Page 99 - BASIC GUIDELINE FOR QS

Professional Practice: Guideline for Quantity Surveyor Chapter 3

Management Contracting vs. Construction Management

Management procurement generally works on the basis of two different methods:

Management Contracts
With management contracts, the employer appoints a professional team and a

management contractor who is responsible for managing the works. The management
contractor does not directly undertake any of the construction; this is spilt into packages
and carried out by works contractors.

The management contractor appoints the works contractors, and they are directly
and contractually accountable to the management contractor. A pre-construction phase
will allow a programme of works packages to be developed from the drawings,

specification and cost plan, which are then let out by competitive tender.

Although contractually responsible for the works contractors, the management
contractor is not liable for any default by a works contractor, provided they have

complied fully with the terms of the management contract. A variation on this method is
'design and manage' where the management contractor is responsible for the design
team as well as the works contractors.

Construction Management

With construction management contracts, the employer will appoint a professional team
with either an in-house manager, or enters an agreement with a construction manager to

oversee the work. The construction manager does not directly undertake any of the
construction work, this is split into packages and carried out by trade contractors.

The employer appoints the trade contractors and is directly responsible for them.
The construction manager manages the works, but the employer has a major role in

directing the project.

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