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The Construction and Program Management Profession and CMAA

The Construction and Program Management Profession and CMAA February 24, 2005 ACCE Mid-Year Meeting San Antonio, Texas Bruce D’Agostino, CAE Joe Seibold, P.E. Sid Hymes, CCM, CPC

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The Construction and Program Management Profession and CMAA

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  1. The Construction and Program Management Profession and CMAA February 24, 2005 ACCE Mid-Year Meeting San Antonio, Texas Bruce D’Agostino, CAE Joe Seibold, P.E. Sid Hymes, CCM, CPC Executive Director, CMAA PinnacleOne, President CMAA Jacobs, CMAA ACCE Liaison

  2. Presentation Agenda • Construction Management is . . . • About CMAA • Program Management is … • How can CMAA help ACCE?

  3. Today’s reality... • Construction is risky, complex and challenging. • Delays, changes, disputes, accidents cost more than ever. • Owners don’t have the expertise or the staff to stay on top • Success demands collaboration... andleadership!

  4. Window, Glass & glazing Window wall Structural steel Window covering Concrete formwork Signage Security systems Fire protection Landscaping and Planning Painting Striping Stucco Hardware Glass & Glazing Toilet compartment & accessories Pools and fountains Termite control Skylights Sealants & caulking Demolition Insulation Drywall Lockers Site sprinklers Grading & excavation Doors and frames Soil treatment Fire stopping Electrical Mechanical Tile Rough framing Elevators Fencing Casework Metal fabrications Building insulation Ductwork Metal wall & roofing panels Mold Control RO water Erosion control Paving Acoustical ceilings Wall covering Architectural woodwork Flooring Moisture protection Compressors and fan units Flagpoles Food service Roof and site drainage Block and brick Flashing & sheet metal Ornamental Iron Clearing & stripping Network wiring Millwork Roof hatches Vacuum systems Carpeting Plumbing Roofing Code consultant Cleaning Food service consultant Acoustical consultant Sanitary engineer Control wiring Building specialties Structural engineer Design architect Telecommunications consultant Architect of record CM Concrete reinforcement Audio Visual consultant Civil engineer Counter tops Construction Construction Network cabling consultant Electrical engineer Lighting consultant Design Concrete Supply Graphics and signage consultant Construction Mechanical engineers Testing and Inspection Design Hardware consultant CM Life Safety consultant CM CM

  5. EPA Department Fire Marshall Public Works Street and Highways ADA EPA Historical Preservation City Planning Agency Streets & Chamber of Commerce Highways OSHA Beautification Commission Unions

  6. What Happened to the “good old days”? The construction industry responded to the demand for . . . lower/certain project and program costs, shorter schedules and greater innovation and introduced a variety of alternatives… such as Design-Build and CM At-Risk

  7. Industry Paradigm Shift • The role of long-standing relationships which formed the basis of “agreements” has been replaced by one-time, stand-alone contracts Risk and reward are evaluated, and expected, on each project

  8. Proliferation of Delivery Choices • 46 states allow some form of construction procurement other than traditional Design-Bid-Build. the expertise demanded of all the projects participants is greater than ever

  9. What a relief ! We minimized the interfaces!

  10. Where does the CM fit in? • Augments or represents the owner in today’s complex contracting environment • Provides the expertise necessary to achieve project goals • Provides critical project/program leadership

  11. Construction Management A professional practice that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality.

  12. Professional CM pays off in: • Speed of project completion • Quality of finished job • Quality of the construction process • Cost savings • Project safety • Claims and dispute avoidance

  13. CM and delivery systems • Each delivery system requires professional management. • Professional Construction Management is delivery system neutral and fills a vital role in all widely used delivery systems. • A CM can help assess and select the best delivery method for every project.

  14. Key owner needs • Objective participation focused on the Owner’s goals of project success. • Involvement in pre-construction and planning. • Continued commitment all the way through project delivery and commissioning. • Responsive leadership and collaboration throughout.

