Building and Construction – Management Contracting

rose roofing: Management Contracting (MC or management contract) is a method in which the employer appoints a company or a person to manage the implementation of the project. Therefore, determining the methods of project implementation and determining the organizational chart and employing forces It is the responsibility of the contractor.

Contract management by a person or company
Receipts of contractors

In this method, the contractor receives a percentage of the costs incurred (including the cost of preparing contract items and the cost of implementation) for project management.

Receipt of the contract management contractor

Before spending, the parties must agree in a way that benefits both parties because the employer does not pay any overhead (overhead or extra interest) to the contractor. Rather, it only pays for the necessary items in the contract, project management, and manpower and machinery. Therefore, the cost of the contract is saved.

On the other hand, the contractor does not pay a fee for the implementation and does not assume the obligations and receives a profit as a percentage of the total costs just because of the expertise in the management of the contract. The speed and quality of project construction in this method is higher than other methods.

What is contract management?
Advantages of project or contract management method

If Management Contracting (abbreviated MC) is used in the middle of the design phase or earlier, by integrating into the design team and coordinating with the design team, it will be able to apply the experience and skills related to construction in the designs to It leads to the reduction of time, cost, better implementation of plans and increasing the possibility of value engineering analysis in the design and construction stages.

Advantages of project or contract management method

Considering that the monitoring of construction contractors’ operations is the responsibility of MC, therefore there is no need for the monitoring services of consulting engineers.
The presence of MC leads to coordination between construction contractors and solving their problems in terms of non-interference.
Providing support services to construction contractors leads to the acceleration of executive operations as well as covering their weak points.
Because MC does not directly participate in the design and implementation, it can focus exclusively on management, planning and cost control regardless of implementation issues.
MC, as a member of the employer’s team, does not have any profit-seeking intentions of the contractor and his only goal is to satisfy and protect the interests of the employer.
In this method, intense competition is created between construction contractors, because the work is divided into smaller packages, and contractors are interested in more work packages by doing it correctly and on time.
Building and Construction – Management Contracting
Supervision of the contractor’s performance by the project manager
Necessity of contract management

Construction, like any operation, has its own rules. Before starting the construction, getting the relevant permits can be easily entrusted to the contractor, but otherwise, if the property owner is not familiar with the construction steps, he will be involved in a time-consuming process, and to move correctly in this process, he needs to gain experience and information. will have a lot While the contractor has done this process many times due to his job and simply according to his previous experiences, he can obtain the relevant permits and start the project at the appointed time.

As the construction phase begins, securing experienced personnel is not an easy task. Each contractor has his own forces and is familiar with the rules of working with each of them. Also, the presence of the contractor in providing many materials can be useful because they know the main manufacturers and suppliers and the expenses that should be spent on intermediaries are eliminated.

Necessity of contract management
Types of contract management contracts

The construction contract management contract has different types, such as:

Total payment contracts
Permanent contracts
Evaluation contracts
Reimbursement Agreements
Management contracts
Project management contracts
Design and construction contracts
Engineering contracts, equipment supply, implementation
Construction and development contracts
Construction contract management contract

General payment contracts:

In this contract, the contractor completes all the work at a certain cost, which includes two types of fixed and floating prices.

Permanent contracts:

They are used for repetitive issues such as repairs, where the employer’s goal of this type of contract is to save tender costs and speed up executive operations.

Measurement contracts:

The price of this type of contract is estimated at the beginning and the final price is known at the end of the work.

Reimbursement Agreements:

In this contract, the employer pays the initial costs of the contractor, including the costs of workers, workshop and consumables, in addition to the amount agreed with the contractor, which is concluded in two forms: a fixed invoice or a target price.

Management contracts:

In this contract, the employer hires a company to manage and coordinate the design and construction of the building to work alongside the contractor. This type of contract is suitable for large and complex projects that require special expertise and experience of the contractor.

Project management contract:

In this type of contract, the contractor is identified as the project manager, which includes things such as specifying the site, workshop equipment, investment, design, implementation, commercial affairs and project approvals, and with the progress of the project, a certain amount is paid to the contractor and the need to a professional contractor.

Design and construction contracts:

In these contracts, the contractor alone takes responsibility for the design and construction of the project, and the employer expresses his needs in detail.

Engineering contract, equipment supply, implementation:

Design work and