No mark-ups, no hidden discounts, no kickbacks. That¹s the reason more and more companies worldwide are adopting construction management (CM) as the preferred method of procuring their buildings.

Indeed, says Simon Harwood, MD of specialist CM company ASA Construction Services, one of the major distinguishing features of CM is transparency ­ between the construction manager and the client, and between the works contractors and the client.

"In the first place, the construction manager is appointed by the client and earns fee income only. His motivation is to protect the client¹s interests, not to maximise a profit margin ­ and this is the essential difference between CM and project management.

"Secondly, each works contractor on a CM project is individually appointed ­ and paid - directly by the client. This open book system eliminates the mark-ups and kickbacks often associated with the more traditional main contractor-subcontractor approach.

"What is more, it means that individual contractors stand to benefit directly by finishing on time - and within budget. This eliminates many project delays, with their associated escalations and holding costs. And it prevents a large differential from developing between an original, competitive tender price and the final invoice."

However, Harwood cautions, companies keen to adopt CM should ensure that they employ a specialist CM that is wholly committed to the method ­ not a developer or contractor merely trying to add another string to their bow.

"In addition, CM is by definition non-adversarial, so clients should beware of firms who extract trade discounts or rebates from suppliers or contractors and add them to their own profits rather than passing them directly to the client."

Meanwhile, companies that want to go the CM route should involve the construction manager as early as the feasibility stage of the project, because the research and technological capability that a specialist firm will contribute is best used in the early stages, when most of the costs are being determined.

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