Comprehensive Overview of Construction Management Services - Armand Corporation

1. COMPREHENSIVE OVERVIEW OF Construction Management Services

2. Introduction to Construction Management Services Definition and Importance: Construction management services involve the planning, coordination, and control of a construction project from inception to completion. The primary aim is to meet the client's requirements in order to produce a functionally and financially viable project. Key Objectives: Deliver projects on time, within budget, and to the required quality standards. Scope of Services: Includes project management, cost management, time management, quality management, contract administration, and safety management.

3. Roles and Responsibilities in Construction Management Project Planning: Development of detailed project plans including schedules, budgets, and resource allocations. 01 Coordination: Ensuring all stakeholders, including contractors, architects, and engineers, work together effectively. 02 Quality Control: Monitoring work to ensure it meets the required standards and specifications. 03 Risk Management: Identifying potential risks and developing mitigation strategies. 04 Documentation: Keeping comprehensive records of all project activities and changes. 05

4. CONSTRUCTION MANAGEMENT AS AGENT (CMA) In CMA, the construction manager acts as an agent for the owner, providing advice and managing the project on their behalf without taking on the financial risks of construction. Advantages: Owner Control: The owner retains significant control over the project. Transparency: Clear visibility of project costs and activities. Expertise: Access to professional management expertise without direct construction involvement. Responsibilities: The responsibility of CMA includes managing contracts, overseeing the project schedule, ensuring compliance with specifications, and coordinating communications among all parties. 01 02 03

5. CONSTRUCTION MANAGEMENT AT RISK (CMAR) In CMAR, the construction manager commits to deliver the project within a guaranteed maximum price (GMP) and thus assumes the financial risk for cost overruns. Advantages: Cost Control: The CMAR model incentivizes the construction manager to control costs. Early Involvement: The construction manager is involved in the project from the design phase, leading to better planning and fewer changes during construction. Single Point of Responsibility: Simplifies communication and accountability for project delivery. Responsibilities: The responsibility of CMAR includes pre-construction services, construction services, and post-construction services, managing both cost and schedule.

6. COMPARISON: CMA VS. CMAR Risk Allocation: CMA: Owner bears most financial risks. CMAR: Construction manager bears significant financial risks. Cost Transparency: CMA: High transparency, as all costs are visible to the owner. CMAR: Guaranteed maximum price provides cost certainty. Owner Involvement: CMA: Higher involvement in decision-making and project management. CMAR: Less involvement needed as the CM assumes more responsibilities. Flexibility: CMA: More flexible in managing changes and modifications. CMAR: Less flexible due to the fixed GMP.

7. CONCLUSION AND BEST PRACTICES Key Takeaways: Understanding the differences between CMA and CMAR is crucial for selecting the right approach for a project. Both methods offer distinct advantages and can be chosen based on the specific needs and risk tolerance of the owner. Best Practices: For CMA: Ensure thorough planning, maintain transparency, and involve experienced managers. For CMAR: Select a reliable construction manager, establish clear GMP terms, and involve the CM early in the design phase. Future Trends: Increasing use of technology in construction management, emphasis on sustainable building practices, and growing importance of integrated project delivery methods.

8. OUR CONTACT +212.542.4179 www.armandcorp.com 141 West 36th Street, Suite 1602 New York, NY 10018