Transcript Benefits of Construction Management
Benefits of Construction Management
Randy Jenkins PMP
2
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... and
leadership!
THINK PLAN ORGANIZE EXECUTE
3
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
4
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
5
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
6
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
7
The CM works in the Owner’s Benefit
CONSTRUCTION MANAGER
Safety Time Cost Quality THINK PLAN ORGANIZE EXECUTE
8
Tendered Projects
16 6 4 2 0 14 12 10 8 15 Trades 0 Prime Contractor Const. Manager
• 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
9
0.6
0.4
0.2
0 1.6
1.4
1.2
1 0.8
Bonding & Project Performance
1.5
Bonding 0.5
Prime Contractor Const. Manager
• 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
10
Cost Savings
The fact is … dollars run away
without
Construction Management • Trades • Materials • Bonding • Owner Profits
THINK PLAN ORGANIZE EXECUTE
11
Magnum Project Management Ethics
Conflicts of Interest Client Service Representation of Qualifications Professional Development Fair Competition Public Welfare Fair Compensation Standards of Practice Release of Information Integrity THINK PLAN ORGANIZE EXECUTE
12
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
13
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
14
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
15
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
16
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
17
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
18
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
19
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
20
Randy Jenkins PMP [Principal] 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
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 THINK PLAN ORGANIZE EXECUTE
21