Having made its mark in the public sector, the construction management (CM) building procurement method is now gaining popularity among private sector clients impressed by its ability to generate hefty savings of both time and money.

So says Simon Harwood, MD of South Africa¹s only specialist CM company, ASA Construction Services, who notes: "The concept has really taken root in the property broking community, and we are receiving an increasing number of requests to handle commercial and industrial building projects for their clients."

The prime motivation for such referrals, says Mike Brown of international property brokerage Knight Frank, is cost containment. "Clients are obviously very cost conscious in the current economic climate, and the application of CM makes ASA Construction Services highly competitive."

In fact, says Harwood, clients making full use of CM, whether on new developments, building refurbishments or tenant installations, stand to save at least 15 percent of what the project would cost using the traditional procurement method. Certainly, that was the case for Old Mutual Properties, which recently awarded ASA Construction Services the contract to revamp the old Siemens/Nixdorf building in Milpark and ready it for Telkom occupation.

"The savings arise, largely, because the true CM company acts on the client¹s behalf for a pre-determined fee, rather than on its own behalf for a percentage of project cost. Also, CM differs fundamentally from the traditional main contractor-subcontractor approach. Instead, each specialist contractor is employed directly by the client - represented by the construction manager ­ and stands to benefit directly by finishing on time and within budget.

"This system eliminates many delays, with their associated holding costs. And it prevents a large differential from developing between an original, competitive tender price, and the final invoice ­ which is a major concern, especially for clients unversed in the construction industry."

In fact, says James McCormack of property consultancy Bradford McCormack & Associates, the feeling for clients of having "someone on their side" is another major attraction of CM. "Projects done the CM way are not only more cost-effective, but transparent, and clients certainly react well to the fact that they are kept in direct touch with what is going on.

"Add that to ASA¹s track record in empowering emerging contractors and building professionals, and you have what more and more clients ­ and especially owner/occupiers - regard as a winning formula."

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