Management & Delivery

The clarification of "management" vs. "delivery" is the subject of the article written by Michael Kenig of Holder Construction.  While the title Construction Manager is tossed around in the construction business, Kenig says there is reason for concern that it does not communicate the important potential differences.  The difference has to do with the level of risk the Construction Manager carries and therefore the liability and expectations they must operate under during a specific project.

Construction Manager "Not-At-Risk" is a management role in which the CM oversees the design and construction.  It is also know as CM Agency and may be held by the owner or a third party.  The duties of the CM Agencies "Not-At-RISK" might include such tasks as hiring the architect and CM or GC "At Risk", overseeing the bidding process, and managing the delivery process of the hiring of an "At-Risk" CM.

Kenig points out that this is NOT an either/or question, but the question had to do with two different elements of the project: 1) Management and 2) Delivery.  His suggestion is to first determine the method of management of the project and once that decision is made then ask which delivery approach is most suitable.

Project Delivery focuses on the structure and responsibility of the different parties and is therefore "At Risk". The delivery process looks at the design, construction, operations and maintenance of a project and may be structure in several ways including Design-Bid-Build (DBB), Build-Operate-Transfer (BOT), and Integrated Project Delivery.

Perhaps the most important thing to confirm when you are discussing a Construction Management position is to clarify the intent of the owner so there is understanding regarding the responsibilities of the parties involved.