Thursday, March 5, 2009

Asheville NC Builder shares on "Construction Management"

Construction management is a better way to manage construction projects. For years, most people thought the only way they could build was to manage construction projects themselves or hire a general contractor to do the job for them. Recently, however, a third way, construction management, has been gaining in popularity.

Why is construction management gaining in popularity?
For many people, there are drawbacks to traditional general contracting. First, they have no idea what anything is costing them. They have no idea what the general contractor is charging them for overhead and profit. They are putting a huge amount of trust in a general contractor and they are receiving very little information, especially financial information, in return. They have little or no control over quality. There is no ability to relate price to quality so there are often disagreements, or at least confusion, over quality of materials being used or level of workmanship being provided.

How does construction management work?
You are hiring an individual, or a company, to manage your construction projects for you. The construction manager is generally paid a negotiated fee or a percentage of project cost with the mission of completing your project for the lowest possible price, while still maintaining the desired level of quality and performing this within a reasonable period of time. The construction manager engages various contractors as required to perform all work. Often the larger categories of work are put out to bid and contractors are selected based on reputation, quality of work proposed and price.

How does the Advantage Development Co. do it?
We establish a flat fee for management of your project. We enter into a detailed contract which defines scope of work, desired quality level and project budget. The budget is not open ended. Estimates for all major categories of work are obtained and contracts are executed with the contractors we agree offer the best combination of price and quality. You begin construction when you are satisfied with the contractors, the prices and the projected time line.
We work hard to bring your project in under budget. We believe construction management compensation based on a percentage does not motivate the construction manager to bring a project in under budget.

A flat rate does not incent the construction manager to let costs increase, but it still does not particularly motivate the construction manager to come in below budget. Since nearly all clients end up adding in extras, especially if budget permits, our compensation is based on a flat rate for managing the contract work plus either a percentage or a flat rate for any extras you choose to add. We have found this to be a "win - win" because we are motivated to bring your project in below budget so you will add in extras. You win because you can add in the extras you would really like to have when we bring your project in below budget.

Visit Advantage Development Co. today at and "Ask Us Why We Are The Better Builder" in the Asheville & WNC area.

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