In this traditional delivery method the owner has a design made for what they would like done. This design is then presented to different general contractors who review the design and place a bid on the work. Typically, the lowest bidder is selected and he works with the designer and the owner to ensure the work is done to specifications.
This delivery method is similar to the traditional design-bid-build method, except that the owner works with a construction manager who also acts as the general contractor. As construction manager, he reviews designs and points out any beneficial changes prior to hiring sub-contractors. Once the hiring of sub-contractors is done, the construction manager becomes the general manager, and he holds the risk of ensuring the work is done at the agreed upon price, to standard and on schedule.
The owner manages several different contractors in this method of construction project delivery. The contractors will be in different fields, depending on the work performed: mechanical, electrical, structural, or general construction. The owner manages the budget as well as the contractors' schedules throughout the project.
Contractors and designers come together to offer this project delivery method to owners. In this scenario, the designer and builder work together to create a design and present the complete construction cost to the owner. Once the owner approves the project, the designer and construction manager work together to ensure it is completed on schedule, to specifications and within budget.
A construction management agency is hired by the owner to assist with all aspects of the project prior to its initiation. The owner pays a fee for the agency's expertise in all areas, including design, budgeting, engineering and bidding. During the planning phase the management agency helps the owner avoid mistakes and oversights that might be costly once construction begins. Since the agency has no stake in the project, it can look at it objectively and provide valuable insight and feedback.