THE CONSTRUCTION “AT-RISK” MANAGEMENT
The Construction “at-risk” Management or Open Book Method is an alternative procurement process similar to longstanding private sector construction contracting. It allows the client to choose the Construction Manager before the design stage is complete. The Construction Manager is chosen based on qualifications, and then the entire operation is centralized under a single contract. The architect and Construction Manager work together in order to cultivate and analyze the design. Then, the Construction Manager gives the client a guaranteed maximum price, and coordinates all subcontract work.
Cost savings can be realized in a number of ways. By hiring the Construction Manager during the design phase, early coordination is possible, which can increase the speed of the project and strengthen coordination between the Architect/Engineer and the Construction Manager. Since the client hires the construction manager based on qualifications, it ensures a construction manager with a strong allegiance to the client, because their business relies on references and repeat work.
Furthermore, transparency is enhanced, because all costs and fees are in the open, which diminishes adversarial relationships between components working on the project, while at the same time eliminating bid shopping. Construction Manager “at-risk” is viewed by many as an alternative procurement method that still retains enough of the design-bid-build process that it assuages some clients’ fears concerning design-build. Unlike design-build, clients that already have established relationships with architecture firms can still use their architect, but then like design-build have one point of contact for every other part of the project.
Finally, Construction Manager “at-risk” enables the contractor to get involved in the project at an early stage, thereby delivering many of the efficiencies found in other alternative delivery methods. Innovative solutions that deliver high quality work and measurable value for a client is an alternative project delivery method such as construction management “at-risk” can help provide this outcome.
CONSTRUCTION MANAGEMENT “NOT AT-RISK”
Construction Management “not at-risk” is the project management of design and construction services. Therefore, based on the size, complexity and budget a Construction Manager could be used in conjunction with any project-delivery method, including General Contracting,
Construction Managers “not at-risk” can be a very valuable part of your project tea. It is not uncommon for an owner who may have a
great number of projects at one time, not to have the in-house expertise, or not have it available at the time to help manage a
The Construction Manager “not at-risk” would then be responsible for overseeing the design, providing quality assurance during
construction, and most importantly assisting the owner in making the necessary decisions that are required to support the construction process. The Construction Manager may then help the owner; hire a general contractor, or a design-builder.