1. Agency Construction Management :CM NOT AT-RISK
The Construction Manager will play the role of Project Guardian.
The Owner will have an extra set of eyes and ears working in his own best interests:
Milestones will be set and met
Project costs will be closely monitored
Change Orders will be scrutinized carefully
Quality will be demanded
Under this approach, several other bid packages may also be used (i.e. the site and utilities package, the mechanical and/or the electrical packages). However, if the number of packages exceeds four, then the project will be considered a Multiple Prime Construction Management project.
During the construction phase, the Construction Manager provides the management, direction and coordination of the project to the General Contractor.
Under this approach, a major portion of the project work is under a single bid package. The General Contractor will subcontract with various trade contractors to complete the necessary tasks. As the General Contractor plays the middleman here, the Owner will generally receive a markup on the cost of those services and the General Contractor will most likely make a nice profit on the job.

2. DOES THE DESIGN/BUILD PROCESS ALWAYS WORK?
So, what happens if an Owner DOES NOT have the knowledge or experience necessary to make construction related decisions? SOLUTION: Hire a Construction Management firm to act as “owner’s agent”

3. Resident Field Engineer
Agency Construction Management “Construction Management For Fee” (contractual relationships: CM NOT AT RISK)
Owner
Architect/Engineer
General Contractor
Sub
Construction Manager
Resident Field Engineer
Agency Construction Management: A a fee-based service in which the Construction Manager (C.M) is responsible exclusively to the owner and acts in the owner's interests at every stage of the project. The construction manager offers advice, uncolored by any conflicting interest, on matters such as:
Optimum use of available funds;
Control of the scope of the 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;
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. As time progresses beyond the pre-design phase, the CM's ability to effect cost savings diminishes. The Agency CM can represent the owner by helping to select the design team as well as the construction team and manage the design preventing “scope creep”, helping the owner stay within a pre-determined budget by performing Value Engineering, Cost/Benefit Analysis and Best Value Comparisons.

4. Agency Construction Management
Agency construction management (ACM) encompasses a range of services provided by a CM on behalf of an Owner.
This method can been used successfully regardless of the type of formal contract.
Construction Management (CM) is a discipline uniquely tailored to the planning, design and construction process of capital projects.  It has proven effective regardless of the chosen contract form or project delivery method.  Indeed, CM has been used successfully in all contracting methods and delivery systems by Owners who do not continuously maintain the staff expertise or numbers necessary to deal with the complex responsibilities involved in the management of major projects.  By clicking on the links to the left, the reader will find a brief review of project delivery systems, along with a discussion of some of the important points an owner should consider in choosing a delivery method.

5. Why An Owner Chooses ACM?
Owners who:
Doesn’t have the experience/knowledge to make sound decisions during the construction process
--OR--
Does ‘t maintain the staff necessary to deal with responsibilities involved in the management of major projects. 

6. What Does the ACM Do?
CM as owner’s agent may provide professional services on behalf of Owner throughout the project, including:
Pre-design & Design phase
Construction phase
CM maintains “fiduciary duty” to act on Owner’s behalf & provide impartial advice concerning the project.
Fiduciary Duty:

7. What is “Fiduciary Duty”?
FIDUCIARY DUTY - An obligation to act in the best interest of another party.
A fiduciary obligation exists when one person places special confidence in another person and relies upon that person to exercise his expertise in acting for the client.

8. What is “Fiduciary Duty”?
The fiduciary knowingly accepts that trust and confidence.
Thereafter undertakes to act in behalf of the client by exercising his own discretion and expertise with concern of the interest of the client.

9. The Agency Construction Management firm has no vested interest in the project.
They are to simply act as the “owner’s agent”.
LET’S REVIEW THE SERVICES OFFERED BY AN AGENCY CONSTRUCTION MANAGEMENT FIRM

10. Pre-design and Design Phase
Selection Of The Design Team
ACM will often have historical experience in the market and can assist owner in selecting the most qualified A/E (architect/engineer)
Budget & Cost Estimating
Based on historical data for similar projects, ACM will assist owner in determining feasibility of initial scope.
Refined estimates are done later in the design phase to pinpoint the construction budget.

11. Pre-design and Design Phase
Constructability Review
A review of plans to verify that the design presented poses no construction conflicts and is economical to build.
Contract Bidding
Development of bid package and bidding procedures

12. Construction Phase Services
Construction Inspection & Surveillance
Examine contractor performance, compliance with specs, safety, etc.
Project Controls
Correspondence, progress meetings, submittals & requests for information, documentation of progress schedule, review of pay requests

13. Construction Phase Services
Change Order Review
Coordinating design changes with A/E
Negotiating change orders
Determining responsibility for changed conditions & coordination conflicts

14. Construction Phase Services
Project Closeout
Develop punch list
Resolution of outstanding issues
Review & analysis of claims or disputes

15. Project Manager May Delegate Responsibility To A Resident Field Engineer
On site on a regular basis.
Works closely with contractor
Inspection & quality control/assurance
Accepts/rejects materials
Oversees field testing
Prepares “as-built” drawings
Involved in change order process
Provides status reports to PM
**Must keep PM informed on a daily basis of project issues

16. Options Some owners are equipped with A/E services
Need assistance with bidding
Need assistance in finding qualified contractors to perform work.
When an owner has the ability to handle certain aspects, he may tailor the use of ACM services to meet specific project needs:
Project cost control services
Project scheduling services
Construction Phase Work