  15. (From CMAA/FMI Owners Study) “The number one problem in construction is effective project LEADERSHIP. In the future there will be less owner construction expertise, creating a leadership vacuum that the CM profession must step forward to fill. This requires that the CM accept responsibility for the project, and develop a collaborative relationship with both the A/E and the construction contractor in order to effectively lead the project team to success.”

  16. Safety Time Cost Quality The CM Always Acts inthe Owner’s Best Interests CONSTRUCTION MANAGER

  17. Enlightened Owners Want . . . CM placed on the project team first to: • Manage A/E schedule for design submissions • Review A/E design submissions for constructability and adherence to the budget • Manage the overall project schedule • Manage the procurement of the construction contractor • Provide quality assurance • Manage the commissioning program • Manage and coordinate third parties

  18. On the owner’s side... • In pre-design: - program management - site analysis and selection - choice of delivery method - preliminary budget and schedule - general performance requirements - forming a collaborative team

  19. On the owner’s side... • During design phase: - schedule & cost management - support a responsive, esthetic design - life cycle cost analysis - constructability review - detailed budget and schedule reporting - technology implementation

  20. On the owner’s side... • During the bid process: - procurement management - pre-bid conference - clear and complete bid documents - evaluate and compare bids - recommend choice

  21. On the owner’s side... • During construction: - contract administration - timely and full reports - financial management and control - manage change order process - assure a safe workplace - minimize delays and disputes - manage close-out and commissioning

  22. The Role of the CM • A new “leg to the stool” • Industry recognized professional service • Critical to the delivery of successful projects and programs

  23. CONSTRUCTION MANAGEMENT ASSOCIATION OF AMERICA North America's only organization dedicated exclusively to the interests of professional program and construction management.

  24. About CMAA • 2,900+ member Industry Association comprised of corporations, individual practitioners, owner practitioners and academia. • 25 regional chapters serving local needs of members and their clients. • Incorporated in 1982.

  25. CMAA’s Mission and Vision Mission: To promote professionalism and excellence in the management of the construction process. Vision: To be the recognized authority in the management of the construction process.

  26. The Goals of CMAA • Promote international recognition and understanding of professional CM services for capital project execution. • Provide CM Industry advocacy at all levels of government. • Promote professional development of CMAA membership to assist members in marketing themselves and their companies. • Promote research & development of CM practices. • To represent all segments in the CM industry.

  27. CMAA Code of Ethics Client Service Representation of Qualifications Standards of Practice Fair Competition Conflicts of Interest Fair Compensation Release of Information Public Welfare Professional Development Integrity

  28. Professional Development • Conferences & Trade Shows • Online Education: Web-based training • Distance Education: CMs TalkLive! • Certification Test Prep Course (New) • Standards of Practice Course • Project Leadership Training Program (New)

  29. Spring Conference & Leadership ForumDenver, ColoradoMay 23 – 24, 2005Creating collaborative teams:A solution for the industry -- A mission for the profession • “Creating Collaborative Teams in Iraq” A keynote presentation by William E. Van Wagenen, Jr. CCM • New Forum format features 12 sessions that generate an exchange of new concepts • Six bonus education sessions • A “town meeting” on "The State of CM/PM Training: Is Our Profession at Risk?"

  30. CMAA National Conference& Trade ShowHuntington Beach, CaliforniaSeptember 11– 13, 2005 • Professional Development • Networking Opportunities • Industry Recognition Luncheon • Project Achievement Awards • Association Business

  31. CM Standards of Practice Course Day 1:Professional Practice, Contract Admin., Project Management Day 2:Value Engineering, Cost Management, Safety Management Day 3: Time Management, Quality Management

  32. Contract Documents & Publications • CMAA Standards of Practice • Standard Forms of Agreement for Agency CM • Standard Forms of Agreement for CMAR • Time Management, Quality Management, Cost Management, Program Management • Contract Administration Procedures • CM Leadership Development Guidelines

  33. CMAA Foundation • CMAA’s Foundation has awarded more than $40,000 in scholarship support to students enrolled in college level programs in Construction Management. • The Foundation has recently funded two research projects: • Comparative Analysis of Total Project Costs with vs. without a CM, which will be conducted by a joint research team from the University of Southern California and the California State University at Long Beach. • Schedule Acceleration Techniques Using a CM, awarded to a team from Virginia Tech.

