OASBO: The Role of a Construction Manager in Educational Building Programs

The Role of a Construction Manager in Educational Building Programs

Roland Tokarski, Vice President
Trisha Crawford, Marketing & Communications Manager

"How much is the total project going to cost our district?"

"Will our project be completed on time and within our budget?"

"How will we teach our students with construction all around us?

"How can we maximize the money that we have. for our project?"

Designing and constructing a new school facility is an exciting experience for a school district. However, it can also seem overwhelming and time consuming to school district officials who are faced with a growing list of questions to answer and decisions to make.

This is why construction management is becoming increasingly popular on public school building projects. The role of a construction manager is to represent and protect the owner's interests throughout the entire project, from design to completion. By being represented by both an architect and a construction manager, the district is more likely to participate in an enjoyable, successful construction experience. All decisions relative to the building program are made with the benefit of input from both a construction manager and an architect, providing a system of checks and balances that would otherwise not be present.

For years, the traditional approach to contracting for school facility construction has included the following:

The school district hired an architect who developed the plans and specifications.
The district put the project out to bid, typically to four major contractors: general, plumbing, HVAC and electrical.
Each competing contractor submitted a total bid based on bids received from subcontractors, plus an additional amount for overhead and profit margins.
The school district awarded the contract to the lowest bidder in each category.
The general contractor was then responsible to coordinate all the trades and work under the oversight of the architect.

Challenges With The Traditional General Construction Approach

Although many projects have been successfully completed through this approach, there have also been challenges. First, a low bid contractor takes tremendous risk when submitting a lump sum number. Once awarded the project, the contractor may become more concerned with the lump sum contract than with the well being of the school district, leading to inconsistent project goals and an adversarial relationship between the district, the architect and the general contractor.

Second, the general contractor submitting the lowest bid may not always be sufficiently experienced to meet the demands of school facility construction. Since the general contractor is chosen by low bid, the district has no control over what company manages their project.

Third, the district does not benefit from construction expertise during the design phase when the opportunity for cost savings and schedule enhancements are the greatest.

Finally, because a school district's expertise typically lies in the field of education, not construction, the district doesn't necessarily know if they are being treated fairly by the contractors in terms of quality, cost issues and conformity to the plans and specifications.

Advantages Of A Construction Manager

A construction management firm acts as an agent of the school district and protects the district's interests at all times. The firm works to "safeguard your money as their money" as it relates to all building program decisions and can help to alleviate many of the concerns of the traditional approach.

Effective Planning — A construction manager actively works with the architect, school district, local officials, contractors, suppliers and all others involved to ensure the project moves forward on schedule. This planning involves any decisions the district must make in regard to relocation of personnel, alternative construction work hours to accommodate educational programs, and impact of a shortened time schedule.

Cost Effectiveness — A construction manager typically gets paid a fixed fee so their motivation is to work with the district and architect to provide a quality, cost effective building. The construction manager's input regarding plans and specifications during the design phase can be effective in minimizing change orders and potential field conflicts before construction begins, when these issues can cost the district significant money.

Cost Estimating — A construction manager completes detailed line item estimates for the entire building program and works closely with the architect to ensure the design remains within budget.

Claims Reduction — Because a construction manager provides detailed management, document control procedures, and close coordination of the prime contractors throughout the project, the opportunity for unfounded claims by the contractors can be reduced.

Multiple Prime Contractors — Under the construction management approach, the project is broken down into smaller, more manageable components called prime contracts or bid packages. The district receives the advantage of being able to contract directly with the lowest bidding contractor for each specialty, eliminating the associated general contractor markup on each and the potential significant control a large contractor may have over the project. This can alleviate the district's risk. In addition, the bid packages can be structured in a way that encourages participation by local bidders.

Schedule Control/Time Savings — It is the construction manager's responsibility to monitor the prime contractor's progress and keep the project on track. The firm works with all involved parties to ensure that the work is completed within the project schedule.

Site, Safety and Construction Planning — Because pre-planning is a critical factor for the success of a project, a construction manager will plan for safety measures, school functions and construction phasing issues prior to the start of construction to eliminate surprises.

Budget Control — A construction manager monitors the project to ensure that it is completed within the budget, allowing the treasurer to be less involved in the project and to focus on other school finance issues.

On-Site, Full-Time Supervision

A construction manager provides an on-site, fulltime construction professional to represent the district's interests throughout the construction of the project. It is this individual's responsibility to continually maintain the schedule, control costs, and monitor quality to ensure the work conforms to the plans and specifications. This representation will help to minimize the time and effort required by the district personnel towards the project.

Construction Manager Fees

One misconception among many school officials is that a construction manager will cost the district too much money. However, the construction manager's fees typically should not increase the overall project construction costs for the following reasons:

The construction manager's fees take the place of the general contractor's multiple markup and fees associated with the traditional approach.
Through creative value engineering and cost estimating, a construction management firm should be able to generate significant cost savings, which can be applied to other portions of the project.
The construction manager's input should help reduce claims, minimize change orders and control the schedule, resulting in a smooth running project with effective cost and schedule control.

Considering the hundreds of activities and details involved in a building program, hiring a construction management firm to oversee a school-building project is an option a district may want to explore. With the architect, construction manager and school district working as a team toward a common goal, a building program can be a successful experience that will be enjoyed by the community for many years to come.