Construction management form of contract is a contract where the owner contracts with a construction manager for his/her expertise in managing the construction process.
In essence, construction management form of contract is an agreement between the owner and a construction manager, where the construction manager provides his/her services to the owner during the construction process. The construction manager is responsible for the overall management of the construction process, including the design, construction, and completion of the project.
There are three types of construction management form of contracts: agency construction management, at-risk construction management, and hybrid construction management. Each type of contract has its own unique features, advantages, and disadvantages.
Agency construction management is where the construction manager acts as an extension of the owner and is responsible for managing and coordinating the project. The construction manager works with the owner to select the design and construction team, and provides oversight and management throughout the process. The construction manager is not responsible for any construction risk and does not have any financial stake in the construction process.
At-risk construction management is where the construction manager takes on the risk associated with the construction process. The construction manager is responsible for the design, construction, and completion of the project. The construction manager also manages the costs and schedule of the project. This type of contract is more complex and requires more paperwork and documentation.
Hybrid construction management is a combination of agency construction management and at-risk construction management. The construction manager provides both agency and at-risk services, depending on the needs of the owner.
Overall, construction management form of contract is a popular choice for owners who want to ensure the success of their construction project. It provides owners with the expertise of a construction manager and helps them to manage risks associated with the construction process. With the right contract in place, owners can be confident that their project will be completed on time, within budget, and with the highest quality.
