The most important disadvantage of many Construction Management undertaking agreements is that important parts of the entire services for which the Construction Manager is remunerated are non capable to competitory command.
Consequently, it is much less likely that the Owner will be charged the lowest possible ‘market rates ‘ for these services.
Alternatively, under CM as Constructor, and particularly when no fast-tracking is intended, these concerns can be mitigated by set uping a guaranteed maximal monetary value, or by change overing the Construction Management services contract to a stipulated monetary value building contract prior to the beginning of building.
Unless and until this happens, Owners should be cognizant that the Construction Manager is non contractually committed to the building cost estimation and that there exists the potency for important unforeseen cost additions.
This is an of import factor as the successful completion of one trade bundle is to a big grade of reliant upon the satisfactory execution of earlier or related bundles.
The building director must be after the plants to guarantee continuity and avoid possible hold claims against the principal.
if the Construction Manager is paid extra money for extra clip spent on the undertaking ) .
Contractual agreements that may hold this consequence should be avoided.
if there is a cost plus a per centum constituent in the Construction Management services contract ) .
There can besides be a constitutional deterrence to finish the work every bit rapidly as possible ( e.g.