All You Need To Know About Construction Management Contracts
Construction Management is a lesser known but highly useful and affordable professional service that is used by various individuals and organizations to look after the planning and construction of any of their projects from the beginning to the end. Construction management includes designing of the structures and the core construction activity of the project. The main purpose that construction management serves to its takers is the saving of time and the assurance of a good quality construction of their project. Generally, construction management experts are hired for large scale and high budget projects, that are also knows as Capital projects.
The Role Of The Construction Management Agency
Firstly, in construction management, designs of the Project are finalized from a licensed or a reputed architect. This is followed by the assignment of a contractor to the construction project. The allotment of the contractor is generally done through the process of bidding. There is various criteria for qualifying any of the contractor as the project contractor such as bid price, quality of the proposal.
Given below are the major functions that are performed by the construction management company
-Deciding on the project objectives and a proper plan in phases which shall delineate the scope, and other aspects of the plan such as budgeting, scheduling, setting of performance goals.
-Implementation of the plan in a proper manner including control of the various operations in the business through proper co-ordination, estimation and the other important aspects in whole of the construction management project.
-Maximizing the efficiency of the resources that are involved in the project by adopting the right and optimal practices and properly engaging the labor and other resources required in the construction project
-Developing effective means of conflict resolution in the construction project
The most important facilities that are provided by a construction management company fall into the following 7 categories
-Project Management Planning
-Cost Management
-Time Management
-Quality Management
-Contract Administration
-Safety Mnagaement
-CM Professional Practice
The types of contracts that are undertaken by a construction management company can be divided on the basis of multiple aspects. On the basis of payment is the major basis to differentiate a construction management contract.
Lump sum is the most common type of contract. The overall cost of the construction project is the one agreed upon by both the contractor and the client and the payment is made on periodical basis as and when a certain portion of the commitment is fulfilled by the construction management company.
