Kenny, I once had a project were the cost estimate jumped from DD to CD and the owner used the words “Bait and Switch”.

I was an architect/cm and educator on the subject of estimating. Estimating can be like playing with a bunch of loose wires. I once wrote a one page primer for clients on the estimating phases and the percentage of accuracy and what we would do if something jumped.

There are three components to every line item on a standard construction estimate 1) The Quantity, derived from the take-off – Not that hard. 2) The labor unit cost – here’s the rub, be back to this at the end. 3) The unit material cost – not that hard, just look it up. It’s the labor cost that can’t be “looked-up” in a book or a software program. It takes experience with the product or component to evaluate install logistics that impact duration of labor. Along this same line as drawings progress through their stages the inexperenced learn more and add more in this regard creating undetectable creep in the estimate.

I don’t know if “embracing true experienced Owners Rep/CM’s” is the only answer for this, I think this stuff is found everywhere…now away from performing the estimate there is prejudice estimating. I’ve found GC’s who play-along with the team with their estimating to keep their nose in the tent only to spring up at some point with a shock number offering the owner salvation with the white-horse to take control of a project. For this the Owners Rep/CM is the best path for architects.

Owner's Rep/CM always leaves a bad taste in my mouth.  It's not that I haven't experienced good ones, but the vast majority come from that construction side and traditional bid (handed a set of drawings to work with).  So they understand contractors, but know nothing of the design process.  So they beat down on design fee's, set unrealistic design deadlines, and if there's a conflict during construction, it's pretty normal they'll side with the contractor (whom they will empathize with more).  It's bad enough around here that if I know a Owner's CM will be involved, I add 2% to my fees to deal with the additional headache and require a copy of their contract so I can modify mine to recognize them properly and hold them accountable for their own decisions as the Owner's rep. 

Every project I've had that 'went wrong' has had a Owner Provided CM creating a confrontational relationship pitting the GC against the design team where the GC is treated as a dumb hammer swinger and the design team documents treated as a "step-by-step how to construct a building" set of instructions...  Seriously, I do expert litigation and would rather work with a room of attorneys than most Owner Provided CM's.... the lawyers are less argumentative and at least understand contracts and what those words mean. 

What is being referred to here is True CM as created by George Heery FAIA and Chuck Thompson FAIA in the mid 60’s as a concept of Construction Program Management to control time and cost in behalf of the owner, in an unbiased contractual relationship. True CM was high jacked by the GC’s in the late 70’s and they created modified versions of it that were/are biased like self performing work or calling it CM and charging a fee but operating as usual as a GC which is just Cost-Plus contracting under a different name.

Now there are True CM contracts by GC’s out there on major projects like management of mega school programs but their saw is still to pound the project and its participants into submission – it’s their style and definition of management. As an architect I started in CM in the early 70’s and did projects with Heery & Heery and Chuck Thompson (CM Inc.) critiqued two of Chuck’s books in draft and have been promoting architects as CM’s since then. Have a Thread here called Architects as Contractors (CM) or Developers trying to discuss it and promote. As you have found these GC’s are the wrong cats for this.

Sadly there are not enough architect based True CM’s to go around geographically so I now see big accounting houses and the like taking hold which are at least from the right culture, these are the Owner Reps Kenny was referring to.

Carrera great bit of info there on the history - tanks

Good history Carrera...

The modern CM is a numbers guy with a stick in most cases.  You are lucky if they had any real field experience.  Most I've dealt with had backgrounds in estimating and project management (scheduling).  They see their job as keeping the cost down and the schedule tight.  Several I know have a 'zero change order' promise; Which there is no way to pull that off without the GC and I holding a contingency fee (which I like doing btw since me holding 5% of the construction cost 'in case' is quite profitable). Another reason that I negotiate contracts hard and different if the owner is bring their own CM.

Oh, and I've run multimillion dollar rehabs as the Owner's Rep/CM.  Sort of funny to me since it was normal CA services I do as an architect.  It's just that the budget cut out anything 'architectural' so I managed the civil and structural engineers and roofing experts and performed onsite observations and coordination with the GC and all the normal CA services plus some bonuses like monthly newsletters to the HOA about the progress.  And when it comes down to it, probably my last 5 major jobs have been in more that capacity than 'real architecture' beyond some sketches and field directives.  We can do it as a profession...

Nothing beats a good design and good contractor selection , the adage that ORs-CMs are basically contractor side trained is not necessarily the rule, however having worked on design end as a GC and a sub-contractor and also as the owners representative...my only real job is to protect the owners interest and mange his or her expectations.....going after a designer is not job one unless its truly warranted......job one is listed above and to manage project aspects and relationships between the entire team, more over when allowed to choose the designer I have had nothing but exceptional success.....many owners have their pet designer and or pet contractor, I find that to be a red flag from the start unless I know the individual designers background and track record .

The reason for a red flag in many cases is the back door is usually open for the fair haired boy and that could hamstring the ORs job effectiveness. "out the window goes the management of the owners expectations"

Great comments by all!!

Thanks Kenny

Interesting Note :  67% of projects internationally end up in some sort of litigation....the number one reason they do?...love to hear what you guys think the # 1 reason is...

please elaborate...KT

If I were to guess, at the core it is a coordination issue.  At least that is where I see almost all defects here... it's one trade interacting with another where it breaks down.  Whether that's the architect failing to coordinate with the civil or structural or understand the local jurisdiction rules, or the sider failing to coordinate with the window/door installer.  It's at those intersections...  Communication failures by blindingly only looking at your work instead of how it fits into the bigger picture. 

The # 1 litigation is Delay claim # 2 is cost or change order dispute overruns , the real problem does indicate a lack of communication however its the point of the entire post subject.."Seasoned Project management".....If the owner or owners rep employs the wrong designer that does not have a history with the specific type of project and then also makes the blunder of employing a contractor not suited for the work and then add in poor project management...its cooked before it hits the oven. The success of a project or a development is what you do from the start....who manages the process , who designs it and who is going to build it.