Management contracting - pros and cons - Revision history

Designing Buildings at 10:21, 30 October 2023

2023-10-30T10:21:41Z

← Older revision		Revision as of 10:21, 30 October 2023
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	A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor. A judgement has to be made on the competence and experience of the management contractor's proposed quantity surveying and cost estimating team and whether the client has a competent individual to police the financial aspects of the management contractor’s consultancy agreement.		A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor. A judgement has to be made on the competence and experience of the management contractor's proposed quantity surveying and cost estimating team and whether the client has a competent individual to police the financial aspects of the management contractor’s consultancy agreement.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings =
−		+
−	=== Related articles on Designing Buildings ~~Wiki ==~~=	+

	* Construction contract.		* Construction contract.

Designing Buildings: Reverted edits by 134.148.99.188 (talk) to last revision by Designing Buildings

2021-10-29T05:24:23Z

Reverted edits by 134.148.99.188 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 05:24, 29 October 2021
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	[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]		[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]

−	Management contracting is a procurement route in which the works are constructed by a number of ~~dactors~~ who are contracted to a management contractor. The management contractor is generally appointed by the client early gn process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.	+	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.

	The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.		The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.

134.148.99.188 at 00:24, 29 October 2021

2021-10-29T00:24:10Z

← Older revision		Revision as of 00:24, 29 October 2021
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	[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]		[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]

−	Management contracting is a procurement route in which the works are constructed by a number of ~~different works contractors~~ who are contracted to a management contractor. The management contractor is generally appointed by the client early gn process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.	+	Management contracting is a procurement route in which the works are constructed by a number of dactors who are contracted to a management contractor. The management contractor is generally appointed by the client early gn process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.

	The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.		The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.

134.148.99.188 at 00:23, 29 October 2021

2021-10-29T00:23:04Z

← Older revision		Revision as of 00:23, 29 October 2021
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	[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]		[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]

−	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early ~~in the design~~ process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.	+	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early gn process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.

	The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.		The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.

Designing Buildings at 08:29, 21 September 2020

2020-09-21T08:29:14Z

← Older revision		Revision as of 08:29, 21 September 2020
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	* Works contractor.		* Works contractor.

−	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 07:59, 31 December 2018

2018-12-31T07:59:52Z

← Older revision		Revision as of 07:59, 31 December 2018
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	The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.		The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let.
		+
		+	For more information see: Management contracting.

	Management contracting can be beneficial on complex and/or specialist projects made up of a number of packages individually appointed to the best-suited subcontractor. This means that there is the potential for the highest-quality of delivery.		Management contracting can be beneficial on complex and/or specialist projects made up of a number of packages individually appointed to the best-suited subcontractor. This means that there is the potential for the highest-quality of delivery.
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	It can also be beneficial for the client in that they are able to retain control of the design while drawing on the experience and expertise of a construction specialist as part of the professional team, since the management contractor contributes to the design process. At the same time, the client is able to move risks or procurement and delivery onto the management contractor who is responsible both for project management and carrying out the works.		It can also be beneficial for the client in that they are able to retain control of the design while drawing on the experience and expertise of a construction specialist as part of the professional team, since the management contractor contributes to the design process. At the same time, the client is able to move risks or procurement and delivery onto the management contractor who is responsible both for project management and carrying out the works.

−	~~It is also beneficial in that the competitive tendering process~~, rather than the contractor tendering a fixed price, they can provide cost savings for the client~~. In addition~~, time savings ~~can be made~~ by tendering some of the work packages early (such as groundworks) and overlapping the design and construction activities. This allows for a quick start on site.	+	In addition, rather than the contractor tendering a fixed price, they can provide cost savings for the client, as well as time savings by tendering some of the work packages early (such as groundworks) and overlapping the design and construction activities. This allows for a quick start on site.

	There can be also be considerable flexibility in the design, with changes being made throughout the construction process (albeit with potential cost implications).		There can be also be considerable flexibility in the design, with changes being made throughout the construction process (albeit with potential cost implications).

Designing Buildings: Reverted edits by Rhea1910 (talk) to last revision by Editor

2018-12-31T07:58:19Z

Reverted edits by Rhea1910 (talk) to last revision by Editor

← Older revision		Revision as of 07:58, 31 December 2018
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	A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor. A judgement has to be made on the competence and experience of the management contractor's proposed quantity surveying and cost estimating team and whether the client has a competent individual to police the financial aspects of the management contractor’s consultancy agreement.		A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor. A judgement has to be made on the competence and experience of the management contractor's proposed quantity surveying and cost estimating team and whether the client has a competent individual to police the financial aspects of the management contractor’s consultancy agreement.

