CM:The Cost Benefits

n Professional oversight by the CM team from the outset of the project helps to reduce errors and misunderstandings between project teams and the owner. This improves general efficiency levels in cost control and auditing, reducing total project cost.

n A well resourced CM team can provide all the professional services required, inside and outside of the design team. This may offer the owner economies of scale on consultancy fees.

n Design can run in tandem with construction, with a competent architect on board: very conducive for fast track building and the resulting cost savings.

n Cost variations and budget estimates can be adjusted quickly and accurately, with improved cash management bringing financial benefits.

n Flexibility of placing separate trade contracts allow the owner re-tendering options during construction. The associated risk to budget estimates must be managed for the owner.

n The owner can realise cost savings by economies of scale, both in the early purchase of materials and in placement of trade contracts.

n Savings can be made by covering the CM team's overheads and general conditions. The use of direct labour, as and when required, will be cost effective.

n In the UK, the Joint Contracts Tribunal recognises that CM can offer savings between 5% and 20% on total project costs, simply through avoidance of disputes between sub and main contractors. Surveys show project cost savings of between 3.5% and 7.5% through increased efficiency alone.

n Surveys also indicate that trade contractors would be willing to reduce their tender prices by between 5% and 10% in return for the improved terms and conditions of payent offered through direct contracts with the owners.

n With the CM chain of command and contractual arrangements there is increased scope for value engineering to be successful, at both the pre and post contract stages, with the benefits realigned by the client rather than a 'main contractor'. Savings between 5% and 10% are expected through successful value engineering.

n The CM's professional duty is to bring the project in within budget. Incentives maybe offered by the client within the fee deal to encourage the CM to perform.