Standards of Practice Course PROFESSIONAL PRACTICE

PROFESSIONAL PRACTICE

© Construction Management Association of America. Do Not Duplicate or Reproduce.

CM Profession Certification as a CCM Leadership Roles of the CCM Code of Ethics Delivery Methods Contractual Relationships Fee structures Compliance with laws & regulations


Education Specialized Training Supervised Experience References Examination (& re-examination)

Protect public health, welfare, & safety Cost-effective service Judgment Integrity Code of Ethics

Doctor…Structural Engineer…Lawyer



Has special knowledge of the CM

profession- Held to a higher standard

Represents a client- Owes the client a special duty as the owner’s “expert”

representative agent

- Occupies “responsible in charge” position

Acts ethically in the conduct of business- Adheres to a Code of Ethics


• CCM ®

– a recognized industry professional• Certified by both experience and examination• A CCM must meet strict certification program

criteria:– Formal Education– Actual documented and verified CM

Experience– Demonstrated understanding of the CM

Body of Knowledge


Must have 48 months responsible in charge (RIC) experience as a CM/PM (Qualification Matrix)

Plus one of the following:– 4-year Degree (Construction Management,

Architecture, Engineering, or Construction Science)– 2-year Degree & 4 yrs. Experience in General

Design/Construction– 8 Years Experience in General Design/Construction


PHASE: Pre-design Design Procurement ConstructionPost-

construction

FUNCTION/ ROLE

Project Management RIC RIC RIC

Cost Management RIC RIC RIC

Time Management RIC RIC

Quality Management RIC RIC RIC

Contract Administration RIC RIC RIC

Safety Management RIC

RIC Experience Minimum Total of 48 months required in these Phases & Function/Roles


Functions of a Leader Leadership in your companies Leadership in the CM Industry Leadership in the construction Industry


What are “ethics?” Why are they important? History of CMAA’s Code of Ethics The future of our Code of Ethics

Our Code of Ethics helps to define our primary responsibilities, which are to our clients

Client Services Representation of Qualifications Standards of Practice Fair Competition Conflicts of Interest


Fair Compensation Release of Information Public Welfare Professional Development Integrity


Client Service- I will serve my clients with honesty, integrity, candor,

and objectivity. I will provide my services with

competence, using reasonable care, skill and diligence

consistent with the interests of my client and the

applicable standard of care.


Representation of Qualifications- I will only accept assignments for which I am qualified by

my education, training, and professional experience and

technical competence, and I will assign staff to projects in

accordance with their qualifications and commensurate with

the services to be provided, and I will only make

representations concerning my qualifications and availability

which are truthful and accurate.


Standards of Practice- I will furnish my services in a manner consistent with the

established and accepted standards of the profession and

with the laws and regulations which govern its practice.


Fair Competition- I will represent my project experience accurately to my

prospective clients and offer services and staff that I am

capable of delivering. I will develop my professional

reputation on the basis of my direct experience and service

provided, and I will only engage in fair competition

for assignments.


Conflicts of Interest- I will endeavor to avoid conflicts of interest, and will

disclose conflicts which, in my opinion, may impair my

objectivity or integrity.


Fair Compensation- I will negotiate fairly and openly with my clients in

establishing a basis for compensation, and I will charge

fees and expenses that are reasonable and commensurate

with the services to be provided and the responsibilities

and risks to be assumed.


Release of Information- I will only make statements that are truthful, and I will keep

information and records confidential when appropriate

and protect the proprietary interests of my clients and

professional colleagues.


Public Welfare- I will not discriminate in the performance of my services

on the basis of race, religion, national origin, age, disability,

or sexual orientation. I will not knowingly violate any law,

statute, or regulation in the performance of my

professional services.


Professional Development- I will continue to develop my professional knowledge and

competency as a construction manager, and I will

contribute to the advancement of the construction and

program management practice as a profession by fostering

research and education and through the encouragement

of fellow practitioners.


Integrity of the Profession- I will avoid actions which promote my own self-interest at

the expense of the profession, and I will uphold the

standards of the construction management profession

with honor and dignity.


On September 6, 2005, the CMAA Board of Directors adopted a new set of definitions for frequently used construction industry terms, designed to provide commonly understood and accepted definitions for use of the construction management, and in fact the entire construction industry, while remaining flexible to meet evolving conditions.

In publishing the new industry definitions, the Board noted that “the practice of professional construction management in relation to project delivery systems and to construction management as a professional service may vary according to a number of factors,” and acknowledged that no set of definitions can accommodate all of these influences.


Construction Management- A professional management practice consisting of an array

of services applied to construction projects and programs

through the planning, design, construction, and post-

construction phases for the purpose of achieving project

objectives including the management of quality, cost,

time, and scope.


