THE CONSTRUCTION MANAGEMENT AGREEMENT
Main Street Building Group's Construction Management Agreement, while a single document, is functionally divided into two phases: The Preconstruction Phase and the Construction Phase.
During the Preconstruction phase, the construction manager acts as a consultant to the owner, assisting the owner and designers by providing review of the design for the purpose of value engineering, assessment of constructability, and cost management. The construction manager’s evaluation of the design from the builder perspective provides experience-based input that often builds construction efficiencies and economies into the design, ultimately reducing construction cost. At certain stages during the design process, the construction manager will perform interim cost analyses in order to assess the development of the design with respect to the owner’s budget. Upon completion of the design, the construction manager prepares a comprehensive cost analysis for the project and presents this analysis to the owner in the form of a Guaranteed Maximum Price proposal for performance of the work.
The Construction phase commences upon the owner’s acceptance of the proposal and thereby authorizes the construction manager to start the construction work. During the Construction Phase, the construction manager changes roles to that of an “at-risk” construction manager / constructor, performing the work for a guaranteed maximum price. An important feature of the agreement is that the owner is not bound to accept the construction manager’s proposal at completion of the Design Phase.