Benefits of Construction Management

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Benefits of Construction Management
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• Randy Jenkins PMP
• LEADERSHIP FOR PROJECT PROGRAM SUCCESS

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Todays reality...

• Construction is complex and challenging.
• Delays, changes, disputes, accidents cost more
  than ever.
• Owners dont 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 owners
  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 Owners Benefit
CONSTRUCTION MANAGER
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Tendered Projects

• A Prime Contractors lump sum contract has a
  profit and risk equation built in
• The market can sustain up to 15 mark-up on
  labour and materials
• Internal disciplines such as office
  administration, construction management 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 projects fail financially
  as well as, contractors fail to perform or go
  broke
• CMs recommend 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 Service
Professional Development
Representation of Qualifications
Conflicts of Interest
Fair Compensation
Fair Competition
Public 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 todays complex
  construction projects and programs.
• Collaboration is everyones responsibility.
• CM provides leadership and coordinates a
  multi-disciplinary team.
• Owners dont 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 members role.

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On the owners 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 owners 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 owners 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 owners 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