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PM/ CM Service impact on project duration

6 replies [Last post]
Mon, 2009-05-25 07:39
Civilila 77
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Hi all,

I am in process of preparing a presentation on impact of following types of PM/ CM Services on project duration (of cource from Project Management company point of view).

1- PM: Pure PM service focusing on project strategies and procedures, construction monitoring role only.

2- PM+: More detailed PM service with basic site supervision, QA/QC and cost planning & monitoring. Suites more fast track project or Client wanting a more in depth service.

3- CM: Provides Client with greater control over the procurement & construction process with providing full package management and site management services.

4- CM+: As per CM with taking a small degree of risk.

5- MC: Act as MC employing trade contractors directly.
6- 2SGPM: same concept of MC, differes in cost.
7- 2SLC: Same concept of MC, differes in cost.

Any advice on comparing these methods specificallyin respect to the impact on overall project duration (time saving) is of a big BIG help:)

Thanks
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Replies

Thu, 2009-05-28 14:53
#1
Samer Zawaydeh
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Joined: 3 Aug 2008
Posts: 1664
Groups: Civil Engineering, Regional Representatives
Dear Civilila,

A good example that I can give you is related to Horizantal project. Say you have a plot with 10 buildings, instead of giving them to 1 contractor, who will commit to finish them in 2 years. You can give them to 2 Contractor who will commit to finishing 5 buildings each in 1 year.

This is simple and clear, and will not cause coordination problems. Whereas, if you give the Civil works to Contractor x, the MEP to Contractor y, and the finishes to contractor z, you will end up with huge and endless coordination problems.

Hope that these examples help.

With kind regards,

Samer
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Wed, 2009-05-27 15:32
#2
Samer Zawaydeh
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Dear Civilila,

I would like to recommend that you start with a comprehensive system as much as possible and to the best of the knowledge of your team and existing systems available to you.

Then you start downsizing the processes and select what is needed per project.

For example, on large projects 1B and above, the client might use a strategy to purchase all the material themseleves. Buying in bulk for all contractors at site will give them better prices and eliminate contractor overheads and financing charges on raw material.

Say 40% of the cost of the project is material, and the financing charges is 10%. Adopting this method will reduce 40$ * 1000 Million *10% = 40 Million = 4% of the cost of the project. Of course, you will need to increase the Client Procurement and Finance Departments overheads.

With kind Regards,

Samer
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Wed, 2009-05-27 06:13
#3
Anoon Iimos
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Joined: 22 Sep 2006
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Civilila,

What PM stands for? Is it Project Management or Programme Management? And CM, is it Construction Management?

Well, IMHO, if you neglect the first word, it comes down to only "Management". And its impact to project duration? I supposed only your "Schedule" can tell!
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Tue, 2009-05-26 01:15
#4
Samer Zawaydeh
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Dear Civilila,

My response will be from the experience that we had running around 30-40 projects during the past two years. The criteria for success in not dependent on the CM/PM. It is dependent on the team working on the project and the cash flow maintained to support their activities.

The key factor is to have an experienced PM/CM at site. You also need an experienced counter part capable of replying with the right decisions. And you need a client who can support the cash flow of the project.

You can set the duration of the projec to the agreement of the two parties. If they have the right experience in the type of project, then it will be achievable.

With kind regards,

Samer
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Tue, 2009-05-26 00:35
#5
Civilila 77
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Joined: 15 Jan 2009
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Thanks Samer for the info.
What I want to know specifically is the time that could be saved on overall project duration by using PM/CM Services comparing with traditinal way of DBB & not having project/ construction management. i.e. by having PM, you might be able to go for package management & fast track approach in preconstruction stage. by having CM, because you can even manage the job on site efficiently, you might be able to reduce the duration in construction satge as well (faster track approach). As a result you might be able to have 5% to 10% time saving by appointing a project managemnet company & 15% to 25% by having a Construction managemnet company & using fast/ faster track approach. Do you think these figures are achievable?
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Mon, 2009-05-25 15:28
#6
Samer Zawaydeh
User offline. Last seen 5 years 20 weeks ago. Offline
Joined: 3 Aug 2008
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Groups: Civil Engineering, Regional Representatives
Dear Civilila,

Basically you start with a Project. The definition of a project is clear. Now you need a method of management to complete the project successfully. I am sure that you will find many examples pro and againt PM/CM.

CM is currently used in large size project in order to reduce the overhead. Depending on the contract that is signed between the client and the CM, Engineer and various contractors, the experience might prove to be successful or not. In most successful experiences, you will find a quick decision making entity that will keep pushing the wheel of the project.

Once you rely on the systematic happening of events, the project duration gets longer and longer.

If you have a specifi question or need examples, please let us know.

With kind regards,

Samer
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