agencyCM

Section I-6
Agency Construction Management

Agency Construction Management (CM) is similar in concept to the Construction Management-At-Risk (CM@R) - see Section I-5), with the very important difference that the CM does not have a financial risk for the final constructed cost of the project. The concept is that the role of the CM in the CM@R system is subdivided into two roles/ parties, the CM and the General Contractor. In the Agency CM system, the CM is involved during the construction phase instead of the CM@R system where the CM transitions to the role of GC once the GMP is established. The GC is also not involved during the design phase, requiring the Agency CM to have extensive knowledge of construction practices, costs, and trends for input during this period of the project.

Managing Roles / Responsibilities
Comprehensive management of every stage of the project, beginning with the original concept and project definition, yields the greatest possible benefit to Owners from Construction Management.

Advantages of this Delivery System
Agency CM is a fee-based service in which the CM is responsible exclusively to the Owner and acts in the Owner's interests at every stage of the project. The CM can offer advice, unaffected by any conflicting interest, on matters such as:

Optimum use of available funds;
Control of the scope of work;
Project scheduling;
Optimum use of design and construction firms' skills and talents;
Avoidance of delays, changes and disputes;
Enhancing project design and construction quality;
Optimum flexibility in contracting and procurement;
Cash flow management.

Disadvantages of this Delivery System
The primary disadvantage of the Agency CM system involves the contractual relationship among the Design Professionals, CM, GC, and Owner. As is the case during the construction phase of the CM@R system, tensions over construction quality, the completeness of the design, and impacts to schedule and budget can arise. Interests and stake holding can become similar to the traditional Design-Bid-Build system, and adversarial relationships may result. In addition:

This system introduces a fourth party to the team which requires more team building;
The General Contractor is not able to provide cost-saving suggestions during the design phase;
The General Contractor is not able to provide schedule expediting suggestions during the design phase;
Early construction packages are more difficult to issue.

Approved July 2010