How to hire a construction management firm

James Joyce, P.E.

President and CEO H.R. Gray Columbus, Ohio

What is their role?

Undertaking a construction project is a complex and challenging endeavor. Construction management firms can help level the playing field between the owner, design professionals and the contractor, as well as ensure that everyone is informed and understands their role, expectations, and schedule for completing the project on time.

The role of a construction management firm is especially important in the public sector, as many project managers in public agencies, especially smaller communities, may undertake substantial construction projects only once during the course of their career. However, the design and construction firms that they will work with will be involved in many similar projects over the course of a year. This leads to a gap in knowledge and experience. By integrating a knowledgeable construction management firm into the project, one can balance the experience level between the public owner and the construction firm.

There is an increase in public sector owners using alternative project delivery methods such as DesignBuild and Construction ManagerAt-Risk. All construction delivery methods have characteristics that may make them more appealing, depending on the project’s needs and the owner’s desires for cost control, schedule and risk. Owners should be aware of the differences with each project delivery method and understand how their project may benefit from each approach. It is important to note that, no matter what construction delivery method is selected for the project, the owner still maintains responsibility for costs and risk. A professional construction manager acting on the owner’s behalf as an independent Owner’s Representative can provide project oversight and assist with the management of those risks. A properly chosen project delivery method, along with a thorough, owner-friendly contract document, will help minimize potential risks and costs, no matter what construction delivery method is chosen.

When to hire

Contrary to popular belief, the first firm hired for a project should be a construction management firm. Hiring construction management firms at project inception allows construction managers the opportunity to work with owners to develop contract documents that are owner-friendly and focused on cost-saving and value-added preconstruction services such as value engineering, scheduling, and cost estimating. A construction management firm’s effectiveness in controlling costs occurs long before the contractor is clearing the site for construction.

An area where the construction manager can offer considerable expertise is with the contract documents. Often, the contract form design professionals use is a standard document available from industry associations; therefore, it ultimately serves the best interest of the design professionals. While these standard agreements provide a good starting point, it is in the public owner’s best interest to review and

Construction Management Services

• Cost and resource scheduling • CPM schedule development and monitoring • Value engineering • Constructability reviews • Design and construction schedules • Contract document development • Contract bidding, negotiation, and award • Onsite management and coordination • Contract administration • Quality control and inspection • Master plan implementation • Safety monitoring • Budget management • Change control and management • Audits and cost-to-complete estimates • Operation and maintenance manuals • Owner training and orientation • Project completion and close-out • Final project walkthrough • Final billings and contract closeouts

alter the document to ensure they are positioned to control the process and assign responsibility.

In an effort to more effectively communicate the final construction expectations to the contractor, early involvement in the project permits the construction manager time to work with the design professional to conduct a constructability review of the plans and specification to ensure the documents are clear and concise. Review by a construction manager ensures that items are properly spelled out, which helps to avoid change orders and schedule delays that add cost to a project. This allows the contractor to provide the best possible bid cost and schedule.

A construction manager’s expertise also extends to coordination with the contractor. Often on public works projects, the firm with the lowest bid secures the work. This philosophy provides contractors with the need to maximize their profit on change orders since they have already been asked to skinny-down their profit in the low bid. An “owner-friendly” contract can provide more specific language for the owner to control their project and limit their risk. A construction management firm can incorporate schedule milestones into the documents to provide accountability for the contractor. When goals and requirements are clearly explained in the documents, the risk of claims and change orders is dramatically reduced.

Claims avoidance

A construction manager is critical in the area of claims avoidance and mitigation. By knowing and understanding the contract and responsibilities, the construction manager can prepare a strategy to communicate effectively and deal with challenges before they become problems. Such knowledge and

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understanding of the contract will help address the everyday challenges that occur during construction.

If challenges or issues occur, the construction management team can document these as they arise. Ongoing documentation has numerous benefits, including keeping all parties apprised of continuing problems in order to follow up on a regular basis. Also, it allows all parties to identify problems in the early stages before they have a significant impact on the schedule and budget.

Selecting the right firm

One of the most important elements to consider when hiring a construction management firm is experience. Examine the firm’s experience in projects similar to one’s own and be sure that they served as the construction manager for those projects, not merely as the contractor or another member of the team. Also, be sure to check references. Ask for a list of owners that they have worked with and contact them to evaluate the firm’s performance. Finally, make sure that the firm provides comprehensive management with preconstruction, construction, and post-construction services. The proper firm will help level the playing field between the owner and contractor to ensure project success.

James Joyce, P.E., is President and CEO of H.R. Gray. With more than 25 years of experience in engineering and construction, he uses his managerial and operational expertise to lead more than 50 full-time associates. The former Director of the Department of Public Utilities for the City of Columbus, Ohio, Jim’s broad-based experience enables him to lead the company through strategic change and ensure quality construction management services are provided to customers.

Jim assumed the presidency in 2004 and through his leadership, H.R. Gray has successfully grown their offices in Columbus and Akron, Ohio; Lexington, Kentucky; as well as Austin, Texas. Contact him at jjoyce@hrgray.com or (614) 487-1335. Visit www.hrgray.com.

Founded in 1979, H.R. Gray is a unique management and consulting firm that provides public agencies with responsive, cost-effective, quality construction consulting, management, and claim resolution services for complex projects. H.R. Gray uses its unique skill set and proactive approach to help each client successfully manage its construction project from conception to completion. H.R. Gray has offices in Columbus and Akron, Ohio; Lexington, Kentucky; and Austin, Texas.