Benefits of Construction Management

Randy Jenkins PMP

LEADERSHIP FOR PROJECT

THINK PLAN & PROGRAM
ORGANIZE SUCCESS
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Today’s reality...

• Construction is complex and challenging.

• Delays, changes, disputes, accidents cost
more than ever.
• Owners don’t have the expertise or the staff
to stay on top

Success demands collaboration... and

leadership!

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What is Construction Management ?

• Construction Management is a
professional service that applies effective
management techniques to the planning,
design and construction of a project from
inception to completion for the purpose of
controlling time, cost and quality.

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Construction Management Values

• Construction
Management is a
discipline and
management system
specifically created to
promote the successful
execution of capital
projects for owners.
• These projects can be
highly complex. Few
owners maintain the staff
resources necessary to
pay close, continuing
attention to every detail;
yet these details can
“make or break” a
project.
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The Client & Construction Management

• A professional CM firm
can augment the owner’s
existing resources with
pre-planning, design,
construction, engineering
and management
expertise that can assure
the best possible project
outcome no matter what
type of project delivery
method is used.

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Professional CM pays off in:

• Speed of project completion.

• Claims and dispute avoidance.
• Cost savings.
• Quality of finished job.
• Quality of the construction process.
• Project safety.

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The CM works in the Owner’s
Benefit

CONSTRUCTION MANAGER

Safety

Time Cost

Quality
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Tendered Projects

• A Prime Contractors lump

15
sum contract has a profit
16

14
and risk equation built in
12 • The market can sustain up
10 to 15% mark-up on labour
8 Prime Contractor and materials
Const. Manager
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• Internal disciplines such as
4
office administration,
2

0
0 construction management
Trades and trades are marked up
too

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Bonding & Project Performance

• Client stipulated surety

bonding typically costs
up to 1.5%
• Often developers
1.6 1.5

1.4

1.2 projects fail financially

1 as well as,
0.8 Prime Contractor
Const. Manager
contractors fail to
perform or go broke
0.6 0.5

0.4

0.2 • CM’s recommend

0
Bonding using risk analysis to
pinpoint where bonding
is sensible

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Cost Savings

The fact is …
dollars run away
without
Construction Management

• Trades
• Materials
• Bonding
• Owner Profits

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Magnum Project Management Ethics

Client
Professional
Service Representation
Development
of
Conflicts of Qualifications
Interest
Fair
Fair
Competition Public Compensation
Welfare
Standards of
Practice Integrity
Release of
Information

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Owners need…

• Involvement in pre-construction and

planning.
• Continued commitment all the way through
project delivery and commissioning.
• Responsive leadership and collaboration
throughout.

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Collaboration

• The new imperative for today’s complex

construction projects and programs.
• Collaboration is everyone’s responsibility.
• CM provides leadership and coordinates a
multi-disciplinary team.
• Owners don’t want stars – they want
successful projects.

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The new “master builder”

• A TEAM including design pro, construction

contracting entity, and qualified trade
subcontractors.
• Working together...sharing respect,
knowledge, information and capabilities.
• Communication, recognition, acceptance of
each team member’s role.

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On the owner’s side...

• In pre-design:

- site analysis and selection

- choice of delivery method
- preliminary budget and schedule
- general performance requirements
- forming a collaborative team
- preparing bid documents

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On the owner’s side...

• During design phase:

- responsive, esthetic design

- life cycle cost analysis
- constructability review
- detailed budget and schedule
- technology implementation

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On the owner’s side...

• During the bid process:

- pre-bid conference
- clear bid documents
- all questions answered
- evaluate and compare bids
- recommend choice

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On the owner’s side...

• During construction:

- timely and full reports

- financial management and control
- manage change order process
- assure a safe workplace
- minimize delays and disputes
- manage close-out and
commissioning

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What to look for:

• Individuals who have earned the PMP

designation. [Project Management Professional]
• Firms with ISO 9000 qualifications.
– INTERNATIONAL STANDARDS ORGANIZATION

• Firms that encourage staff members to

pursue certification as a sign of qualification
& commitment to continuous improvement.

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 Randy Jenkins PMP [Principal]

Member of: The Project Managers Institute – ISO 9000

The Vancouver Island Project Managers Association
Affiliate of The Canadian Management Consultants

250.752.3699 1.866.624.6868
1532 Sunrise Drive
Parksville, B.C. V9K 1X7

Honorable Dr James Lunney Mr. Jenkins Honorable Bob Mills

Mr. Jenkins recently met with Federal Energy Critic

the Honorable Bob Mills regarding national energy strategies
for a Magnum Project Management venture

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