Delivery Method or Management Method

Delivery Method or Management Method

Order Description

1. Do you believe that program management is a delivery method or method for managing the construction process? Please explain your reasoning.

2. Do you believe that agency construction management is a delivery method or a method for managing the construction process? Please explain your reasoning.

CM 7030 Project Delivery

Week Three: Program Management and

Agency Construction Management

Mini-Lecture #5: Program Management

Learning Objectives

By the end of this lecture, students will be able to:

• Define program management and its attributes;

• Evaluate when program management is appropriate

for use; and

• Recognize the difference between program manager

and project manager

2

Defining Program Management

• A management method for using with multi-structure

or multi-site building programs

– Management of design and construction of multiple

projects or phases called a “Program”

– Method for Owners that lack construction knowledge

and/or resources

– Involved in many or all phases of the construction process

3

Defining Program Management

• Program Management provides:

– Resources to properly manage the work

– Leadership during the construction process

• Can provide contractually binding decisions for the Owner

• Owner can also delegate administrative duties

4

Using Program Management

• Used in situations where Owners lack sufficient

internal expertise or resources to manage many

various elements of construction

– Capital improvement bonds

– Complex multiple phases/structure projects

– Expeditious and efficient development of public projects

• Program management can be combined with any

delivery method

5

Using Program Management

Five Phases of Construction Process:

• Real Estate

– Helps with finding suitable locations for a project

• Financing

– Assists an owner in obtaining funding for a project

• Design

– Leads and manages the development of the project’s design

• Construction

– Leads and manages the physical construction work

• Occupancy

– Arranges for the end-use of the project

6

Program Management –

Management Method or Delivery Method?

• Management Method – The techniques and

processes used for administering and supervising

construction of a project

• Delivery Method – Assigns responsibilities and risk for

delivery of design and construction services

Program Management focuses on administering and leading the

design and construction of multiple projects; Therefore, Program

Management is:

A Management Method

7

Program Management v. Project Management

• General Similarities

– Oversee pre-construction and construction services

– Represent the Owner/Agency of a project or program of

projects

• A contract exist with the Owner

• Authority to act on behalf of the Owner

• Design Phase Similarities

– Feasibility studies

– Project planning

– Assist Owner in developing design criteria and scope

– Manage the design process

8

Program Management v. Project Management

• Construction Phase Similarities

– Assist in negotiating contracts

– Establish and monitor project controls

– Oversee site safety and quality

– Manage and oversee the entire construction process

– Evaluate and process change orders

– Assist with claims management

– Establish and manage a risk management plan

9

Program Management v. Project Management

10

Program Manager

Project Manager

• Oversees many phases of a

construction project with multiple

structures

• Oversees a single-phase project or

only the construction phase for a

multi-building project

• Control construction costs only

– One site (Education campuses,

military bases, medical complexes)

– Multiple sites (Capital

improvement projects, retail

chains)

• Commonly single point of contact

during construction

• Assist in obtaining funding

• Negotiate contracts with A/E,

CMs, and project managers

– Value engineering

• Negotiates contracts with

subcontractors and trades

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