There are several different ways an owner may want to structure the contract for a Construction Management (CM) approach to delivering a project. Two common approaches are:
When the CM as an agent approach is used, Johnston Builders acts simply as a representative of the owner and all subcontracts are executed between the owner and the sub- trade or supplier. JBL is responsible for providing the services associated with the general requirements of the contract and managing the trades and suppliers. This work is usually performed on a fee basis.
When the CM at risk approach is used, all sub-trades and suppliers execute subcontracts with Johnston Builders. JBL is also responsible for the general requirements of the contract. JBL prefers the CM at risk approach that rolls into a lump sum contract as each phase of the work progresses.
This approach allows the designers and Johnston Builders to work closely together to provide value-added, cost effective, solutions to the owner’s needs. The designers are retained by JBL, who is therefore at risk for the design as well as the quality of construction.
The design-build project can be delivered using either the Construction Management or the Stipulated Price approach.
The Stipulated Price project delivery method does not allow Johnston Builders to add value. The design is completed before the JBL is awarded the work. The owner retains the design team who prepare the construction documents. JBL would submit a price based on these documents.
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