Construction Management (CM) can take many forms and is used for both small and very large projects. Construction managers can take the place of a general contractor, subcontractor, or work with these people to build something large or small. Some construction management companies will also provide architectural or engineering services in addition to construction management. Construction managers are typically paid by, and represent, the owner of the property where construction is about to take place. This is what they do. The construction of a project will generally follow these lines:

1. Some money to get the ball rolling
2. Have a place to build
3. Rough budget estimates
4. Preliminary engineering if necessary
5. Architectural or rough drawings
6. Final engineering
7. Get cost estimate
8. Seek financing if necessary
9. Get permissions
10. Involve general contractors and / or subcontractors
11. Establish a construction schedule or completion times
12. Refine cost estimates
13. Start construction
14. Monitor the progress and quality of work and materials.
15. Make progressive payments to all subscribers
16. Finish the project and get a Certificate of Occupancy (CO)

The Construction Manager can help you in most of these areas with the possible exception of “some money to get started.” And I wouldn’t rule it out entirely. The CM will have a contractual relationship with the owner to oversee and, in some cases, perform most of the above tasks. The amount of money charged to the owner will depend on which parts of the work mentioned above the CM must complete. Typically, the CM will charge between 4% and 6% of the total construction costs in case it is necessary to manage and participate in all construction related tasks. Basically, the CM will keep the owner informed of the necessary construction sequences and coordinate the various contractors, including architects and engineers, into a group that runs smoothly and will operate cohesively. The CM will closely monitor construction progress, material quality, and workmanship, correcting any deficiencies as they occur. That is what the general duties of the CM will be. Now why would you want to use a CM instead of letting the general contractor do most of these tasks? Easy answer, “COST”. Money money. The general contractor will generally charge 20% to 30% of construction costs as a markup to the owner for profit and overhead. So do the math on a $ 100,000.00 construction project. Construction Manager 5% Fee $ 5,000.00 General Contractor 20% Fee $ 20,000.00 I call that a significant savings that could be used to upgrade your project or keep in your bank account. This is why people use construction managers.