Are you thinking of building or renovating? Do you have a new project you think you need to have managed?
The Project Manager is the Client’s representative assuming the role of Project Co-ordinator and Administrator, with a goal of effective delivery of the Client’s project completed within the established parameters of Budget, Programme and Quality.
A. PROJECT MANAGEMENT:
DURING DESIGN AND TENDER PROCUREMENT STAGE
We believe that a Project Manager must be appointed as early as possible, having authority to undertake the following:
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Convene a meeting of all parties and consultants involved. The meeting to be chaired by the Project Manager with the following agenda:
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Establishing the role of the Project Manager and clear lines of responsibility and communication for the entire team
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Establishing the team hierarchical structure with all consultants reporting to the Project Manager
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Confirming individual roles of the project team
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Establishing the expectations from the project team
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Concept design status and finalisation (if applicable)
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Working drawing process (if applicable)
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Tender documentation and tender process
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Establishing overall time-frame programme for the project
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Updating budget based on finalised concept design
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Set regular Project Control Group (PCG) meetings up to tender date:
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Attended by Client, team participants and chaired by Project Manager
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Monitor programme
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Update budget and financial reporting
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Monitor tender documentation
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Ensure Clients’ expectations are being achieved
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External parties and their inputs are incorporated into the project
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Establish the goal of procuring efficient and complete tender documentation
B. TRADITIONAL FULL PROJECT MANAGEMENT SERVICE
Construction Phase (post tender)
Similar to the pre-tender phase, the construction phase is guided and monitored through continued PCG team meetings up to 'Practical Completion' of the works. Practical completion of the works coincides with completion to a stage fit for occupation by the Client, as defined by NZS 3910:2003.
The PCG meetings' agenda generally follows the agenda outlined in the pre-tender stage above.
Contractors' progress claims are certified regularly in accordance with contract conditions, following evaluation by the Client's quantity surveyor.
Information about the Payment Claim Process
Practical Completion
At the satisfactory completion of the works, a certificate of Practical Completion is issued, which signifies the commencement of the maintenance period. The main contractor and sub-contractors are required to submit their final claims and all outstanding guarantees together with any as-built drawings and maintenance manuals. If a contractor's bond has been requested it may be released following issue of the certificate. Any minor defects are listed and issued to the contractor at the time of practical completion and during the maintenance period.
Maintenance Period
The Project Manager monitors the maintenance period and the release of maintenance retentions. At the completion of the period and when all minor defects outstanding at practical completion have been attended to a Defects Liability certificate is issued.
Comments on the Traditional Full Project Management Service
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The Project Manager acts in the interest of his employer, the principal, throughout the project, with the additional duties required under the standard conditions of the construction contract during the construction and maintenance phases.
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Standard NZS 3910:2003 Conditions of Contract will be used in the execution of the construction phase. These conditions can only be used when the Client’s representative is acting in the defined role of independent Project Manager/engineer within the contract.
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The project management process is a well-established method of project procurement familiar to all consultants, contractors and the building industry as a whole, with well-established parameters and expectations.
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The building tender process is by invitation to competent and proven construction contractors and is fully open and transparent, with a clear audit trail. It is the normal process for collecting tenders.
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Invitation to tender to competent building contractors
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Tendering analysis and recommendation by Project Manager
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Client’s approval of tenderer
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Appointment of contractor
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Efficient tender documentation ensures all aspects of the construction work are included in the contractor’s tender, with the objective of delivery of the project within the established budget. The Project Manager will endeavour to ensure that the Client’s expectations and requirements are incorporated into the tendering process thus minimising variations to the construction contract and bringing the project to a conclusion within the project budget.
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The traditional project management service does not guarantee a maximum fixed price contract. Quality and efficient project management however, ensures a level of documentation which minimises variations and expenditure of the contingency sum, with the objective of delivery of a project within budget expectations.
C. CONSTRUCTION MANAGEMENT SERVICE
The Project Manager (hereafter referred to as “Construction Manager”) would be required to act as ‘Project Manager’ representing the interest of the Client, whilst simultaneously undertaking the role of ‘Construction Manager’, tendering for and delivering the project to a fixed contract sum.
The appointment of the Construction Manager would follow the delivery of full tender documentation by the design team.
The Construction Manager would provide a fixed price contract sum for the delivery of the project in accordance with the tender documentation. The tender would include for the risk element associated with the guarantee of that contract sum.
The Construction Manager would maintain an open-book policy in respect of all construction costs.
The appointment of the building contractor would need to be at the sole discretion of the Construction Manager.
The traditional Client’s tender invitation process to competent building contractors is superseded by the foregoing.
The parties to the contract delivery would be the Client and the Construction Manager.
The contract between Client and Construction Manager would be based upon his prepared tender costs plus an agreed percentage as a construction management fee. This fee would also apply to all Client-requested addition variations to the tendered contract. In the event of a negative variation, the cost alone would be deducted.
It is recommended that the Client appoint an independent quantity surveyor to process progress payments to the Construction Manager and to validate any variation claims based on Client requests.
If considered necessary, the Client continues to engage the services of the architect, quantity surveyor and services consultants for site observation. The Client’s consultants would be directed by the Construction Manager, but be contracted to the Client.
Project specific contract documentation is prepared between Client and Construction Manager, which outlines the obligations and duties of each party.
Comments on the Construction Management Service
The Client is excluded from appointment of the building contractor because the Construction Manager must be assured that the tender is error-free.
The Client would be assured of a fixed price contract sum.
The Client transfers the construction cost risk factor to the Construction Manager, but at a premium.
Dual and potentially conflicting roles of Construction Manager/Project Manager.
Project specific, contract documentation, to be prepared which does not have the established protections offered by NZS 3910:2003.
If you have any questions please contact us