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CM-At-Risk V/S Bridging CM at Risk

V/S CM-Agency: Which is Better & When?

 

STUDENT PAPER

By Khushboo Rupak Kothare

SKEMA Business School

Paris, France / Mumbai, India

 


 
ABSTRACT

Selecting the right construction management project delivery method is the most important decision which is made by the owner before starting any construction project. However, it is easy to get confused when it comes to construction management project delivery methods. But, it is extremely important for the owners to know and understand these methods before starting any construction project. During making the decision the owner should know and have a clear understanding of all the options available and should compare each project delivery method’s advantages & disadvantages to maximize the objectives and minimize the risk. Selection of the most appropriate construction management project delivery method reduces the risk & improves the likelihood of attaining projects quality, cost and schedule goals. Selection of the right project delivery method has a direct impact on the level of success of the project. Hence, it is important to know the numerous factors which should be taken into account while making a decision. While there are many different types of delivery methods, for our purpose, we will discuss the difference between the three major delivery methods and understand which method is most appropriate to use in a particular situation. To explain this, we have used Disjunctive Reasoning to rank our criteria and further, we came to the decision of which construction management project delivery method is the best with the help of Compensatory Model of Additive Weighting Technique.

Keywords: Construction Management, Project Delivery Methods, Construction Management Agency, CM at Risk, Bridging CM at Risk.

INTRODUCTION

Globalization has led to rapid development of construction projects and the research has identified the increase in projects from past 100 years. The Construction Projects are large in size and it plays a significant role in the economy. With the evolution of construction projects, they tend to grow larger and have more complexity. In recent years projects have witnessed an increasing number of construction failures. Project owners are continually attempting to balance power, responsibility and control. However, do owners have confidence in their ability to meet quality, schedule & budget? Are they sure to know each and every contractual policy? Are they trained enough to deal with the issues?

The fact is unless an owner undertakes a great deal of construction, he reasonably is not aware that there can be many different ways of structuring a construction project. Even though an owner is frequently involved with construction, there is a possibility that he may not realize that his regular approach to construction is not the only way that it can be done, and he most probably is not familiar with the manifolds of variations in structuring construction projects.

Project delivery method selection is of very high importance. It’s a system used by owners for organizing and financing operations, maintenance of services, design, and construction by entering into legal agreements with one or more entities. This selection is done at the beginning of a project. This is the best position that the owners can be in to affect its outcomes. There isn’t a best or worst form of construction project delivery. But each approach has corresponding advantages and disadvantages depending on the circumstances and situation. The project owner should as such select a method wherein its advantages would maximize his goals of the project and its disadvantages would be of least importance to him.

STEP 1: Problem Recognition, Definition and Evaluation

Construction Delivery Methods are easy to get confused with, however, a better understanding of them is important to select one for the project. The level of their success mainly depends mainly on selecting the correct delivery method.

This article will thus identify and discuss the types of construction project delivery methods such as CM Agency, CM at Risk and Bridging CM. It will also describe the advantages and disadvantages of using these methods with a view from a practical standpoint, to assist owners in selecting a method that best fits their project.

To summarize this paper is mainly written to answer the following questions:

  1. What are the differences between CM-At-Risk, Bridging CM & CM Agency?
  2. When & under what circumstance each method would be most appropriate to use?

More…

To read entire paper, click here

 

Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].

How to cite this paper: Kothare, R. K. (2018). CM-At-Risk V/S Bridging CM at Risk V/S CM-Agency: Which is Better & When?, PM World Journal, Volume VII, Issue VIII – August.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/08/pmwj73-Aug2018-Kothare-cm-at-risk-student-paper.pdf

 



About the Author


Khushboo Rupak Kothare

Mumbai, India

 

 

 

 

Khushboo Kothare is an MSc student at SKEMA Business School, Paris studying Project & Programme Management and Business Development. She holds a Lean Six Sigma Green Belt and is certified in Project Management Prince 2® Foundation, Agile Project Management (AgilePM®) Foundation, Certified Associate in Project Management (CAPM) and Certified Green Project Manager (GPM-b™). She originates from Mumbai, India where she studied Management Studies (BMS) and also holds a Master degree in Commerce (MCOM-Management). She has worked for First Advantage Private Limited in India as a Client and Candidate Associate for a year and thereafter at Intelenet Global Services in India as a Senior Customer Service Executive (Senior Underwriter) & Quality Analyst for more than a year and a half followed by her internship at Balshoi SARL in France as an Intern Business Developer for five months.

Khushboo can be contacted through mail at [email protected] and also on LinkedIn at 422785137.