What is the role of the construction manager under a CM contract?

What is the role of the construction manager under a CM contract?

The basic premise of a Construction Management (CM) Contract is that the Owner, referred to as the ‘Principal’ under the contract, enters into a contract with a Construction Manager. The Construction Manager is responsible for arranging and supervising the performance of work by sub-contractors.

What is a CM contract?

A construction management contract is a legally binding agreement between the project owner (referred to as principal) and the commercial building contractors where the manager is charged with the responsibility of engaging with the sub-contractors and supervising the construction while providing the owner with a …

What are the three types of authority exercised in a construction contract?

What are the three types of authority exercised in a construction contract?…

• Bidding & contractual documents & forms.
• Conditions of the contract.
• Technical Specifications.

In what major section of the contract is the time duration of the project normally specified?

In a bid package, the time duration of the project is normally specified in the supplementary conditions section.

What are the 4 types of contracts?

What are the Different Types of Contract?

• Contract Types Overview.
• Express and Implied Contracts.
• Unilateral and Bilateral Contracts.
• Unconscionable Contracts.
• Adhesion Contracts.
• Aleatory Contracts.
• Option Contracts.
• Fixed Price Contracts.

What are the 3 types of contracts?

So let’s look at those three contract types in a bit more detail.

• Fixed price contracts. With a fixed price contract the buyer (that’s you) doesn’t take on much risk.
• Cost-reimbursable contracts. With a cost-reimbursable contract you pay the vendor for the actual cost of the work.
• Time and materials contracts.

What are the two main types of contracts?

Two different kinds of groups of contracts are fixed price contracts and cost-reimbursement contracts. Different types of contracts, which are contained within each of these two types of groups, may be used separately or in combination with one another.

What are the stages of contract management?

Here are the seven essential stages of contract management.

• Planning stage. Before you can implement a process, it’s important to develop a system that will best suit your company’s needs and resources.
• Implementation stage.
• Pre-contract stage.
• Handover stage.
• Contract stage.
• Pre-renewal stage.
• Post-contract stage.

What are principles of procurement?

Public procurement principles are the foundation of public procurement and should be addressed in the public procurement rules. Transparency, integrity, economy, openness, fairness, competition and accountability are some of the fundamental principles of public procurement. They are briefly discussed below.

What are the five pillars of procurement?

The Five Pillars are:

• Value for Money. In short this means that it is not necessarily the tender with the lowest price that is going to win the bid.
• Open and Effective Competition.
• Ethics and Fair Dealing.
• Accountability and Reporting.
• Equity.

Why is procurement process important?

Procurement is seen as helping to streamline processes, reduce raw material prices and costs, and identifying better sources of supply. Indeed, in many organisations the importance of procurement is recognised by having their head of procurement placed at an Executive Board level.

What are the principles of procurement and supply?

7. Principles of Procurement

• Accountability.
• Competitive Supply.
• Consistency.
• Effectiveness.
• Value for Money.
• Fair-dealing.
• Integration.
• Integrity.

What is the procurement cycle?

The procurement cycle describes the step-by-step process used for identifying the requirement for the company to retrieve the product or contract. Both public and corporate funds must be managed responsibly when going through this cycle.

What are the basic principles of public procurement?

In subsequent posts, the following seven fundamental public procurement principles will be addressed:

• Transparency.
• Integrity.
• Economy.
• Openness.
• Fairness.
• Competition.
• Accountability.

What are legal issues in procurement?

Legal Issues for Purchasing Management

• Authority Limits.
• Awareness of Contract Law.
• Quality and Safety.
• Monitoring Supply Contracts.
• Letters of Intent/Memoranda of Understanding.
• Tenders.

What does a procurement lawyer do?

Structuring tender processes and their implementation (including regulatory compliance). Developing bid strategies and commercial offerings. Advising on legal challenges (including urgent response during the standstill period). State Aid law and funding arrangements.

What are the legal aspects of purchasing?

6 Legal Status of Purchasing Manager • From a legal point of view, the following factors are associated with the appointment: 1. The purchasing manager must be granted the authority to make purchase contracts. 2. The purchasing manager accepts this contracting authority.

Why is it important for purchasing managers to understand legal issues?

They make various contracts for which they are required to possess some legal knowledge to successfully execute those contracts. So, the managers must possess knowledge about legal issues as they are a part in decision making for procurement and purchasing.

What is the relationship among contract law the UCC and commercial law?

Contract law is governed by the common law and the Uniform Commercial Code “UCC.” Common law governs contractual transactions with real estate, services, insurance, intangible assets and employment. UCC governs contractual transaction with goods and tangible objects (such as a purchase of a car).

What do you mean by public purchasing?

Public procurement refers to the purchase by governments and state-owned enterprises of goods, services and works.

What is meant by purchasing authority?

Purchasing authority is the power given to the purchasing manager to make purchases of services, products in the form of contracts. Examples: Express authority, Implied authority, and Emergency authority.

What tasks are allocated to the purchasing function?

Purchasing function means procurement of material, machinery, labor, tools and supplies required during the process of manufacturing. Purchasing function does not include the normal buying of material but verification of goods and services is also an important part and so as the feedback of the quality.

What are the seven basic steps in the procurement process?

The 7 Key Steps of a Procurement Process

• Step 1 – Identify Goods or Services Needed.
• Step 2 – Consider a List of Suppliers.
• Step 3 – Negotiate Contract Terms with Selected Supplier.
• Step 4 – Finalise the Purchase Order.
• Step 5 – Receive Invoice and Process Payment.
• Step 6 – Delivery and Audit of the Order.
• Step 7 – Maintain Accurate Record of Invoices.

What are the five major categories of government procurement?

A Look At 5 Types Of Government Contracts

• The Fixed-Price Contract. The fixed-price contract is a bit like those fancy prix-fixe dinners at upscale eateries.
• Cost-Reimbursement Contracts.
• Time & Materials Contracts.
• Incentive Contracts.
• Indefinite Delivery & Quantity Contracts.

What are the main procurement activities?

A typical procurement process includes:

• Identifying the needs of goods and services.
• Finding suppliers.
• Requesting proposals/quotations (RFP/RFQ)
• Negotiating with suppliers.
• Agreeing terms with suppliers.
• Arranging and receiving products/services.
• Performing quality assurance.
• Analysing results and margins.

What are the 6 R’s of purchasing?

Right Quantity 3. Right Time 4. Right Source 5. Right Price and 6.

What are the five major steps in the purchasing process?

Steps involved in a Procurement Process

• Step 0: Needs Recognition.
• Step 1: Purchase Requisition.
• Step 2: Requisition review.
• Step 3: Solicitation process.
• Step 4: Evaluation and contract.
• Step 5: Order management.
• Step 6: Invoice approvals and disputes.
• Step 7: Record Keeping.

What is Procurement Strategy?

What is a procurement strategy? The term procurement strategy refers to a long-term plan to cost-effectively acquire the necessary supplies from a list of efficient vendors who will deliver quality goods on time, abiding by the purchasing terms.

What are the best procurement strategies?

Exclusive: CIPS top 10 procurement strategies

1. Develop commercial skills.
2. Get to grips with financial data.
3. Understand big data.
4. Supplier, stakeholder and management relationships.
5. Embrace ethics and sustainability.
6. Managing risk.
7. Search out the future of the profession and business.
8. Develop more soft skills.

What are the strategic roles of procurement?

Specifically, strategic procurement can develop optimal material specifications, monitor and forecast changes in external source markets, share information with suppliers, identify critical materials and substitutes, identify key suppliers that can support product design, and develop material sourcing and contingency …