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<br />Information About Various Construction l\Ianagement l\rlethods <br /> <br />Construction l\rlanagement <br /> <br />Construction Management refers either to the study and practice of the managerial and <br />technological aspects of the construction industry (including construction, construction science, <br />construction management, and construction technology), or to a business model where one party <br />to a construction contract serves as a construction consultant, providing both design and <br />construction advice. <br /> <br />Typically, the construction industry includes three parties: an owner, a designer (architect or <br />engineer), and the builder (usually called the general contractor). Traditionally, there are two <br />contracts between these three parties as they work together to plan, design, and construct the <br />project. The first contract is the owner-designer contract, which involves planning, design, and <br />construction administration. The second contract is the owner-contractor contract, which <br />involves construction. An indirect, third-party relationship exist between the designer and the <br />contractor due to these two contracts. <br /> <br />An alternate contract or business model replaces the two traditional contracts with three <br />contracts: owner-designer, owner-construction manager, and owner-builder. The construction <br />management company becomes an additional party engaged in the project to act as an advisor to <br />the owner, to which they are contractually tied. The construction manager's role is to provide <br />construction advice to the designer, on the owner's behalf, design advice to the constructor, again <br />on the owner's behalf, and other advice as necessary. <br /> <br />Design Build Contracts <br /> <br />Recently a different business model has become more popular. Many owners - particularly <br />govel11ment agencies have let out contracts which are known as Design-Build contracts. In this <br />type of contract, the construction team is known as the design-builder. They are responsible for <br />taking a concept developed by the owner, completing the detailed design, and then pending the <br />owner's approval on the design, they can proceed with construction. Virtual Design and <br />Construction technology has enabled much ofthe ability of contractors to maintain tight <br />construction time frames. <br /> <br />There are two main advantages to using a design-build contract. First, the construction team is <br />motivated to work with the design team to develop a design with constructability in mind. In that <br />way it is possible for the team to creatively find ways to reduce construction costs without <br />reducing the function of the final product. The owner can expect a reduced price due to the <br />increased constructability of the design. <br /> <br />The other major advantage involves the schedule. Many projects are given out with an extremely <br />tight time frame. By letting out the contract as a design-build contract, the contractor is <br />established, and early mobilization and construction activities are able to proceed concurrently <br />with the design. Under a traditional contract, construction cannot begin until after the design is <br /> <br />Page 1 of 4 <br />