Construction management has become a critical aspect of commercial property management, with general contractors playing a pivotal role in ensuring the success of building projects. This blog explores the evolution, approaches, and future of construction management within the commercial real estate sector.

What Is Construction Management?

Construction management involves the supervision of renovation and tenant build-out projects, with a focus on managing the general contractor to ensure project success. This role has expanded as property owners and tenants demand more comprehensive services from their property management firms. The evolution of construction management began during the development boom of the 1980s and has since become a staple in managing properties from an owner's perspective.

Different Approaches to Construction Management

In Washington, D.C., a survey of top commercial property management firms revealed that most offer construction management services, highlighting its growing importance. Some firms, like Grubb & Ellis, have only recently added these services, recognizing the need to offer more integrated solutions to clients. These services not only provide convenience but also significant cost savings, which are crucial in the competitive real estate market.

The CM and the General Contractor: A Critical Partnership

The relationship between construction managers (CMs) and general contractors (GCs) is fundamental. CMs are responsible for overseeing the entire construction process, ensuring that GCs deliver quality work that aligns with the property's requirements and owner's expectations. This partnership is vital for maintaining the project's integrity and ensuring timely and within-budget completion.

Job Responsibilities of Construction Managers

Construction managers have a broad range of responsibilities, from the initial planning stages to the final details of project completion. Their duties include qualifying general contractors, preparing budgets, negotiating leases, and managing day-to-day site operations. Effective CMs are skilled in communication and can navigate the complexities of construction projects, making them invaluable to any real estate management firm.

The Future of Construction Management

As the real estate market continues to evolve, the role of construction management is likely to grow in importance. The specialized expertise offered by CMs can significantly benefit property owners and tenants, ensuring projects are executed effectively and efficiently. With more firms recognizing the value of these services, construction management is poised to become an even more integral part of property management strategies.

Conclusion

The field of construction management is more than just an added service; it is a crucial element that enhances the value and functionality of commercial properties. As the demands of tenants and property owners evolve, the role of general contractors and construction managers will continue to be pivotal in meeting these needs. The future of property management will undoubtedly rely heavily on the expertise and effectiveness of construction management.

Source: Hoffman, Terri L. "Construction management: added value or added cost?" Journal of Property Management, vol. 63, no. 5, Sept.-Oct. 1998, pp. 64+