Construction Management – (CM)


The idea of Construction Management centers on introducing Wilkie Construction Company, as the Owner's acting agent and manager, for the complete building process.

"IF" the Owner and the Contractor enters into a Construction Management delivery system, then the Contractor may aid the Owner in contractual arranging for the Architectural Designer-of-Record and his consultants for the project.

While Wilkie will not hire the Owner's Design-of-Record for this project, Wilkie will perform all aspects of the construction project. The Construction Manager insures that all efforts and all construction aspects are coordinated, but not repeated right from the start of the design process to final delivery.

There are three benefits using the Construction Management (CM) approach:

  • It brings the General Contractor's knowledge and expertise to the Architectural Team members - early in their design phases.
  • It puts into place a construction system which controls time, money and materials and works for the Owner's best interest.
  • It allows design and construction to advance currently thus saving time and therefore money for the client and the contractor.

In a Construction Management (CM) relationship, Wilkie serves as a consultant to the Owner in the entire construction process. As a Construction Manager, Wilkie advises the Owner of the construction time, the total schedule and cost. As a Construction Manager, Wilkie may or may not do some of the trades of work, per the contractual arrangement with the Owner.

However, CM @ Risk ([email protected]) contract will have a Guaranteed Maximum Contract Sum. Whereby the Owner wants to "CAP" his financial exposure for total cost - subject to changes in thes scope of work resulting in additive monetary change orders or change order directives for extra Time and Money.

In a Win-Win-Share relationship and as an added incentive the Owner and the Contractor will enter a "split-savings" contract arrangement...i.e.50-50, 60-40, or 67-33. These are monetary savings to each party when the total "original" CM @ Risk is less than the specified contract amount. However, change orders must be kept separately in order for the "split-savings" contract arrangement to be fairly and equitably accounted.

Above the Cost-of-the-Work (see section below – Cost-of-the-Work, that is Job Cost vs. General Conditions) the Contractor will receive either a specified percentage or a lump sum Fee above job cost for their office overhead and profit. The Owner will be billed for the actual Cost-of-the-Work from beginning to completion plus his CM Fee.



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