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06-26-2013 Council Agenda
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06-26-2013 Council Agenda
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74 <br />standing of the local labor market. <br />3. The hiring of a construction manager requires the <br />payment of an additional fee. This perceived disadvantage <br />has generated significant discussion when a public body is <br />considering the use of construction management for the first <br />time. Weinert states emphatically that CM is not an added <br />cost. A construction manager has replaced the general con- <br />tractor and therefore the CM fees have replaced the GC fees <br />which were buried in its lump sum bid. He goes on to state <br />that it has been shown on public projects that the multiple <br />bid approach of construction management reduces overall <br />costs significantly so that the total of the low bids award- <br />ed plus the CM fee is less than the cost of the same project <br />bid under the GC format.123 In Appendix IV, a model <br />cost comparison between construction management and general <br />contracting prepared by C. Edwin Haltenhoff is included. <br />This model supports Mr. Weinert's position. <br />4. There is a lack of standards regarding the qualifica- <br />tions upon which hiring decisions for CM's are based and <br />also regarding an appropriate range of fees.124 Construc- <br />tion management does not require a license as do architects <br />and engineers, nor does it require successful business orga- <br />123 Weinert, "Construction Management: <br />Alternative," op. cit., 18. <br />124 Foxhall, op. cit., 20. <br />23 <br />A Sensible <br />
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