Archives for July 2015

Written by James D. Hollyday, Partner, Pepper Hamilton, LLC
Republished with permission. This article was originally published in the May 2015 issue of AGC Law in Brief.

“Construction management at risk” or “Construction management at risk services” or “Construction management at risk delivery method,” a construction method wherein a construction management at risk firm provides a range of preconstruction services and construction management services which may include cost estimation and consultation regarding the design of the building project, the preparation and coordination of bid packages, scheduling, cost control, and value engineering, acting as the general contractor during the construction, detailing the trade contractor scope of work, holding the trade contracts and other subcontracts, prequalifying and evaluating trade contractors and subcontractors, and providing management and construction services, all at a guaranteed maximum price, which shall represent the maximum amount to be paid by the public agency for the building project, including the cost of the work, the general conditions and the fee payable to the construction management at risk firm.

The article Complexity is Often the Culprit in Cost Overruns and Delays was published last year in the MDCAdvisor® (March, 2014) and garnered much feedback. In today’s article we will revisit the Complexity and Systems Thinking topics and foster additional discussion of how andwhy project failures are driven by complexity. Complexity often arises to frustrate even the best efforts of Architects, Engineers and Contractors working to complete projects on time and budget.