A construction manager (CM) is a firm or professional that manages the planning, cost, schedule and execution of a construction project for an owner, either as the owner’s advisor with no responsibility for construction cost or as the builder that guarantees a price.
The same title covers two different relationships. An agency CM, sometimes called CM as advisor, works for a fee and represents the owner; the owner holds the trade contracts and carries the cost risk. A construction manager at risk (CMAR) also advises during design, but then commits to a guaranteed maximum price, holds the trade contracts and carries the risk of overruns. Which one a project has decides who answers when the budget breaks.
What a construction manager does
- Preconstruction. Estimates, schedules, phasing plans and constructability reviews while the design develops.
- Procurement. Packaging the work, prequalifying trade contractors and running bids.
- Construction. Coordinating trades, tracking cost and schedule, managing safety, quality and change orders.
- Closeout. Commissioning, punch lists, warranties and turnover of systems to the operator.
Agency CM vs CM at risk
- Who holds the trade contracts. The owner, with an agency CM; the CM, with CMAR.
- Who carries cost risk. The owner, with an agency CM; the CM up to the GMP, with CMAR.
- Whose side the CM is on. An agency CM is purely the owner’s representative; a CM at risk is both advisor and contractor, which owners manage through open-book pricing and audits.
In parking projects
- Sequencing work in an operating garage so spaces stay open and revenue keeps flowing.
- Coordinating structure with PARCS, guidance, cameras and EV charging, which often arrive under separate contracts.
- Commissioning systems and handing them over to the people who will run them.
The Parkonomics view
The question to ask is not whether a project has a construction manager but which kind. An agency CM gives the owner an independent advisor; a CM at risk gives the owner a price guarantee. Both are useful. The trouble starts when an owner expects the independence of the first and the guarantee of the second from the same firm.
Related terms: Construction Manager at Risk, Guaranteed Maximum Price, Design-Bid-Build, Design-Build, Progressive Design-Build (PDB), OSHA
Further reading: Rethinking Future Proofing, Part 3: Construction and Commissioning