Agency Construction Management :CM NOT AT-RISK

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Agency Construction Management CM NOT AT-RISK
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DOES THE DESIGN/BUILD PROCESS ALWAYS WORK?

• So, what happens if an Owner DOES NOT have the
  knowledge or experience necessary to make
  construction related decisions?
• SOLUTION Hire a Construction Management firm to
  act as owners agent

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Agency Construction Management Construction
Management For Fee(contractual relationships
CM NOT AT RISK)
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Agency Construction Management

• Agency construction management (ACM) encompasses
  a range of services provided by a CM on behalf
  of an Owner.
• This method can been used successfully regardless
  of the type of formal contract.

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Why An Owner Chooses ACM?

• Owners who
• Doesnt have the experience/knowledge to make
  sound decisions during the construction process
• --OR--
• Does t maintain the staff necessary to deal with
  responsibilities involved in the management of
  major projects. 

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What Does the ACM Do?

• CM as owners agent may provide professional
  services on behalf of Owner throughout the
  project, including
• Pre-design Design phase
• Construction phase
• CM maintains fiduciary duty to act on Owners
  behalf provide impartial advice concerning the
  project.

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What is Fiduciary Duty?

• FIDUCIARY DUTY - An obligation to act in the best
  interest of another party.
• A fiduciary obligation exists when one person
  places special confidence in another person and
  relies upon that person to exercise his expertise
  in acting for the client.

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What is Fiduciary Duty?

• The fiduciary knowingly accepts that trust and
  confidence.
• Thereafter undertakes to act in behalf of the
  client by exercising his own discretion and
  expertise with concern of the interest of the
  client.

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• The Agency Construction Management firm has no
  vested interest in the project.
• They are to simply act as the owners agent.
• LETS REVIEW THE SERVICES OFFERED BY AN AGENCY
  CONSTRUCTION MANAGEMENT FIRM

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Pre-design and Design Phase

• Selection Of The Design Team
• ACM will often have historical experience in the
  market and can assist owner in selecting the most
  qualified A/E (architect/engineer)
• Budget Cost Estimating
• Based on historical data for similar projects,
  ACM will assist owner in determining feasibility
  of initial scope.
• Refined estimates are done later in the design
  phase to pinpoint the construction budget.

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Pre-design and Design Phase

• Constructability Review
• A review of plans to verify that the design
  presented poses no construction conflicts and is
  economical to build.
• Contract Bidding
• Development of bid package and bidding procedures

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Construction Phase Services

• Construction Inspection Surveillance
• Examine contractor performance, compliance with
  specs, safety, etc.
• Project Controls
• Correspondence, progress meetings, submittals
  requests for information, documentation of
  progress schedule, review of pay requests

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Construction Phase Services

• Change Order Review
• Coordinating design changes with A/E
• Negotiating change orders
• Determining responsibility for changed conditions
  coordination conflicts

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Construction Phase Services

• Project Closeout
• Develop punch list
• Resolution of outstanding issues
• Review analysis of claims or disputes

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Project Manager May Delegate Responsibility To A
Resident Field Engineer

• On site on a regular basis.
• Works closely with contractor
• Inspection quality control/assurance
• Accepts/rejects materials
• Oversees field testing
• Prepares as-built drawings
• Involved in change order process
• Provides status reports to PM
• Must keep PM informed on a daily basis of
  project issues

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Options

• Some owners are equipped with A/E services
• Need assistance with bidding
• Need assistance in finding qualified contractors
  to perform work.
• When an owner has the ability to handle certain
  aspects, he may tailor the use of ACM services to
  meet specific project needs
• Project cost control services
• Project scheduling services
• Construction Phase Work