Construction Management and the Specialty Trade (Prime) Contractors

Abstract

Nonconventional construction techniques such as construction management and design-build/fast track have developed as methods designed to reduce the total time between the date of decision to build and the date of project completion. Any such time savings predominantly benefits the owner. The sooner the project is completed, the sooner it can serve its intended purpose-a factory can produce goods; an office building can produce rental income; a refinery can produce gasoline products; or a power plant can generate electricity. A time savings can also result in reduced construction and financing costs including lower labor rates, material and fuel costs, and interest expense. Because it is the owner who elects to utilize a nonconventional construction technique, it is the owner who must accept not only the benefits but also the costs of such methods. The purpose of this article is to evaluate the use of construction management and design-build/fast track from the perspective of specialty trade contractors, the group performing the majority of the actual physical construction work. The article will first review the role of specialty contractors under the traditional fixed design and prime contractor-subcontractor system. It will then discuss the expectations of the specialty contractors when nonconventional techniques are to be utilized. Finally, it will evaluate how nonconventional methods have actually worked for specialty trade contractors.