Construction/Development Management Program
Construction Project Management is the overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a function and financially viable project that will be completed on time within authorized cost and to the required quality standards.
Unlike a general construction contract where a contractor is given total responsibility to build a project for an estimated cost, the construction manager works on a fee basis and acts as a professional consultant/supervisor for the owner throughout the entire construction process. The owner is directly involved in the planning, scheduling, selection of subcontractors, signing of contracts and payment to all vendors/suppliers. The construction management approach works best when the owner has a comfortable level of experience with the entire construction process.
One Source Development Solutions offers a full service construction management program which solely serves the needs of the client. Whether our client is an individual home builder, a commercial or residential real estate developer or a financial institution, One Source provides service levels that are unsurpassed.
At One Source,
- We customize our services to meet the specific needs of our communities
- We provide proven leadership
- We are committed to excellence in service
- We educate
- We invest in people
- We invest in technology
Partnering with One Source will insure your Construction Project
Comes to life on time and on budget!
Typically, the construction industry includes three parties: an owner, a designer and the builder (general contractor). Traditionally there are two contracts between these parties as they work together to plan, design and construct the project. The first contract is the owner-designer contract, which involves planning, design and construction administration. The second contract is the owner is the owner-contractor contract, which involves construction. An indirect , third-party relationship now exist between the designer and the contractor due to these two contracts.
An alternate contract replaces the two traditional contracts with three contracts: owner-designer, owner-construction project manager and owner-builder. The construction project management company becomes an additional party engaged in the project to act as an advisor to the owner, to which they are contractually tied. The construction manager’s role is to provide construction advice to the designer, on the owner’s behalf, design advice to the constructor, again on the owner’s behalf, and other advice as necessary.
One Source will insure that the construction experience is on time, on budget and as little of a distraction to our clients as possible. Our services are broken down into the following categories:
- Pre-Construction
- Construction
- On-site Management & Inspections
- Project Payments & Change Orders
- Project Closeout
Management Services:
Pre-Construction Phase:
- Site Selection-Work with Owner to review and compare potential sites for the project
- Insure all the appropriate permits are in place and active prior to any construction
- Work with Owner and consultants to establish initial project schedule
- Work with Owner to establish optimal procedure for selecting contractor
- Develop lists of contractors, based upon reputation, specialty, and reference review
- Prepare and/or review cost budgets in order to avoid costly over-runs
- Review all contract documents to insure our clients are fully protected
- Coordinating bid packages
- Analyze and evaluate bids
- Prepare a preliminary construction schedule for the entire project
- Attending all construction conferences, as requested
Construction Phase:
- Develop schedules of contractor deliverables
- Coordinate and monitor the work to be performed by all contractors to project completion
- Verify all materials furnished and work performed in accordance with drawings, specification and contract documents
- Coordinate the efforts of the contractors to insure the project stays on schedule
- Track project budget and schedule on a weekly basis
- Coordinate the services of the Owner’s testing firms
On-site Management & Inspections:
- Maintains staff at the job site for coordination and inspection of the work
- On-site organization and lines of authority are established in order to carry out the owner’s overall plans in order to insure efficient construction
- The owner is assisted in obtaining general building permits and certificates of occupancy
- As necessary, One Source managers will regularly hold meetings to discuss procedures, progress, problems, scheduling, etc.
