Understanding the options in construction management Ohio opens door for Construction Manager at Risk Kristen Braden, P.E., Esq. Construction Project Manager H.R. Gray Hilliard, Ohio
he Ohio legislature is expanding the choices allowed in construction contracting methods and catching up Ohio with the other 49 states by providing other selections to owners when choosing a construction delivery method of a public project. An owner must be fully educated on the differences between the various construction delivery methods and accept the responsibility that each method may lay upon the owner. In addition to the existing method of multiple prime contractors, the other construction delivery options now available include general contractor (GC), design-build (D-B) and Construction Manager at Risk (CMAR).
Contracting methods at-a-glance In the general contracting method, similarly to the traditional multiprime method, the contractor is not involved in the project until after the design is completed. The owner hires a general contractor to be responsible for the day-today oversight of the construction site, and management of vendors and trades. A general contractor is responsible for providing all of the material, labor, equipment and services necessary for construction of the project. The general contractor hires more specialized subcontractors to perform portions or all of the construction work, allowing for the lowest cost to be obtained through the bidding process. The general contractor doesn’t become involved 98 APWA Reporter
August 2012
until after the design is complete, which is when he will generate an estimate that includes the entire cost of constructing the project. The most obvious advantage of the GC over the multi-prime is, since the owner has only one contract, any disputes about the scope of the work or issues with defective work are only directed toward one entity—the general contractor. The Construction Manager at Risk (CMAR) method is set up to give the authority and cost control to the CMAR. The CMAR does not perform the design service or any of the actual construction services—such as construction, repair, or demolition. The CMAR becomes involved during the design phase, sets a GMP for completion of the project after design, and hires all the contracting firms. The CMAR is responsible for cost control and any overages are at his expense. He acts as a consultant to the owner in the development and design phases, but is basically the equivalent of a general contractor during the construction phase. The CMAR makes more money when the job is brought in at a lower cost than bid. In design-build (D-B), the owner hires a design-build team which handles the entire process—from the initial design through the construction of the project. The D-B team is responsible for the design, construction, demolition, repair, or reconstruction of the project. The architect, general contractor, and all
the specialty contractors are all part of this integrated delivery system. The D-B procurement route changes the traditional sequence of work. It is a single-point of responsibility for the owner in an attempt to reduce risks and overall costs. Further, D-B projects can be completed faster because the potential for construction problems are uncovered early in the design phase. A single price is quoted for the entire project. In this process, the same parties are involved from beginning to end so there is intimate knowledge of all phases of the project, allowing for smooth coordination of the process.
Pros/Cons of Construction Manager at Risk Typically, a CMAR arrangement eliminates a low bid construction project. It is considered a cost-saving form of construction management, since the contractor is responsible for monitoring all the costs and must assume the cost of any overages; he is motivated to keep the project on schedule and under cost. The CMAR operates as a business manager, ensuring that costs are adequately controlled and that expenses are kept in check. The owner typically can select the CMAR based on qualifications, not just on lowest cost. Any claims that arise between subcontractors are handled within the CMAR’s contract, not by the owner. Having the CMAR involved from the design stage provides him with a better understanding of the project and what may be involved. He provides the owner with a GMP
