A CM Multiple Contracting Cost Model

by C. Edwin Haltenhoff, Michigan Technological Univ, Houghton, MI, USA,

Document Type: Proceeding Paper

Part of: Construction Management: A State-of-the-Art Update


The original purpose for construction management was cost savings through time savings and efficient operations. As the CM system expanded in use and scope of services other very significant benefits emerged. Controversy persists over the economics of the CM system as compared to the general contracting system. CM advocates claim the system has an undisputed logic that extracts maximum economic benefits. GC advocates claim their system of bidding through a general contractor produces the lowest possible price for the project. The opportunity to bid and construct side by side identical projects using both systems will probably not occur, allowing the controversy to continue. This paper supports the economic advantages of CM when a multiple contracting format is utilized. The support is based on actual data collected during the bidding of multiple contract CM projects in the State of Michigan.

Subject Headings: Contracts and subcontracts | Construction costs | Construction management | Economic factors | Bids | Project management | Claims | Pricing | Michigan | United States

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