With the construction industry facing a bleak year, now is the time for building clients to be especially careful of sharp practices, hidden "extras" and exaggerated claims.

In short, says Simon Harwood, MD of ASA Construction Services, it is time for clients to switch to the construction management (CM) method of building procurement - and get someone thoroughly knowledgeable working "with" them rather than "for" them.

"The construction industry is, quite understandably, trying to drum up business at present by telling prospective clients in both public and private sectors that now is the time to build, because pricing is so competitive. In fact, the Building Industries Federation says it would be "surprised" if successful tenders now offered contractors any margins at all - and that there is evidence of contractors actually pricing below cost.

"But, while this situation may seem appealing to clients who currently also have tight budgets, it holds many dangers for those who are not themselves construction experts."

For example, says Harwood, contractors desperate to make a margin might be tempted to "load" variation orders and claims, or even to skim payments to subcontractors and create an antagonistic atmosphere in which the client is highly unlikely to get the best results.

The open-book CM method, on the other hand, allows for payments to be made directly to each "subcontractor", and such guaranteed payment leads to more competitive tendering.

"We do not believe sharp practice is common right now, and are certainly not accusing anyone of it, but it has been our experience in other countries that an industry in crisis is an industry open to abuse," says Harwood.

In fact, he notes, it was in just such an unfavourable climate that CM was first widely adopted in the UK and Europe, where it has now largely replaced other building procurement methods due to its proven efficiency in controlling and reducing costs.

"The aim of the construction manager is to ensure that it is the final account and not only the tender price that is competitive - and this is achieved by effective management at every stage of the project.

"Of course, the experienced construction manager also brings to this task a wealth of know-how in a field which, in most cases, is unfamiliar territory for the client - and will use this knowledge to ensure that cost savings are maximised without quality suffering.

"Effectively, the client who opts for CM adds a construction expert to his own management team - a strategy which, we believe, will become increasingly important in these tough times."

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