Construction Manager at Risk

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Construction Manager at Risk

• Things to Consider, Contemplate and Implement!!!

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INTRODUCTIONS OVERVIEW

• Renee Hoekstra, CVS, RH Associates - THE FLY
  ON THE WALL
• Craig Johnson, P.E. , Asst. City Engineer,
• City of Glendale - THE OWNER
• Dan Spitza, Achen-Gardner - THE CONTRACTOR

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By the Numbers Construction Industry
Institute/Penn StateComparison of US Project
Delivery Systems
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CM at Risk

• The Benefits
• Great construction means, methods and materials
  input during design
• Multiple GMP approach (phasing opportunities)
  enabling reduced completion time
• Better quality project overall
• Open book philosophy makes owners more
  comfortable

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CM at Risk

• The Benefits
• Reduced involvement from design team during
  construction
• Lower costs in todays market
• Enhanced control of subcontractor selection
• Enhanced value engineering
• Enhanced constructability
• Much more of a team approach
• Fewer RFIs during construction

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CM at Risk

• The Benefits
• Fewer design/construction related changes
• Improved long term relationships
• Client is getting more of what they want
• The team is able to honestly discuss costs
  (including escalation)
• Enhanced communication
• More budget control
• Smoother project closeouts

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CM at Risk

• Challenges
• The misconception that Partnering is not needed
  as much
• Contractors not understanding their true role in
  budget management
• New contractors to the methodology not able to
  get work
• Truly identifying the expected scope during
  pre-construction services
• Ability to educate councils and boards about
  hiring a contractor before construction actually
  starts What are they doing anyway?

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CM at Risk

• Challenges
• The contractor being selected too late in design
• Subcontractors role has changed
• New skills required of owner staff
• New marketing approaches for contractors (i.e.
  proposals interviews)
• Team gets into more of a cost reduction mode than
  a value engineering mode
• Roles and responsibilities not totally understood

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CM at Risk

• Challenges
• Contractors having challenges with conceptual
  cost estimating
• Contractors having challenges with understanding
  preconstruction services
• Team members not expressing their expectations
  adequately (process and roles responsibilities)
• Still too many RFIs during construction
• Additional time requirements for design team with
  the contractor during design
• Designers paradigm shift

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CM at Risk

• Things to Consider for the Future
• A scoping meeting with the CMR and the team to
  develop (Project Charter)
• Roles Responsibilities
• Methodology/Process Expectations
• Communication Plan
• Scope/Responsibility Matrix
• Project Goals
• Partnering is an effective tool but the format
  needs to change

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CM at Risk

• Things to Consider for the Future
• Additional time for the design team
• Design to budget
• More effective conceptual cost estimating
• Define what the GMP means (What does this really
  include!)
• Define the Contingency Allowance items, how
  they are spent and where any remaining dollars go
  (Who Owns the )
• Look for opportunities to introduce new
  contractors into the mix

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CM at Risk

• Things to Consider for the Future
• Do a lessons-learned after every project
• Focus on applying true value engineering, not
  just cost reduction (Dont forget about
  performance)
• Select the CMR firm around the same time or no
  later than 15 into the design
• 3rd party cost estimates (Its not about trust!)