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Are you considering using the management contracting procurement method for your construction project? In this article, we will delve into the advantages and disadvantages of this procurement method to help you make an informed decision.

Introduction

When embarking on a construction project, one of the key decisions you have to make is choosing the right procurement method. The management contracting procurement method is one option that offers both advantages and disadvantages. Let's take a closer look at what this procurement method entails and weigh the pros and cons.

What is the Management Contracting Procurement Method?

Management contracting is a procurement method where the client appoints a management contractor to work collaboratively with the design team to deliver the project. The management contractor acts as a coordinator between the client, design team, and trade contractors. This method involves an early start on-site for the management contractor before the design is completed, allowing for some overlap between design and construction activities.

Advantages of the Management Contracting Procurement Method

  1. Early Start on Site: One of the main advantages of management contracting is the early start on-site. This can help accelerate the project timeline and potentially reduce overall construction time.

  2. Flexibility: The client has the flexibility to make changes to the design as the project progresses, as the management contractor is involved early on in the process.

  3. Expert Input: With the management contractor's expertise, clients can benefit from valuable input and advice throughout the construction process.

Disadvantages of the Management Contracting Procurement Method

  1. Cost Uncertainty: As the design is not fully complete before the start of construction, there may be uncertainties regarding the final project cost.

  2. Risk Allocation: The risk allocation in management contracting can be complex, and the client may bear more risk compared to other procurement methods.

  3. Potential for Disputes: With multiple parties involved in the project, there is the potential for disputes to arise if communication and coordination are not managed effectively.

Construction Management Procurement Method: Advantages and Disadvantages

When comparing the management contracting procurement method to the construction management procurement method advantages and disadvantages there are key differences in terms of how the project is managed and delivered.

Advantages of Construction Management Procurement Method

  1. Collaborative Approach: Construction management involves early involvement of the construction manager, allowing for a collaborative approach to project delivery.

  2. Cost Transparency: Clients can have greater transparency when it comes to costs, as the construction manager can provide detailed cost estimates throughout the project.

  3. Quality Control: With construction management, there is a focus on quality control and ensuring that the project meets the client's expectations.

Disadvantages of Construction Management Procurement Method

  1. Time Constraints: Construction management can require quick decision-making, which may not be suitable for all clients or projects.

  2. Limited Contractor Input: In some cases, construction management may limit the involvement of trade contractors, which can impact the overall project outcome.

  3. Communication Challenges: Effective communication between the client, construction manager, and design team is crucial for successful project delivery.

Conclusion

In conclusion, the management contracting procurement method offers advantages such as early start on-site, flexibility, and expert input. However, it also has disadvantages, including cost uncertainty, risk allocation, and potential disputes. When considering this procurement method for your construction project, weigh the pros and cons carefully to make an informed decision. If you need assistance in choosing the right procurement method, consult with experienced professionals in the field for guidance.

 

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