Construction Management allows the owner to take a significant hands-on role in the project. In this relationship, the owner chooses the most qualified Construction Manager for a fee. The fee excludes all labour, subcontractor and consultant fees, as well as material costs. The budgeting, tendering, consultation, site supervision, scheduling, site labour, etc. are paid on an hourly basis through pre-determined rate structure.
Flexibility is key to this type of building strategy, and there are many configurations that can be applied. Because the sub-trades and suppliers are being hired directly by the owner, there is "open book" accounting, which means the owner knows the costs of every aspect of the job. This allows the owner to benefit from any savings garnered along the way and to have direct input on quality.
The benefits of this structure include:
Cost savings directed to the owner Fast-track construction schedule Owner has a hands on approach