contractors. The goal is to collaborate with the association to work through any budgetary constraints and timelines, while simultaneously developing a customized of work to meet assist
scope the needs of your community. CMs can with all types of construction projects; roofing,
stucco, siding, balconies, waterproofing, paint, plumbing, and construction-defect repairs, to name a few. We highly recommend that the CM you use for your project is involved in the contractor’s contract negotiations alongside your general counsel to ensure that the proper terms are in place to allow your CM to manage the work performed.
The benefits of utilizing a CM during the construction are independent cost verification and site observations performed on behalf of the association. The CM becomes the association’s eyes and ears on the project and reviews all invoices and change orders. Creating separation keeps the contractor accountable for its actions and performance per the contract. Some larger projects may have multiple trades working in the same area. Larger projects can also mean additional billings per month. If a contractor sends multiple invoices, the CM can verify that the work was completed and done as per the contract. If a discrepancy happens between trades, the CM will step in and add input. They are an expert guide to the project and can assist in how to pivot when challenges are presented.
In terms of quality and warranty, the CM is there as the board’s eyes and ears onsite. While the contractor could have every intention to complete the project on schedule and on budget, there are varying factors that can change the outcome. For example, a well-known roofer may have the proper credentials and reputation to perform the project, but what if their crews or subcontractors fail to install key components properly to ensure the warranty? The association will not receive the benefit of the warranty. Here are just some examples of items CMs are reviewing regularly to allow for proper (and timely) corrections to take place on a project: damaged materials, material shortage, improper installation of flashings, underlayment and shingles, foot traffic damage, and roof and nail debris left in common areas.
Change orders are not always avoidable, and when legitimate, the client can rely on the CMs expert opinion to verify any additional charges. This way, the community manager and board of directors can ensure that costs and progress are verified, thereby maintaining trust in their contractor.
Construction Manager at Risk (CMAR) A CMAR is a specific type of approach a general contractor would take on with an association for a design/build project. The CMAR would work alongside a design professional, whether that is an engineer and/or architect, and provide guidance on real-life applications of the designed construction and budget. The goal here is that the CMAR assists the association with value engineering options and design within the budget of the project. With this approach, you are contracting with one entity that is taking on the liability of both the design and construction of the project; however, this is not a traditional competitive bid process. The CMAR would contract directly with their subcontractors and oversee their work. If this is the option best suited for your community project, then having a trusting relationship with your CMAR is crucial to your success.
The CMAR would perform the construction repairs per the scope of work. And to maintain accountability and verification of costs on the project,
it is highly recommended that a
‘construction manager or a different third-party perform site inspections, review invoices, and change orders. The CMAR contract should list this person, as well as their duties. This person would not be a representative of the CMAR firm. Instead, this would be a construction management firm or representative from another general contracting company. By hiring a third-party, the association can ensure transparency and verification while maintaining trust in your CMAR.
The most crucial thing to take away from this is knowing the difference between both approaches and how to determine the best option for your next project. And while no project is perfect, we believe using a construction consultant adds a layer of protection and support. Clear expectations will lead to a successful project on schedule and on budget.
CM vs. CMAR Quick Review Construction Manager
• Prefers to enter a project at conception to assist with scope development
• Does not perform the actual work
• Association will contract with CM and contractor separately
Construction Manager at Risk
• Specific type of approach and contract at project conception that includes design professionals, subcontractors, and specialty contractors
• Performs the actual work
• One contract between association and CMAR; multiple contracts between CMAR and subcontractors
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