Project Payments & Change Orders:
- Construction Manager will prepare jointly with the contractor, a schedule of estimated value of the main areas of the work totaling the amount of the contract
- Assist each contractor in the preparation of progress payments, final payments, review and make recommendations for approval in accordance with the owner’s procedures
- All applications for payment are submitted through the construction manager
- Will receive and review all change order requests from the contractors
- After reviewing the changes proposed by the contractor, One Source will either recommend or advise against the proposed changes to the owner for final approval/denial
Project Closeout:
- One Source will prepare punch lists with the owner
- Will insure that these items are completed in an expedited manner
- Assist in establishing dates of Substantial and Final Completion
- Check warranties, guarantees and service contracts and forward to owner
- Coordinate and expedites the contractors preparation of operating manuals
- Receives and verifies all releases of claims required prior to issuance of final certificate of completion and final payment to contractors
- Will recommend the withholding of payments to contractors to protect the owner
Advantages of Construction Management compared to the
Traditional Lump Sum General Construction Approach
More Comprehensive Responsibilities:
- A construction manager (CM) is often selected early in the budget development process before the design team is selected to assist the owner in establishing a realistic budget and schedule that will be used to secure all financing, and then secure appropriate and competitive design proposals
- The construction manager often becomes the owner’s advocate for key issues during both design and construction phases by understanding the owner’s experience on other facilities, and by the construction manager’s concern for longevity, durability and constructability
Improved Focus:
- A general contractor typically is less motivated to work with the owner to improve quality and costs, and is more focused on maximizing his/her profit
- The construction manager’s compensation is typically identified prior to selection. Consequently, the CM is focused on helping the owner and designers produce a set of Bid Documents that is within budget, minimizes the owner’s risks, achieves the owner’s schedule and increases the value the owner ultimately receives from the project budget
Greater Teamwork:
- The owner usually has no influence regarding who the general contractor’s personnel will be under the traditional lump sum GC approach
- The owner selects the team to represent the owner under the CM approach based upon their track record
- The general contractor can more likely develop an adversary relationship with the owner and designers under the traditional lump sum bid approach
- The relationship a construction manager has with a client is typically as an extension of the client’s staff hired for the purpose of promoting project teamwork besides cost/schedule/quality control on the project
Greater Staff Flexibility:
- A CM can give an owner greater flexibility in dealing with turnover and re-assignment of personnel within the owner’s staff
- Having a CM acting as an extension of the owner’s staff also permits current staff to focus more on their other responsibilities beyond the project
Improved Project Procurement Strategies:
- The CM approach is more conducive to accommodating fast-track schedules, early procurement of long lead time materials/equipment, and sales tax saving strategies
- Fast-track schedules are often used to take advantage of more favorable construction seasons while design is being completed for the building finishes. This often results in cost savings
Greater Reliability and Creativity:
- Given that a CM typically provides cost estimating during the initial owner budgeting process, and further cost estimating and value engineering during the design phase of the project, costly and time consuming rebids are more common under the traditional GC approach
- Value engineering and cost reduction ideas are identified when they can still be implemented into the design
Improved Cost Control:
- The CM usually monitors the architect/engineers design to avoid proprietary specifications which can be very costly to a project due to decreased bid competition
- Prices for trade contractor work are typically higher and more difficult to control under the GC approach
- The owner avoids the general contractor’s markup on change orders under the CM approach. Trade contractors submit their cost directly to the CM for review in the format required by the construction manager within the bid document provisions prepared by the CM
- The CM typically applies no markup on changes unless there is a major change expanding the size of the project (i.e. the CM typically has no financial incentive in Change Orders which are universally known as a significant revenue source for general contractors
- Understanding methods commonly used to increase the value of Change Orders, the CM is constantly vigilant towards protecting the owner’s budget
- Value engineering and cost reduction ideas are identified when they can still be implemented into the design
One Source Development Solutions serves it’s Clients by offering a comprehensive process of professional Construction Management throughout the project cycle. It is our belief that the ultimate success of a project rests upon the basic foundation of teamwork that must be built and fostered by the various professionals serving on the project team.
Through our past experiences, we have developed integrated systems and procedures that orchestrates each team member’s expertise in an effective and meaningful manner for the purpose of controlling time, costs, and quality. In fact, the most successful projects are those when the project team is assembled at the inception of the project. This allows the team to address and resolve all the critical issues before construction begins; and while significant savings can still be realized.
At the inception of a project, different parties want different things. The Owner wants a finished, high quality product. The Architect wants to design the Owner’s vision. The General Contractor wants to build it. The only obstacle to fulfilling the project is costs. This is where having a professional Construction Management Team in place from the beginning gives the Owner an advantage.
We have found, through experience, that 90 – 95% of all potential savings take place prior to the actual construction period. That is the time when costs can be more easily anticipated, analyzed and negotiated. It will also result in more accurate scheduling, minimize change orders, and make for a very successful project.