditional CM skills and
  knowledge, PM requires understanding of
  
• Project Financing
• Strategic Project Delivery (Public Private
  Partnerships, etc.)
  
• Agency and Regulatory Coordination
• External Communications (Communities, Abutters,
  Media, Governmental agencies, Program
  participants, industry groups, etc.)
  

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Knowledge and Skill Sets Required

• Companies employee people with such knowledge and
  skills through selective hiring
  
• Emergence of PM has created a tremendous demand
  for such people
  
• Little formalized training exists in the
  classroom
  

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How Academia and the CM Profession Can Best
Support Each Other

• An Invitation to Improve the Dialogue Between
  CMAA and ACCE

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CMAA ACCE

• ACCE has taken the lead in preparing college
  students to enter into the Construction
  Management profession
  
• CMAA has taken the lead in developing the
  definitive Construction Management Standards of
  Practice and defining the CM process

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It Only Makes Sense That AACE and CMAA Should
Continue to Work Together to Improve the
Construction Management Profession
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What the Profession Needs

• Qualified Individuals With
• Communication Skills
• Basic Areas of Knowledge (Alphabetically)
• Contractual Basics
• Estimating
• Personnel Management
• Planning Scheduling
• Safety
• Time Management

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What ACCE Can Provide

• Graduates With Oral and Verbal Communication
  Skills
  
• Graduates With Foundational Skills in the Basic
  Technical Areas (Estimating, etc.)
  
• Accreditation Criteria to Reflect the Industrys
  Need for Construction Management Professionals

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What CMAA and ACCE Need to Do

• Encourage Communication Between the Respective
  Memberships
  
• CMAA Will Identify Members Who Can Speak With
  Students About Opportunities in the CM
  Profession
  
• ACCE Will Reach Out To CMAA Members to Encourage
  Their Participation on Advisory Committees

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The Result

• Working Together, ACCE and CMAA Can Provide a
  Career Path For Graduates of ACCEs Accredited
  Programs

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Thank you!

• www.cmaanet.org