−	~~-----~~	+	= Find out more =
−	Management contracting is when a management contractor is employed to contribute their expertise to the design and to manage construction and is paid a fee for doing so. The management contractor has direct contractual links with all of the works contractors. They have the responsibility for the construction works without actually carrying them out. Not all of the design need be completed before the first works contractors start work. The MC selects the works contractors through competitive open book tenders. The client reimburses the cost of these packages to the MC plus their fee. The MC’s role is low risk – get prime cost plus a fee.	+
−		+
−	~~<br />~~	+
−	~~Appropriate for -~~	+
−		+
−	~~<br />~~	+
−	~~- Where the client does not want cost certainty before commencement<br />~~	+
−	~~- Where an early start on site in a priority~~	+
−		+
−	~~What are the advantages?~~	+
−		+
−	~~a) Overall project duration is shorter due to overlapping design and construction<br />~~	+
−	~~b) There is contractor contribution to the design and planning process<br />~~	+
−	~~c) Changes can be accommodated in packages not yet let if they have no further impact d) The works are let competitively at current market prices on a firm price basis~~	+
−		+
−	~~What are the disadvantages?~~	+
−		+
−	~~a) The price for the works is not received until the last package has been let<br />~~	+
−	~~b) Changes to the design of later packages may affect packages already let - expensive<br />~~	+
−	~~c) There is little incentive for the MC to reduce costs<br />~~	+
−	~~d) May become a ‘post box’ system<br />~~	+
−	~~e) In practice, the MC has little legal responsibility for the defaults of the works contractors~~	+
−		+
−	~~-----~~	+
−	Find out more	+

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===

Rhea1910 at 17:23, 30 December 2018

2018-12-30T17:23:35Z

← Older revision		Revision as of 17:23, 30 December 2018
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	A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor. A judgement has to be made on the competence and experience of the management contractor's proposed quantity surveying and cost estimating team and whether the client has a competent individual to police the financial aspects of the management contractor’s consultancy agreement.		A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor. A judgement has to be made on the competence and experience of the management contractor's proposed quantity surveying and cost estimating team and whether the client has a competent individual to police the financial aspects of the management contractor’s consultancy agreement.

−	= Find out more =	+	-----
		+	Management contracting is when a management contractor is employed to contribute their expertise to the design and to manage construction and is paid a fee for doing so. The management contractor has direct contractual links with all of the works contractors. They have the responsibility for the construction works without actually carrying them out. Not all of the design need be completed before the first works contractors start work. The MC selects the works contractors through competitive open book tenders. The client reimburses the cost of these packages to the MC plus their fee. The MC’s role is low risk – get prime cost plus a fee.
		+
		+	<br />
		+	Appropriate for -
		+
		+	<br />
		+	- Where the client does not want cost certainty before commencement<br />
		+	- Where an early start on site in a priority
		+
		+	What are the advantages?
		+
		+	a) Overall project duration is shorter due to overlapping design and construction<br />
		+	b) There is contractor contribution to the design and planning process<br />
		+	c) Changes can be accommodated in packages not yet let if they have no further impact d) The works are let competitively at current market prices on a firm price basis
		+
		+	What are the disadvantages?
		+
		+	a) The price for the works is not received until the last package has been let<br />
		+	b) Changes to the design of later packages may affect packages already let - expensive<br />
		+	c) There is little incentive for the MC to reduce costs<br />
		+	d) May become a ‘post box’ system<br />
		+	e) In practice, the MC has little legal responsibility for the defaults of the works contractors
		+
		+	-----
		+	Find out more

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===

Editor at 13:16, 17 August 2018

2018-08-17T13:16:05Z

← Older revision		Revision as of 13:16, 17 August 2018
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−	[[File:~~Construction management~~.jpg]]	+	[[File:Construction_management.jpg\|link=File:Construction_management.jpg]]

	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.		Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.
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	* Management contract: outline work plan.		* Management contract: outline work plan.
	* Management contractor.		* Management contractor.
		+	* Traditional contract - pros and cons.
	* Works contractor.		* Works contractor.

	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 10:08, 17 August 2018

2018-08-17T10:08:59Z

← Older revision		Revision as of 10:08, 17 August 2018
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		+	[[File:Construction management.jpg]]
		+
	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.		Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging and the risks of interfaces.