Saving Money on Construction

When and How Should a Construction Manager Be Used?

There are significant cost and risk implications with every project delivery method, including construction management. The key is to perform an independent, unbiased assessment of your delivery method options to determine the pros and cons, including the cost and risk differences, and a comparison of the effort and responsibilities required of you as the Owner.

Proceeding without a CM: If the decision is made to proceed without a CM, you can and should still look at ways to modify the traditional design/bid/build method to maximize its effectiveness. An example might be to consider early and/or multiple bid packages.

Selecting a CM: If the decision is made to hire a CM, make sure your selection process is based on specific, objective criteria that match the project’s priorities and goals. A thorough and fair process will help ensure you select the best CM for your project.

CM contract negotiation: Upon selecting the best firm, it is critical that you negotiate the appropriate combination of: scope of services, risk responsibility, contract terms, and fees and reimbursables. There is no reason to settle for a “standard” agreement without modifications.

Conclusion: Doing an independent assessment of your project delivery options, and utilizing a thorough, objective selection process if a CM approach is chosen, are important ways to save you money, reduce your risk, and increase your value on your construction project.

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Independent Construction Advisors

Independent construction consultants, such as Sitton Construction Group, LLC, are available to assist you in making objective assessments and decisions. When done correctly, an outside consultant’s value should far exceed the cost of the services. 

Headed by a 27-year veteran of the design and construction industry, Sitton Construction Group, LLC, provides hands-on services to manage construction projects more effectively. The firm’s focus on saving money, reducing risk, and increasing value, is based on experience on hundreds of construction projects with a total value in excess of one billion dollars.

To request help on a specific issue or an entire project, go to: www.sittoncg.com/request help or call Doug Sitton at 314.412.5677.

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