Paper Contracting - The How-To of Construction Management Contracting
Paper Contracting - The How-To of Construction Management Contracting

Read Now Paper Contracting - The How-To of Construction Management Contracting PDF

Looking for a better way to make a living in construction?Construction Management (CM) Contracting is replacing traditional construction contracting on many projects – from the largest public and private jobs to home improvement work. Traditional construction practice (owner, prime contractor and subcontractor) has disadvantages that every traditional general contractor knows all too well:-Risk of loss-Disputes with subs and suppliers-Negative cash flow-Slow pay-Warranty claims-Code compliance-Oppressive regulation-Failed inspectionsModern construction managers leave these problems to others – avoiding the worst headaches while delivering good value to their clients.What is a construction manager?A construction manager earns a fee as a consultant, helping the owner:-Get the right plans and specs-Keep the owner informed of progress-Prepare bid packages and contracts-Evaluate payment requests-Evaluate the bids-Assist with change orders-Observe day-to-day construction-Protect the owner from claimsA construction manager earns a consulting fee – period. He neither buys nor installs materials, contracts with no trades and pays no bills. The owner signs the contract, pays the bills and holds installing contractors responsible for their work.Most of a construction manager’s task will come as second nature to experienced traditional contractors. What won’t come easy is the construction management contract itself. CM contracts are very different from traditional prime contracts – and have to be drawn very carefully to avoid misunderstandings with property owners and problems with state authorities. That’s why this book offers access to downloadable CM contracts that comply with unique laws in all 50 states and the District of Columbia.Construction consultants are doing that right now. They don’t have the headaches common on nearly every project – risk of loss, code compliance, warranty claims, liens, and – always – the need for more capital.Consulting contractors work with the designer, get owner approval of the plans, guarantee a maximum price, select trade contractors, make sure work is done right -- and then collect a little extra for finishing under budget. It can be a good business. But it’s not a general contracting business. It’s a consulting contractor business: no employees, no inventory, no payables, no warranty, no investment, no liens, no risk.Is anyone really doing this?It’s the way most federal, state and municipal jobs are done today, including many of the largest projects, e.g. the Corps of Engineers. Many commercial and residential jobs are run by consulting contractors – sometimes called paper contractors. Some of the most experienced, most successful, most respected construction professionals in the industry fit the definition of paper contractor. And for good reason.A consulting contractor is the owner’s representative – answers only to the owner. The consultant’s job is to protect the owner against high costs, delay, shoddy work and risk of loss. No one else on the site shares that agenda.Finding work as a construction consultantIt’s not hard. In fact, why not suggest consulting every time you bid a job. The pitch goes something like this:"I can save you some money on this job. I’ll act as your consultant at a price my competition can’t touch. There’s zero profit for me in this job. Just pay me for my time. I’ll give your job the same attention I give to every project I take on, but with no markup. You can’t beat that deal. Say the word and I’ll write up a contract we both can live with."If working as a consulting contractor appeals to you – and if you aren’t exactly sure how to do it – consider Paper Contracting. The co-author, William D. Mitchell, has completed over 100 projects as a construction consultant – everything from home remodels under $100 thousand to government projects worth over $100 million.

  • Released:
  • Author: William Mitchell,Gary Moselle
  • Rating: 5
  • Publisher: Ebook DIgital Agency
  • Total Page: 251 pages
  • File Size: 2551 Kb

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