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