  34. Construction Manager Certification Institute(CMCI) The Construction Manager Certification Institute is an independent administrative body of CMAA responsible for certification of Professional Program & Construction Managers.

  35. CM Certification Goals • Improve Professional Practice through the establishment of professional development goals • Identify the CM body of knowledge and skills necessary for the successful practice of CM/PM • Recognize individuals who demonstrate knowledge and experience essential to the practice of CM & PM

  36. Total CCMs by Year Numbers as of 12/31/04

  37. Institute Statistics • CMCI has certified 551 CMs (as of 2/21/05) • There are currently 292 candidates in the process of becoming certified (as of 2/21/05)

  38. A Perspective of Program Management Relative to Industry and Academia

  39. Overview and Outline • Distinction between Program Management and Construction Management • Organizational Attributes • Knowledge and Skill Sets Required • Going Forward

  40. Distinction between Program Management and Construction Management Construction Management traditionally involves a single project • Project delivery method and financing may have already been established by Owner • CM individuals involved during the Design Phase (generally 30% complete and later) • Yields either a CM-at Risk or Agency CM • Skills required include constructability, pricing, sequencing, procurement, etc.

  41. Distinction between Program Management and Construction Management • Program Management involves multiple projects (within a larger project) involving all phases of a project’s life cycle • Planning/Conceptual • Design • Construction Contracting • Construction • Completion and Testing • PM often serves as an extension of Owner’s staff

  42. Distinction between Program Management and Construction Management (continued) • Significant influence over program early in life cycle regarding financing, delivery methods, standards, criteria, project priorities, control methods • Risk Management now a major discipline that Owners specify

  43. Organizational Models • Industry Survey shows 4 basic Organizational Models utilizing Program Management • Agency/Owner PM Organization (internally developed and staffed) • Agency/Owner Replacement (consultant hired to perform all/most functions) • “PM Lite” (consultant hired to “monitor and coordinate vis-à-vis “control and manage”) • Integrated PM Organization (combination of agency/owner and consultant personnel…“best and brightest” approach)

  44. Knowledge and Skill Sets Required • In addition to traditional CM skills and knowledge, PM requires understanding of: • Project Financing • Strategic Project Delivery (Public Private Partnerships, etc.) • Agency and Regulatory Coordination • External Communications (Communities, Abutters, Media, Governmental agencies, Program participants, industry groups, etc.)

  45. Knowledge and Skill Sets Required • Companies employee people with such knowledge and skills through selective hiring • Emergence of PM has created a tremendous demand for such people • Little formalized training exists “in the classroom”

  46. How Academia and the CM Profession Can Best Support Each Other An Invitation to Improve the Dialogue Between CMAA and ACCE

  47. CMAA & ACCE • ACCE has taken the lead in preparing college students to enter into the Construction Management profession • CMAA has taken the lead in developing the definitive Construction Management Standards of Practice and defining the CM process

  48. It Only Makes Sense That AACE and CMAA Should Continue to Work Together to Improve the Construction Management Profession

  49. What the Profession Needs Qualified Individuals With: • Communication Skills • Basic Areas of Knowledge (Alphabetically) • Contractual Basics • Estimating • Personnel Management • Planning & Scheduling • Safety • Time Management

  50. What ACCE Can Provide • Graduates With Oral and Verbal Communication Skills • Graduates With Foundational Skills in the Basic Technical Areas (Estimating, etc.) • Accreditation Criteria to Reflect the Industry’s Need for Construction Management Professionals

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