AY Tea ele) alg Managing the Cost-Plus Construction Manager By Barbara A. Res sent, the buying should be done by ecutive. Estimating departments 5 can assist, but the process must be wner S e managed by the project team to avoid confusion and possible omis- sions with the subs. No trade 11a major building project or any project that starts work before | should be bought without com~ all the design is completed and the trades are purchased, the best | Plted plans for tha trade, unless ae is absolutely necessary. Scopes of project delivery system s the cst-plus-a-ee contract, aso caled oa hy the “agency-style” or “pure” construction management. Although there ar@ | Cf and reviewed and augmented other types of contracts that include a price guarantee, those contracts | by the owner’ representative. The set up an adversarial relationship | that it works with, but that might | owner’ rep should fully participate between the owner and the contrac- | eliminate the owner’ chance of get- | in the buy-out process. tor. I prefer a pure CM contract | tinga good price. Also,a CM may | The CM should provide a because, using this system, any | have a limited number of jobs and | schedule and monitor it regularly ‘owner can achieve a cost-effective | may not want to give too many proj- | to assure that it is realistically up- result and avoid pitfall. ectsto one sub, although the price is | dated, with the owner's representa- However, I have one caveat: A | low. The way to avoid having this | tive double-checking it. Often, competent owner's representative | affect your job is to have your own | CMs tell the owner what it wants must serve the owner's interest. | bidders lst and to participate ac- | to hear, knowing the schedule will ‘The owner's representative plays a | tively in the bidding. change. Flawed schedules set up crucial, often overlooked, roe. Keeping track of the general- | costly delay claims that get in the ‘The owner’ rep should have suf- | conditions costs is paramount. | way of project management. ficient experience working | Owners and CMs should agree to | “The owner'srep must participate for owners but also for con- | staff and salary ranges before they | in negotiations over staffing levels, tractors and subcontractors. | enter the contract, and the markup | too, but no incentives or penalties Credentials as an engineer | factor should be analyzed and nego- | should be leftto the subs. Damages, or architect are helpful, but | tiated. The CM should make its | if required, should fall on the subs, icismore importantthat the | money from a fair fee, not in per- | with limits negotiated when the owner’ rep has worked in- | sonnel costs. trades are bought out. timately with the owner's organiza- | _ The owner’ rep and staff also tion to the greatest extent possible. | AllStaff Members Are Valuable | should be physically present, with Hiring an owner's-representative | ‘The owner’ representative mustap- | the understanding that the owner’ CCM firm just adds another layer of | prove the CM's staff, including the | repisin charge and the CMs staffis, competing interests—the chosen | one individual who will take charge. | responsible to him or her. CM firm has other jobs and owners | The CM owes the owner a project | If your company does all or most to represent. ‘manager who can run the job without | of this, it will be on its way to a suc- Ifpossible, the owner’ represen- | constantly relying ona vce president | cessful project. a tative should work on one project at | atthe ownerS expense. Further,CMs | Barbara A. Res, an engincer a time. Also, since the owner’ rep- | should not “park” people on the | and attorney, serves as an owner's resentative should takea hands-on | job—every person should be neces- | representative and is president of approach to managing the CM's | sary and accountable. consultant Res Construction Ser- team, the rep should have decision- | ‘That aid, itisimportant to bring | vices. She is also the author of “All making authority in experienced people early in the | Alone on the 68tb Floor: How One One purpose this serves is to | process. Money is well spent on a | Woman Changed the Face of Con- keep the construction manager hon- | superintendent who can oversee the | struction.” Res can be reached at est amid the competing interests | demolition, get up to speed on the | barbara07675@gmail.com. that may interfere with the owner | drawings and participate in the early getting the best price. For example, | buys before foundations start. ccaawripant una moet eee the CM may have a coterie of subs | Ifthere is no purchasing depart | atetwrsamanGcastucton com 56 » ENR *June 13,2016 enr.com