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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

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

presentation agenda
Presentation Agenda
  • Construction Management is . . .
  • About CMAA
  • Program Management is …
  • How can CMAA help ACCE?
today s reality
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!
slide4

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

slide5

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

what happened to the good old days
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

industry paradigm shift
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

proliferation of delivery choices
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

slide9

What a relief !

We minimized the interfaces!

where does the cm fit in
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
construction management
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.

professional cm pays off in
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
cm and delivery systems
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.
key owner needs
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.
from cmaa fmi owners study
(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.”

enlightened owners want
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
on the owner s side
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

on the owner s side19
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

on the owner s side20
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

on the owner s side21
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

the role of the cm
The Role of the CM
  • A new “leg to the stool”
  • Industry recognized professional service
  • Critical to the delivery of successful projects and programs
construction management association of america
CONSTRUCTION MANAGEMENT ASSOCIATION OF AMERICA

North America's only organization dedicated exclusively to the interests of professional program and construction management.

about cmaa
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.
cmaa s mission and vision
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.

the goals of cmaa
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.
cmaa code of ethics
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

professional development
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)
slide29

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?"
cmaa national conference trade show huntington beach california september 11 13 2005
CMAA National Conference& Trade ShowHuntington Beach, CaliforniaSeptember 11– 13, 2005
  • Professional Development
  • Networking Opportunities
  • Industry Recognition Luncheon
  • Project Achievement Awards
  • Association Business
cm standards of practice course
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

contract documents publications
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
cmaa foundation
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.
construction manager certification institute cmci
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.

cm certification goals
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
total ccms by year
Total CCMs by Year

Numbers as of 12/31/04

institute statistics
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)
overview and outline
Overview and Outline
  • Distinction between Program Management and Construction Management
  • Organizational Attributes
  • Knowledge and Skill Sets Required
  • Going Forward
distinction between program management and construction management
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.
distinction between program management and construction management41
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
distinction between program management and construction management continued
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
organizational models
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)
knowledge and skill sets required
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.)
knowledge and skill sets required45
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”
how academia and the cm profession can best support each other

How Academia and the CM Profession Can Best Support Each Other

An Invitation to Improve the Dialogue Between CMAA and ACCE

cmaa acce
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
slide48
It Only Makes Sense That AACE and CMAA Should Continue to Work Together to Improve the Construction Management Profession
what the profession needs
What the Profession Needs

Qualified Individuals With:

  • Communication Skills
  • Basic Areas of Knowledge (Alphabetically)
    • Contractual Basics
    • Estimating
    • Personnel Management
    • Planning & Scheduling
    • Safety
    • Time Management
what acce can provide
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
what cmaa and acce need to do
What CMAA and ACCE Need to Do:
  • Encourage Communication Between the Respective Memberships
  • CMAA Will Identify Members Who Can Speak With Students About Opportunities in the CM Profession
  • ACCE Will Reach Out To CMAA Members to Encourage Their Participation on Advisory Committees
the result
The Result:

Working Together, ACCE and CMAA Can Provide a Career Path For Graduates of ACCE’s Accredited Programs

thank you

Thank you!

www.cmaanet.org