Queen Anne Street, Construction Management

Construction management for property developers:

9th December 2022 | Jamie Barrett | Reading Time: 4 minutes

What you need to know

An early consideration for property developers is appointing trade contractors to deliver the project. If planned carefully and correctly, the procurement element of property development can ensure the smooth running of a project achieving value, time efficiency, and quality; but get it wrong and it can be expensive and disruptive to the entire project.

Construction management is a procurement route that appoints a construction manager to procure, manage, and administer subcontractors on behalf of the client: here’s what you need to know.

What is construction management?

Construction management is a holistic and flexible procurement route with every aspect of the project subcontracted to the most qualified supplier by an appointed construction manager.

Under construction management, the construction manager will procure, manage, and administer multiple trade contracts on behalf of the client.

Benefits of construction management include

Cost savings. By appointing subcontractors directly rather than via a main contractor; construction management is known to be 5-10% cheaper on certain projects.
Quality. Every aspect of the project is subcontracted to the most qualified supplier, resulting in select high-quality elements that work together to significantly improve the overall quality of the project. Construction management also introduces new levels of quality control through its high vetting processes for each part of the project.
Collaboration. The coordinating role of the construction manager creates a non-adversarial environment to get the best from all suppliers.
Time. Construction management enables projects to get started faster than alternative procurement methods and allows design and construction to run simultaneously.
Flexibility. Later phases of the project can be designed while the earlier phases are in construction, enabling the flexibility to change and evolve designs throughout the construction process.
Safety. The construction manager is generally also the principal contractor under CDM regulations, ensuring the project is safe and compliant with health and safety regulations.

Do you need a project manager as well as a construction manager?

A project manager and construction manager fulfil different elements of the project. But, depending on the appointment terms, the project manager’s responsibilities can also be taken on by the construction manager under construction management.

The construction manager’s role is to procure and manage trade contractors to deliver the construction works. The construction manager role is focused on the on-site elements of the project.

The project manager’s role is to manage the day-to-day delivery of the project, encompassing all areas from marketing and administration to creating the budget, cost plan, work breakdown structure, and project programme.

Depending on the scope of the project and the appointment terms, in the absence of a project manager and using the model of construction management, the construction manager may also be responsible for project management.

Who manages the budget?

The project manager (or construction manager acting in the capacity of the project manager) will create and agree the budget and cost plan for the physical construction elements of the project, which should be broken down into trade packages, each with an allocation of the budget.

Utilising the services of a cost consultant, such as a qualified quantity surveyor, will mean that the cost plan can be produced in a format that enables the construction manager to create trade packages from the costs.

Consistent and comprehensive cost monitoring of all the trade packages is essential for keeping the overall project within budget.

Procuring trade contractors

The construction manager will use the cost plan and project programme to procure trade contractors for the project.

The construction manager will put together a tender events schedule, produce all tender documentation, invite suitable contractors to tender for each trade contract, select the most suitable contractors based on agreed criteria and then manage and supervise the trade contracts until completion.

How construction management can rescue a stalled project

With so many internal and external variables affecting construction, a project can stall at any point in its progress. One of the primary causes of this is main contractor insolvency.

If a contractor is suddenly unable to deliver, rapid project recovery is key to minimising the financial impact.

In a situation like this, construction management can help in a way that no other procurement route can. A dedicated construction manager can directly procure the relevant specialist trade contractors for each of the packages still required to deliver the project and is often able to negotiate with the subcontractors previously working for the main contractor.

How Evolution5 can help

Using a professional provider such as Evolution5 makes construction management an accessible procurement route for all developers.

In choosing Evolution5 and construction management procurement, you benefit from our broad knowledge, experience, and expertise gained from contracting and consulting to integrate with your professional team and take the lead in procuring and managing trade contractors.

We can appoint your project with a dedicated construction manager from our technically qualified, skilled, and highly experienced team with extensive, hands-on experience in construction. Our clients benefit from a breadth of knowledge and first-hand experience in construction management and procuring and managing trade contractors.

Evolution5 is a professional consultancy offering project management, construction management, employer’s agent, and contract administration services for projects across London and the South East.

If you have a construction project and want to explore how the team can help you, click the button below or call 023 8040 5073.