Management contracting is a project delivery method that is gaining popularity in the construction industry. It involves the appointment of a management contractor to oversee the project on behalf of the client. The management contractor, in turn, manages the other contractors and suppliers involved in the project. This method has several advantages that make it an attractive option for clients. In this article, we will discuss the main advantages of using management contracting.
One of the most significant advantages of management contracting is its flexibility. It allows the client to make changes to the project’s design and scope during the construction phase. This flexibility ensures that the project can adapt to changing circumstances and requirements. The management contractor is responsible for coordinating the changes and ensuring that they are implemented efficiently. As a result, clients can achieve their desired outcomes without compromising the quality of the project.
Management contracting reduces the risk for the client. The management contractor assumes most of the risk associated with the project, such as cost overruns and delays. They also bear the responsibility for ensuring that the project meets the required quality standards. This arrangement allows the client to focus on their core business while the management contractor handles the project’s details. Additionally, the management contractor has a wealth of knowledge and experience that they can use to ensure the project’s success.
Another significant advantage of management contracting is cost savings. The management contractor is responsible for obtaining quotes from contractors and suppliers, selecting the most suitable ones and negotiating prices. They can leverage their relationships with contractors and suppliers to obtain better prices and pass on these savings to the client. The management contractor also manages the project’s budget and controls costs, ensuring that the project is delivered within the client’s budget.
Management contracting is an efficient method of project delivery. The management contractor oversees the project and ensures that each contractor and supplier delivers their work on time and to the required standard. The management contractor also handles any issues that may arise during the project and resolves them promptly. This efficient management ensures that the project is delivered on time and to the required quality standards.
In conclusion, management contracting offers several advantages that make it an attractive option for clients. It offers flexibility, reduces risk, provides cost savings, and is an efficient method of project delivery. As a result, more and more clients are opting for management contracting as their preferred project delivery method. If you are considering a construction project, it is worth considering management contracting as an option to achieve your desired outcomes.