Delivery Method or Management Method

Delivery Method or Management Method Order Description 1. Do you believe that program management is a delivery method or method for managing the construction process? Please explain your reasoning. 2. Do you believe that agency construction management is a delivery method or a method for managing the construction process? Please explain your reasoning. CM 7030 Project Delivery Week Three: Program Management and Agency Construction Management Mini-Lecture #5: Program Management Learning Objectives By the end of this lecture, students will be able to: • Define program management and its attributes; • Evaluate when program management is appropriate for use; and • Recognize the difference between program manager and project manager 2 Defining Program Management • A management method for using with multi-structure or multi-site building programs – Management of design and construction of multiple projects or phases called a “Program” – Method for Owners that lack construction knowledge and/or resources – Involved in many or all phases of the construction process 3 Defining Program Management • Program Management provides: – Resources to properly manage the work – Leadership during the construction process • Can provide contractually binding decisions for the Owner • Owner can also delegate administrative duties 4 Using Program Management • Used in situations where Owners lack sufficient internal expertise or resources to manage many various elements of construction – Capital improvement bonds – Complex multiple phases/structure projects – Expeditious and efficient development of public projects • Program management can be combined with any delivery method 5 Using Program Management Five Phases of Construction Process: • Real Estate – Helps with finding suitable locations for a project • Financing – Assists an owner in obtaining funding for a project • Design – Leads and manages the development of the project’s design • Construction – Leads and manages the physical construction work • Occupancy – Arranges for the end-use of the project 6 Program Management – Management Method or Delivery Method? • Management Method – The techniques and processes used for administering and supervising construction of a project • Delivery Method – Assigns responsibilities and risk for delivery of design and construction services Program Management focuses on administering and leading the design and construction of multiple projects; Therefore, Program Management is: A Management Method 7 Program Management v. Project Management • General Similarities – Oversee pre-construction and construction services – Represent the Owner/Agency of a project or program of projects • A contract exist with the Owner • Authority to act on behalf of the Owner • Design Phase Similarities – Feasibility studies – Project planning – Assist Owner in developing design criteria and scope – Manage the design process 8 Program Management v. Project Management • Construction Phase Similarities – Assist in negotiating contracts – Establish and monitor project controls – Oversee site safety and quality – Manage and oversee the entire construction process – Evaluate and process change orders – Assist with claims management – Establish and manage a risk management plan 9 Program Management v. Project Management 10 Program Manager Project Manager • Oversees many phases of a construction project with multiple structures • Oversees a single-phase project or only the construction phase for a multi-building project • Control construction costs only – One site (Education campuses, military bases, medical complexes) – Multiple sites (Capital improvement projects, retail chains) • Commonly single point of contact during construction • Assist in obtaining funding • Negotiate contracts with A/E, CMs, and project managers – Value engineering • Negotiates contracts with subcontractors and trades