Program Management- The practice of professional construction management

applied to a capital improvement program of one or more

projects from inception to completion. Program management

provides additional benefits such as standardization,

leveraged purchasing, and economies of scale.


Qualifications Based Selection- A process where qualifications such as competence,

capability, relevant experience, and past performance are

given primary consideration in the evaluation and selection

of a service provider.


Delivery System- The process selected to execute a construction project

for the purpose of assigning responsibilities and risk to

the project team. Common delivery systems include:

design-bid-build, design-build, multiple prime, and

construction management at-risk.


Agency Construction Management- A professional service that can be applied to all delivery

systems where the CM acts as the owner’s principal agent

in the management of a construction project or program,

where the CM is responsible to the owner for managing

the planning, design, construction, and post construction

phases, or portions thereof. The CM represents the

interests of the owner in its dealings with other construction

professionals, and with other private and public entities.


Construction Management At-Risk- A delivery system which entails a commitment by the CM

for construction quality, time, and cost. The CM provides

professional management assistance to the owner prior to

construction and advice on constructibility, budget, and

schedule considerations. During construction the construction

manager holds sub-contracts for construction, and will

guarantee schedule and maximum cost of construction.


CMAA considers Construction

Management to include both- Project Management

- Program Management


Pre-Design Design & Procurement

Construction Post-Construction

Program Management

Project Management


Project Management is the application

of construction management techniques

to a single project Program Management is the application

of construction management to large and

complex capital improvement programs


Project and Program Management both

utilize integrated systems and procedures The principal difference is the size and

scope of projects, and the range of

services provided

Design / Bid / Build (traditional) Construction Management At-Risk Multiple Prime Contracting Design / Build

Construction Management has proven effective regardless of the delivery method


Fiduciary vs. Agent vs. Vendor Competencies Methods of Compensation Financial Liabilities and capabilities Full disclosure of differing legal relationships Other?



Agency CM- Design / Bid / Build; Single or Multiple Primes; Design/Build;

or the Owners’ Rep/Consultant

- Read the “A Series” CMAA Contracts for guidance

- CM bound to represent interests of the owner as an agent

- Providing a service, not a product

- Responsibilities defined by contract

- Liabilities defined by: • Contract

• Case Law

• Statutes


CM at Risk or GC/CM- Read the “At-Risk Series” CMAA Contracts for guidance

- Agent relationships and typical pre-construction services

during design or pre-GMP period

- Follow-on agreement for actual construction services as a

contractor, which the owner may or may not decide to accept


CM at Risk or GC/CM (continued)- If owner accepts GMP, the CM must ensure the owner

understands that the CM is no longer functioning as the

owner’s agent, and is now functioning as a vendor/contractor

- CM may provide additional CM-type services during

construction, if requested by the owner

during design or pre-GMP period

- If the owner rejects CMs’ GMP, may terminate the CM or

continue to employ the CM as an agent, and seek a third-party

construction contractor


All agents and professionals work for

the best interests of the owner Contracts may define a greater duty to

act in the current Owner’s best interests,

than others


If the client chooses to take the benefit

of a fixed price, the CM/Contractor takes

a financial risk in the outcome of the

project. The negates the previous

“agency” relationship. - No longer any implied duties of loyalty and care are due

to the owner.


Conflicts of Interest- I will endeavor to avoid conflicts of interest, and will

disclose conflicts which, in my opinion, may impair my

objectivity or integrity.


Depends on the type of contract /

legal relationship Fees depend on the services the Owner

is willing to pay for; not what they want

or need CMs should focus on a fee structure that

best suits the client’s needs and

accommodates their constraints

Fixed Price - Typically negotiated

- Based on mutually agreed to scope of services

- May create conflicts of interest between CM and client

- Minimal billing, bookkeeping, and audit efforts


Cost Reimbursement - Negotiated labor rates

- NTE limits maybe set

- Eliminates conflicts of

interests over fees

- Requires comprehensive

bookkeeping

Professional services are to be provided cost-effectively; with integrity, and in the interest of the owner Risks must be allocated and compensated for properly


As an industry, we MUST have appropriate fees to be able to deliver the services required; but we must NEVER overcharge our clients for services.


CMs should provide enforcement of their contracts – fair, firm, and fast – regardless of the delivery method employed.


All members of a project team should be familiar with their contract’s scope of services. Agent and/or vendor relationships must be enforced clearly and openly.


Third party liability issues Employment Practices Environmental Regulations Other Statutory Regulations

- Emergency planning- OSHA hazard communication- Pollution Prevention- Endangered Species


Compliance is a professional practice issue Compliance begins with awareness Compliance is not just an “additional duty” Monitoring systems must be established and documented; effective; and reliable


QUESTIONS?

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Standards of Practice Course PROFESSIONAL PRACTICE