Let's first look at construction management, which I like to term ensuring it gets built right. Though construction management is not necessarily doing the construction itself. The construction manager will clearly manage and control the construction phase of the project. Often, this includes a significant lead in the closeout, and often it includes a lot of work in constructability reviews and long range planning associated with the project. So it is not rigorously and purely the construction phase, but it does spill over to either side. The purpose of construction management is fairly straightforward. It's to ensure that all aspects of construction are executed for the owner safely, on time, on budget and conforming to all standards and guidelines. And then you can see some typical responsibilities. Quality assurance, environmental health and safety, cost managements, schedule analysis, document control, change management. Contract compliance, claims avoidance, inspections, all of these are the typical jobs of the construction manager. But then, thinking about construction manager, I'd like to bring up a couple of other points. First, the relationship with the owner can vary. And there are several different relationships, so I wanna highlight two. First is what is known as the agency construction manager, often known as the owner's representative. And these are professional services on behalf of the owner. The contract is with the owner or the project manager himself. Contractors who are actually doing the work will have contracts with the owner. And the construction manager in this regard reports to the owner or the project manager. Now if we have construction management at risk, that means the construction manager is actually not just responsible. Just serving as the owner's representative but is actually responsible for delivering the work. The contract is with the owner or project manager. But the subcontractors, they have contracts with the construction manager. Reporting, however, will go back to the owner and the project manager. If we take a construction management and we want to map it back to our framework. Let's take a look at a few of the items, first, the management focus. The management focus is on all aspects of construction to include schedule and budget, as well as quality and safety. It interfaces with design in terms of constructability, and they've going to have a focus on change management. In terms of stakeholder engagement, the construction manager is essentially focused on the owner and internal stakeholders. There will be some contact with outside agencies for permitting, but often times those will be handled by the project manager. So the stakeholder engagement from a construction managers perspective tends to be inward facing with some contunitity with the project manager and the owner. In term of impact, the aim is to deliver the construction works the project. And because of that, outside of the impact the project may have, there are gonna be minimal long term impacts. To the organization or to the strategic effect of the organization. In terms of risk, risks are typically known, they can be quantified, and there are established mechanisms within the industry that can be applied to mitigate those risks. In no way is this to denigrate the risks or make them seem less important but those mechanisms are there. I now would like to take a few seconds to talk about project management. Project management is about delivering the project efficiently. As supposed to construction management which is focus primarily on the construction phase. Project management is focus on all aspects of the contract to include design, contracts and procurement, funding, and scheduling. In short, project management is about delivering projects both as efficiently and effectively as possible throughout all phases of development. Now the purpose of project management is to ensure that all aspects of the project delivery are executed for the owner safely, on time, on budget. And conforming to all standards and guidelines. Very similar to the construction manager, however, in this case it involves all phases of the project. This includes design, it will also include construction because often times the project manager will oversee the construction manager, procurement, and close out turnover. Typical responsibilities will include tracking and monitoring project schedule. Funding, cost and budget, packaging and sequencing of contracts, contract interface and review, architect engineer selection, contractor pre-qualification. Design and constructability review, value engineering, permitting and compliance, contract submittal review, and scope and creep review. Now if we take a look at project management, and we take a look at some other points. We need to understand that the project manager works directly, typically works directly for the owner. Now the sophistication of the owner will drive which functions are engaged. And you'll find at times that in project management, the owner, if he has a particular expertise or particular legal requirements. Will reserve some functions which could be applied to the project manager. For example, procurement systems. The contract type can also vary based upon the amount of relative risk between the owner and project manager, as well as the certainty of the scope. Some that are used are lump sum, cost reimbursable time and materials. It's important to understand that the contractors will typically have contracts with the owner, and that they're going to report through the owner or the PM themselves. The construction manager and third party sub contractors, both designing construction can in fact work for the owner or the project manager. And it's often a function of the owners capacity and desire for control. Now, if we take a look at mapping project management into the framework. Let's take a look at the management focus. The management focus for the PM is typically across the entire delivery cycle. So they have to keep an eye on all aspects of the project at the same time. The key challenge will be maintaining interface across all processes. I use constructability review for an example. Ensuring that the design meets a constructability review and that the constructability review was effective as something that you would get from the project manager. Cost and schedule become key drivers, the more technical aspects of the design will go to the design management. The more technical aspects of the construction will go to the construction manager. But the project manager will really keep an eye on cost and schedule. Stakeholder engagement, really the owner remains as the principle stakeholder. However, stakeholder engagement will increase because there are other stakeholders who must be engaged. First, there will be competing and interfacing projects. Particularly if we expanded into a capital program, there'll be other projects which will compete for resources. And other projects which lead very close and require interface and intersection. There's also a greater density of external agencies who must be considered as we expand the phases of the project. The impact really is to deliver the project at the lowest cost to the owner, this is both in terms of cost and schedule. In terms of risk again as with construction management, the risk could be fairly well identified and can be quantified. But the risks expands to include design and hand over, operations and maintenance.
