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: <br />Construc~ion Manasaer with Multiale Prime Contractors <br />Contrad to provide construction manager senrices is awarded to organization determined to provide the Owner <br />with the best experience, team, and "fiY'. Owner awards contrads to multiple "prime" contracto~ groups by trade <br />(i.e., concrete, mechanical, electrical), or by phases (i.e., Building A, Building B, etc.). <br />Advantages <br />• CM firm can provide budget, schedule, and value engineering input. <br />• CM firm wili manage all aspects of contractor selection and bid process. <br />• Bid packages can be established to limit the number of prime contracts let. <br />• CM wiil negotiate contracts on behalf of the Owner. <br />Disadvantages <br />• Owner contracts directly with contractors and maintains contractual liabiliry. <br />• CM firm has no contractor contractual liability and is not "at risk". <br />• Owner's contractual liabiliiy increases with the number of prime contracts let. <br />• Large potential for cost growth (coo~dination problems managing multiple prime contractors, change <br />orders, claims). <br />• Use of multiple prime contractors introduces a"redundancy cost" into the overall project cost to pay <br />for multiple contractor overhead costs and increased Owner management costs. <br />• Project may experience contractor bonding cost increase. <br />• Significant potential for scheduling impacts (coordination problems managing multiple prime <br />contractors, delays, impacts, disruptions). <br />