Can you be both principal designer and principal contractor?

Responsibilities on a construction site, construction peru

Construction Management (CM) means different things to different people. So, what is CM really? It is simply a methodology for the execution of construction projects and in effect a contracting strategy. There are important factors to consider when selecting a contracting strategy for a project. In CM, the differentiating factor compared to more traditional contracting approaches is the savings in time and money on the part of the client, as well as the minimization of risk through greater flexibility and project control.

Construction is becoming increasingly complex as projects grow in scale and become more technically challenging. Because CM contracting aligns the interest of construction execution with the interests of the client, the client can make more informed and timely decisions throughout the execution process.

Unit of measure contracting system

When an organization wants to construct a building, it contacts an established general contractor to take care of all the work. In most cases, the organization that functions as the client never deals directly with the subcontractors and never has to worry about the construction process.

Occasionally, the client that needs the construction of the building decides to act on its own as the general contractor. In these cases, he works directly with the subcontractors and is in charge of the administration and organization of all the concepts generated by the work.

Once the builder or architect has received the various bids, he selects the winning contractors and enters into a contract with them that includes the points mentioned above, as well as those additional points that help define the terms and conditions of the work, seeking to be as specific as possible.

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When the work of each contractor begins according to their schedule in the work calendar, they are responsible for complying with the provisions of their individual contracts, working on them simultaneously with the other contractors participating in the project. At certain intervals, usually weekly, the contractors submit to the builder or architect a report of the work completed to date, in order to request payment of their fees with what is known as the progress of the work.

Lump sum contract example

Contract administration (CA) is the practice of planning, negotiating, authorizing, executing, and ensuring compliance with the terms and conditions of a construction contract. CA involves contact with contractors, employees, suppliers, vendors and other service providers. The American Institute of Architects (AIA) also uses the acronym “CA” to refer to the “Contract Administration” services provided by an Architect/Engineer (A/E) during the construction phase of a project.

Program management is the focused application of strategic knowledge, techniques and tools to manage a program’s long-term goals, initiatives and objectives. A program manager is responsible for identifying dependent projects, overseeing those project groups, managing stakeholder relationships, and guiding these efforts to achieve long-term objectives.

Contract Administration (CA) is an acronym that refers to the administration of a contract on a construction project. Not to be confused with Construction Administration, CA in this context refers to the administration services that an Architect will provide on a contract between an Owner and a Contractor.

Lump sum contracting system

The General Contractor is the one who undertakes to comply with a price, delivery time, quality and service determined with the final client from the beginning of the project, taking care that, during his administrative management work, everything flows in harmony to achieve the expected results.

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In the preconstruction phase, the General Contractor is in charge of receiving, analyzing and grounding all the information generated by the architects and calculation engineers, in order to frame it within a price and time frame.

Why is the General Contractor in charge of this? This is mainly because the construction companies have a better notion of the costs and time involved in supplies, deliveries and placements. Therefore, the General Contractor becomes indispensable at this stage, since he solves the great unknowns of every company that undertakes a construction project: how much will it cost, how long will it take, and what alternatives are available to achieve the expected quality while optimizing the budget?

Can you be both principal designer and principal contractor?
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