Hiring a Construction Partner
If your project can be divided into two major phases,
they would be the Design Phase and Construction
Phase.
Clients can often be guilty of rushing through the Design
Phase to get the project “underway”. But doing this can
cause the Construction to be disorganized and
potentially costly. After all, it is where the majority of the
dollars are spent with a project.
As you’ve read in our “The Life of the Project” series, the
Design Phase is not something to be rushed through. There is a wide range of details and
information that need to be collected and analysed properly when it comes to not only your specific
goals for the project, but also with understanding the building and the space that you are planning
to occupy.
This detail should be gathered and documented accurately and thoroughly in order to ensure it
translates properly into your ultimate set of construction drawings. These drawings will become the
basis for all of your contracts going forward. Not just your Construction Partner, but all of the
different sub trades that involved in your project.
Bringing the right Construction Partner on board is a critical decision for your project. When a
Construction firm is involved in the early design stages, they can provide valuable input and expert
opinion that may help guide the drawings. The Construction Partner will be able to help assist your
Designer with ensuring the project stays within your budget.
When looking at your Construction Partner options, you will be presented with two types of
Construction roles. They are General Contractors (GCs) and Construction Managers (CMs). Although
GCs and CMs are both considered the primary contractors on a construction job, there are
fundamental differences between these two roles.
General Contractors
GCs are typically hired on by the client through a bidding process that integrates the advice from the
client’s consultants, namely the architects and engineers. Often the lowest qualified bid is selected
for the job. The GC’s bid, or set price, is based on the contract terms and the construction drawings.
Should the GC expend less than its bid, then it will profit on the differential. This tends to foster a
competitive relationship with the client.
GCs are brought on during the Construction Phase. Given their lack of feedback during the Design
Phase, a GC may cause the architects and engineers to go back to their drawing boards. This is often
due to missing information or unclear details in the construction drawings. Such change orders not
only result in scheduling delays and cost escalations (including potential budget overruns), but can
also spur frustration and arguments between all of the project participants.
Once the construction process is underway, the GC primarily interacts with the client through the
architect. There is little to no effort made to foster an environment of cooperation and collaboration
between the GC, client, and architect. At times, this can result in a confrontation and hostility.
Construction Managers
The CM provides a specialized level of knowledge, experience and expertise that most clients do not
have, particularly for complex construction projects that require a wide array of skills to successfully
manage to completion. The CM adds value by providing the resources and expertise needed early on
to manage quality, cost, schedule, scope and risks associated with design and construction to help
the client achieve its objectives.
A CM is typically chosen based on merit and experience at some point prior to the completion of the
drawings (from a contractor point of view, the sooner the better). Adding a CM to the team this
early allows input throughout the process. A CM in this situation can review for constructability,
schedule and budget continually as design develops. This ability ensures that design, schedule and
budget are right on par when drawings are complete.
The ability to influence the design early is one of the most significant pieces to this discussion as it
has impact on both budget and schedule. And it is for these reasons that the long-run benefits of a
CM typically outweigh the low-cost differential of the GC.
For more information contact:
Michael Fleming
VP Business Development
[email protected]