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 œProgram “ 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