Benefits of Construction Management

1. Benefits of Construction Management

2. Randy Jenkins PMP LEADERSHIP FOR PROJECT & PROGRAM SUCCESS THINK PLAN ORGANIZE EXECUTE

3. Today’s reality... • Construction is complex and challenging. • Delays, changes, disputes, accidents cost more than ever. • Owners don’t have the expertise or the staff to stay on top Success demands collaboration... andleadership! THINK PLAN ORGANIZE EXECUTE

4. What is Construction Management ? • Construction Management is a professional service 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. THINK PLAN ORGANIZE EXECUTE

5. Construction Management Values • Construction Management is a discipline and management system specifically created to promote the successful execution of capital projects for owners. • These projects can be highly complex. Few owners maintain the staff resources necessary to pay close, continuing attention to every detail; yet these details can “make or break” a project. THINK PLAN ORGANIZE EXECUTE

6. The Client & Construction Management • A professional CM firm can augment the owner’s existing resources with pre-planning, design, construction, engineering and management expertise that can assure the best possible project outcome no matter what type of project delivery method is used. THINK PLAN ORGANIZE EXECUTE

7. Professional CM pays off in: • Speed of project completion. • Claims and dispute avoidance. • Cost savings. • Quality of finished job. • Quality of the construction process. • Project safety. THINK PLAN ORGANIZE EXECUTE

8. Safety Time Cost Quality The CM works in the Owner’s Benefit CONSTRUCTION MANAGER THINK PLAN ORGANIZE EXECUTE

9. Tendered Projects • A Prime Contractors lump sum contract has a profit and risk equation built in • The market can sustain up to 15% mark-up on labour and materials • Internal disciplines such as office administration, construction management and trades are marked up too THINK PLAN ORGANIZE EXECUTE

10. Bonding & Project Performance • Client stipulated surety bonding typically costs up to 1.5% • Often developers projects fail financially as well as, contractors fail to perform or go broke • CM’s recommend using risk analysis to pinpoint where bonding is sensible THINK PLAN ORGANIZE EXECUTE

11. Cost Savings The fact is … dollars run away without Construction Management • Trades • Materials • Bonding • Owner Profits THINK PLAN ORGANIZE EXECUTE

12. Magnum Project Management Ethics Client Service Professional Development Representation of Qualifications Conflicts of Interest Fair Compensation Fair Competition Public Welfare Standards of Practice Integrity Release of Information THINK PLAN ORGANIZE EXECUTE

13. Owners need… • Involvement in pre-construction and planning. • Continued commitment all the way through project delivery and commissioning. • Responsive leadership and collaboration throughout. THINK PLAN ORGANIZE EXECUTE

14. Collaboration • The new imperative for today’s complex construction projects and programs. • Collaboration is everyone’s responsibility. • CM provides leadership and coordinates a multi-disciplinary team. • Owners don’t want stars – they want successful projects. THINK PLAN ORGANIZE EXECUTE

15. The new “master builder” • A TEAM including design pro, construction contracting entity, and qualified trade subcontractors. • Working together...sharing respect, knowledge, information and capabilities. • Communication, recognition, acceptance of each team member’s role. THINK PLAN ORGANIZE EXECUTE

16. On the owner’s side... • In pre-design: - site analysis and selection - choice of delivery method - preliminary budget and schedule - general performance requirements - forming a collaborative team - preparing bid documents THINK PLAN ORGANIZE EXECUTE

17. On the owner’s side... • During design phase: - responsive, esthetic design - life cycle cost analysis - constructability review - detailed budget and schedule - technology implementation THINK PLAN ORGANIZE EXECUTE

18. On the owner’s side... • During the bid process: - pre-bid conference - clear bid documents - all questions answered - evaluate and compare bids - recommend choice THINK PLAN ORGANIZE EXECUTE

19. On the owner’s side... • During construction: - 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 THINK PLAN ORGANIZE EXECUTE

20. What to look for: • Individuals who have earned the PMP designation. [Project Management Professional] • Firms with ISO 9000 qualifications. • INTERNATIONAL STANDARDS ORGANIZATION • Firms that encourage staff members to pursue certification as a sign of qualification & commitment to continuous improvement. THINK PLAN ORGANIZE EXECUTE

21. Randy Jenkins PMP   [Principal] Member of: The Project Managers Institute – ISO 9000                         The Vancouver Island Project Managers Association                         Affiliate of  The Canadian Management Consultants 250.752.3699 1.866.624.6868 1532 Sunrise Drive Parksville, B.C. V9K 1X7 Honorable Dr James Lunney Mr. Jenkins Honorable Bob Mills Mr. Jenkins recently met with Federal Energy Critic the Honorable Bob Mills regarding national energy strategies for a Magnum Project Management venture THINK PLAN ORGANIZE EXECUTE