Review:
Construction Manager At Fixed Price
overall review score: 4.2
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score is between 0 and 5
The 'Construction Manager at Fixed Price' (CM-FP) is a project delivery method where a construction manager is engaged to oversee a building project with a predetermined, fixed fee or price. The CM acts as a consultant during the design phase and then as a builder under a fixed-price contract, providing construction services within an agreed budget. This approach aims to balance cost control, workload management, and collaborative project delivery.
Key Features
- Fixed-price contractual agreement for construction services
- Early involvement of the construction manager during design phases
- Shared risk and responsibility for project costs
- Emphasis on collaboration among owners, design teams, and contractors
- Clear scope and budget from the outset
- Potential for fast-track construction due to early planning
- Flexibility in project modifications within scope
Pros
- Provides cost certainty for owners and stakeholders
- Encourages collaborative planning and communication
- Potentially faster project completion through early coordination
- Clear financial expectations reduce budget overruns
- Flexibility to incorporate changes within defined scope
Cons
- Requires detailed upfront planning which can extend initial phases
- Less competitive pricing compared to open bidding, potentially leading to higher costs
- Risk of scope creep if not properly managed
- Owner bears some obligation for unforeseen costs if scope expands
- Dependent on the competency of the construction manager