Management contractor - Revision history

Designing Buildings at 08:49, 1 November 2022

2022-11-01T08:49:57Z

← Older revision		Revision as of 08:49, 1 November 2022
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	= What is a management contractor? =		= What is a management contractor? =

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	= How is a management contractor appointed? =		= How is a management contractor appointed? =

−	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~~. Collateral warranties are also likely to be required (for example, for purchasers, tenants or funders)~~. In addition, the client is likely to define the works contract terms and any requirement for works contract warranties.	+	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. In addition, the client is likely to define the works contract terms and any requirement for works contract warranties.

	There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a works contractor in court for non-performance, the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties from each works contractor.		There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a works contractor in court for non-performance, the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties from each works contractor.

−	A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs), plus either a percentage fee, a fixed fee, or on a ~~[[Target_cost_for_construction\|~~target-cost]] basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.	+	A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs), plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.
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		+	= What services does a management contractor provide? =

	The services of a management contractor might include:		The services of a management contractor might include:
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	* Managing the site.		* Managing the site.
	* Chairing site progress meetings and preparing progress reports for the client.		* Chairing site progress meetings and preparing progress reports for the client.
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		+	= Should a cost consultant be appointed as well as the management contractor? =

	A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant and a management contractor or to transfer cost planning, reporting and cost control as a service to be provided by the management contractor.		A decision needs to be made as to whether the client wishes to retain the services of both an independent cost consultant and a management contractor 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. Sometimes, cost consultants who were appointed prior to the concept stage, advising on budgets and design concepts, ~~have been~~ retained because they have the confidence of the design team and client.	+	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. Sometimes, cost consultants who were appointed prior to the concept stage, advising on budgets and design concepts, are retained because they have the confidence of the design team and client.
		+
		+	= How to select a management contractor =

	The most important aspect of selecting the management contractor is the quality and cost of the project management team they put forward. The team leader, the financial manager and the planner are crucial throughout the process as is the field production manager during the construction stage. The management contractor's staff costs during construction are likely to be between 5% and 7% of construction costs, but the quality and effectiveness of staff could easily change the financial outcome of entire project by 10%.		The most important aspect of selecting the management contractor is the quality and cost of the project management team they put forward. The team leader, the financial manager and the planner are crucial throughout the process as is the field production manager during the construction stage. The management contractor's staff costs during construction are likely to be between 5% and 7% of construction costs, but the quality and effectiveness of staff could easily change the financial outcome of entire project by 10%.

−	A mock meeting with consultants and the proposed management contractor's senior project team members can be an effective means of discovering how a team performs under pressure. ~~Obviously this~~ should only be done when ~~the~~ candidates have been whittled down to two or three. This technique often produces a unanimous verdict in terms of selection.	+	A mock meeting with consultants and the proposed management contractor's senior project team members can be an effective means of discovering how a team performs under pressure. This should only be done when prospective candidates have been whittled down to two or three. This technique often produces a unanimous verdict in terms of selection.

	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.		NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.
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	* Collateral warranties.		* Collateral warranties.
−	* Construction contract.
	* Construction manager.		* Construction manager.
	* Construction manager at-risk.		* Construction manager at-risk.
−	* Contract administrator.
−	* Design and manage procurement route.
−	* Design, build, manage contractor.
	* Design management.		* Design management.
	* Early contractor involvement.		* Early contractor involvement.
−	* Major project construction contract.
	* Management Building Contract.		* Management Building Contract.
	* Management contract: outline work plan.		* Management contract: outline work plan.

Designing Buildings at 08:37, 1 November 2022

2022-11-01T08:37:33Z

← Older revision		Revision as of 08:37, 1 November 2022
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−	~~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).	+	= What is a management contractor? =

−	~~It also enables some works contracts to be tendered earlier than others, and sometimes, even before the design~~ is ~~completed (for example, piling might commence whilst~~ the ~~detailed design~~ of ~~above ground~~ works ~~continues). This can shorten the time taken~~ to ~~complete~~ the ~~project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let~~.	+	Management contracting is a procurement route in which the construction works described in a contract are constructed by a number of different works contractors who are contracted to a management contractor appointed by the client (or employer).

−	~~See also: Management contracting - pros and cons.~~	+	= What are the advantages of a management contractor? =

−	~~Management contracting differs from construction~~ management in that ~~management contractors contract works contractors direct, whereas construction managers only manage~~ the ~~trade contracts~~, the ~~contracts are placed by the client~~.	+	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).

