Cstm 451 PROJECT DELIVERY SYSTEMS

CstM 451 – PROJECT DELIVERY SYSTEMS

Notes: “PROGRAM MANAGEMENT”

PROGRAM MANAGEMENT is defined in your text as a “management method” as opposed to a “delivery system”. Program Management (for an owner) has the distinguishing characteristic of involving the management of all phases of the design and construction process for multiple structures, or multiple buildings, at multiple building sites, over an extended period of time.

Program Management is often used by large corporations that have multiple facilities designed and built for them on land they own. These “Owner corporations” often have insufficient internal expertise or resources to manage the various stages of design and construction. Program Management involves either the hiring of an “in house” Program Manager, or contracting-out Program Management services to an “outside” individual or firm to supplement the normal in-house personnel profile of the corporation.

Program Managers are typically used in situations where:

1. The Owner lacks resources to properly provide broad oversight and management of the work.

2. A Program Manager is desired to provide leadership in the overall construction program development process.

3. The Owner believes Program Management is the most effective way to contain program cost; or

4. Program Management is the Owner’s traditional Management Method.

The Program Manager is typically involved in managing all 5 “phases” of program development for the Owner:

Real Estate, Financing, Design, Construction, Occupancy

Someone needs to take overall responsibility for each phase of the project development process. This responsibility can either be delegated to an in-house resource, or outsourced. One difference between the two approaches is the extent of authority given by the Owner to the Program Manager.

The Program Manager, in-house version, contemplates an employer/employee relationship between the Owner and the Program Manager, and an administrative relationship between the Owner and the Designer(s) or Constructor(s) that does not include a delegation of authority to the Program Manager to “bind the Owner”.

Outsourcing to a Program Manager for project leadership contemplates an agency relationship between the Owner and the Program Manager through which the Program Manager is delegated authority to “bind the Owner”.

(Be sure to read and understand the Case Study on page 27 of your text)