Benefits of Construction Management

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Randy Jenkins PMP

LEADERSHIP FOR PROJECT & PROGRAM SUCCESS

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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!

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What is Construction Management ?What is Construction Management ?

• Construction Management is a Construction Management is a professional service that applies effective professional service that applies effective management techniques to the planning, management techniques to the planning, design and construction of a project from design and construction of a project from inception to completion for the purpose of inception to completion for the purpose of controlling time, cost and quality.controlling time, cost and quality.

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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.

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The Client & Construction Management The Client & Construction Management

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

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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.

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The CM works in the Owner’s Benefit

CONSTRUCTION MANAGERCONSTRUCTION MANAGER

Safety

Time Cost

Quality

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Tendered Projects

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Trades

Prime Contractor

Const. Manager

• A Prime Contractors lump A Prime Contractors lump sum contract has a profit sum contract has a profit and risk equation built inand risk equation built in

• The market can sustain up The market can sustain up to 15% mark-up on labour to 15% mark-up on labour and materials and materials

• Internal disciplines such as Internal disciplines such as office administration, office administration, construction management construction management and trades are marked up and trades are marked up tootoo

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Bonding & Project Performance

• Client stipulated surety Client stipulated surety bonding typically costs bonding typically costs up to 1.5% up to 1.5%

• Often developers Often developers projects fail financially projects fail financially as well as, as well as, contractors fail to contractors fail to perform or go brokeperform or go broke

• CM’s recommend CM’s recommend using risk analysis to using risk analysis to pinpoint where bonding pinpoint where bonding is sensibleis sensible

1.5

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Bonding

Prime Contractor

Const. Manager

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Cost Savings

The fact is …The fact is …

dollars run away dollars run away

withoutwithout Construction ManagementConstruction Management

• TradesTrades• MaterialsMaterials• BondingBonding• Owner ProfitsOwner Profits

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Magnum Project Management Ethics

Client Service

FairCompetition

Integrity

Standards ofPractice

Conflicts of Interest

PublicWelfare

Release ofInformation

FairCompensation

ProfessionalDevelopmentRepresentation

ofQualifications

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Owners need…

• Involvement in pre-construction and planning.

• Continued commitment all the way through project delivery and commissioning.

• Responsive leadership and collaboration throughout.

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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.

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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.

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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

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On the owner’s side...

• During design phase:

- responsive, esthetic design- life cycle cost analysis- constructability review- detailed budget and schedule- technology implementation

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On the owner’s side...

• During the bid process:

- pre-bid conference- clear bid documents- all questions answered- evaluate and compare bids- recommend choice

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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

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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.

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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 DriveParksville, 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 ManagementMagnum Project Management venture