−	In legal terms, the management contractor is acting as a principal whereas the construction manager is acting as an agent. This means that on a management contract, the client only has one contract to administer (whereas with construction management there can be many contracts for the client to administer), but they might want warranties from the works contractors so that they can make a direct claim against them, for example, if the management contractor becomes insolvent.	+	Appointing a management contractor early also enables some works contracts to be tendered before others, and sometimes, even before the design is completed. For example, piling might commence whilst the detailed design of above ground works continues. This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.
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		+	For more information see: Management contracting - pros and cons.
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		+	= What is the difference between management contracting and construction management? =
		+
		+	Management contracting differs from construction management in that management contractors contract works contractors direct, whereas construction managers only manage trade contracts, the contracts themselves are placed by the client.
		+
		+	In legal terms, the management contractor is acting as a principal whereas the construction manager is acting as an agent. This means that on a management contract, the client only has one contract to administer, whereas with construction management there can be many contracts for the client to administer, but they might want warranties from the works contractors so that they can make a direct claim against them, for example, if the management contractor becomes insolvent.
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		+	= How is a management contractor appointed? =

	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. Collateral warranties are also likely to be required (for example, for purchasers, tenants or funders). In addition, the client is likely to define the works contract terms and any requirement for works contract warranties.		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. Collateral warranties are also likely to be required (for example, for purchasers, tenants or funders). In addition, the client is likely to define the works contract terms and any requirement for works contract warranties.

Designing Buildings at 08:08, 3 August 2022

2022-08-03T08:08:21Z

← Older revision		Revision as of 08:08, 3 August 2022
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	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.		NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.

−	~~{{:C_link_cta_setup\|Management contracting e-book template}}~~	+	= Related articles on Designing Buildings =
−		+
−	= Related articles on Designing Buildings ~~Wiki~~ =	+

	* Collateral warranties.		* Collateral warranties.
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	* Works contractor.		* Works contractor.

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:DCN_Person]] [[Category:Definitions~~]] [[Category:People~~]] [[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:DCN_Person]] [[Category:Definitions]] [[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Procurement]] [[Category:People]]

Designing Buildings at 09:33, 4 December 2020

2020-12-04T09:33:22Z

← Older revision		Revision as of 09:33, 4 December 2020
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	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.		NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.
		+
		+	{{:C_link_cta_setup\|Management contracting e-book template}}

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

Editor at 15:24, 21 October 2020

2020-10-21T15:24:51Z

← Older revision		Revision as of 15:24, 21 October 2020
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	* Construction manager at-risk.		* Construction manager at-risk.
	* Contract administrator.		* Contract administrator.
		+	* Design and manage procurement route.
	* Design, build, manage contractor.		* Design, build, manage contractor.
	* Design management.		* Design management.

Designing Buildings at 08:12, 1 October 2020

2020-10-01T08:12:05Z

← Older revision		Revision as of 08:12, 1 October 2020
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	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.		NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.
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−	~~[[File:C_link_management_contracting.png\|link=http://zpr.io/HtjPB]]~~

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

Designing Buildings at 07:55, 28 August 2020

2020-08-28T07:55:00Z

← Older revision		Revision as of 07:55, 28 August 2020
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	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.		NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.

−	[[File:~~C link management contracting~~.png\|link=http://zpr.io/HtjPB]]	+	[[File:C_link_management_contracting.png\|link=http://zpr.io/HtjPB]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* Works contractor.		* Works contractor.

−	[[Category:People]] [[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:DCN_Person]] [[Category:Definitions]] [[Category:People]] [[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 10:44, 6 July 2020

2020-07-06T10:44:03Z

← Older revision		Revision as of 10:44, 6 July 2020
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	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.		NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.
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		+	[[File:C link management contracting.png\|link=http://zpr.io/HtjPB]]

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

Designing Buildings at 11:27, 18 June 2020

2020-06-18T11:27:53Z

← Older revision		Revision as of 11:27, 18 June 2020
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	* Works contractor.		* Works contractor.

−	[[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:People]] [[Category:Appointments]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 15:06, 5 March 2020

2020-03-05T15:06:11Z

← Older revision		Revision as of 15:06, 5 March 2020
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−	~~NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.~~
−
−	~~-----~~
	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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	A mock meeting with consultants and the proposed management contractor's senior project team members can be an effective means of discovering how a team performs under pressure. Obviously this should only be done when the candidates have been whittled down to two or three. This technique often produces a unanimous verdict in terms of selection.		A mock meeting with consultants and the proposed management contractor's senior project team members can be an effective means of discovering how a team performs under pressure. Obviously this should only be done when the candidates have been whittled down to two or three. This technique often produces a unanimous verdict in terms of selection.
		+
		+	NB: For a detailed description of the sequence of tasks necessary on a management contract, see the free work plan: management contract: outline work plan.

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