Management Contracting is a fast track strategy which overlaps the design and construction stages allowing the build to commence before the design is complete. The Management Contractor manages the overall contract in return for a fee. As the Contractor is appointed early on in the design they can advise on buildability. A ‘contract cost plan’ is utilised to control the development of costs, although actual costs cannot be obtained until the design information is complete.
Employment
The Client employs the Architect/Designers, Quantity Surveyor, Structural/Service Engineers & Management Contractor. The Management Contractor employs the Work Contractors
Roles
• The Architect/Designers are responsible for the design
• The Management Contractor integrates the trades and is responsible for the quality of workmanship
• The Quantity Surveyor is responsible for cost planning and control
Liability
Ultimately, the Management Contractor is not responsible for the defaults of Works Contractors, the Client is
Benefits
• The Contractor assists early on in the design stage
• This is good for complex projects where requirements are difficult to ascertain up front
• Requirements can be changed over the course of the project (though they should be avoided at all costs)
• Contractors often price cheaper as there is less risk involved
Risks
• An experienced builder is needed
• There can be site problems if information is not co-ordinated well
• The Contractor must pursue the works contractor for losses, through courts or at arbitration if necessary. But if nothing comes of it ultimate responsibility lies with the Client, who must also pay all related costs