What is Construction Management?

Construction management is a system of building whereby the owner contracts directly with subcontractors and suppliers.  This eliminates the high markup of duplicated overhead and profit of traditional construction methods.  The purpose of construction management is to coordinate a construction program, which maximizes efficiency, minimizes costs, and allows the owner to maintain control of the project.  This begins during the design phase and continues through all aspects of the project.

TRUE SAVINGS

One of the ways in which construction management differs from conventional contracting results from the bidding process.  Under conventional contracting, the client pays for the maximum amount of materials, at the highest prices, and under the worst conditions.  In short, because the contractor is simply given a set of plans with which to prepare his bid, he must safely estimate every aspect of construction, allowing room for errors, omissions, un-bid work, materials, weather, contingencies, legal costs, etc.  He will also add in a percentage fee to each of the subcontractor pricing (up to 15%).  Any savings resulting from overestimation and from markup for subcontractors become profit for the contractor.  An organization acting as its own general contractor has a true savings equal to what would normally be the general contractor's profits less the construction management costs.

CONSTRUCTION MANAGEMENT FOR CHURCHES

Church construction, unlike other construction methods, encourages congregational involvement to reduce costs, taking advantage of the many special talents inherent to church families.  There are many ways a congregation can participate in the construction.  And as always, any savings go directly to the church.

OPEN-BOOK ACCOUNTING

Moran Engineering Services will do all the record keeping, contract writing and contract management, and process all requests for payments, but the organization has the final approval.  The Building Committee or its designated representatives review each payment and authorize the checks.  This way, you maintain control of both the money and the quality of the work.

PAY AS YOU GO

By the organization acting as the general contractor, no one brokers the organization's money.  No up-front construction management fees are required.  Rather than paying interest on a big loan, the organization keeps all of its money in a bank account earning interest, paying each bill directly to the sub-contractors as the work is completed.  Interest is money most organizations never consider when taking a bid from a general contractor.  With construction management, you are on the winning side of the interest game.

INCLUDED IN CONSTRUCTION MANAGEMENT SERVICES:

Preconstruction	Construction	Post-construction
Scheduling Phasing Plans Regulatory investigation Zoning and code compliance Bid packaging Subcontractor pre-qualification Status reporting	Scheduling Quality control Authorization for payment Safety management Subcontractor management Status reporting Change management	Certificate of occupancy Warranty programs