Management Procurement Options

Agency Construction Management

Project Delivery Systems for Construction defines Agency Construction Management as:

a management system based on an owner's agreement with a qualified construction management firm to provide coordination, administration, and management within a defined scope of services. The construction manager works throughout the various phases of a project and cooperates with the project team in furthering the interests of the owner. A key feature of this management system is that the contracting entity operates as an agent to the owner, operating under traditional legal obligations pursuant to an agency relationship. While agency CM is not limited to a certain sized project, agency CM is frequently used effectively on large, complex projects where the owner desires to supplement its in–house staff and expertise.

ConsensusDocs offers AGC–endorsed standard Agency Construction Management documents (810, 830, 831, 840, 850).

Best Value Selection

Project Delivery Systems for Construction defines Best Value Selection as:

a procurement in which qualifications, design (where applicable) and price or cost are weighted, and the qualifications and total construction cost of each competitor, including cost of the work, are applied against the relative weights of the other competitors, to identify the designer or constructor whose proposal represents the greatest value to the owner. Although many states use the term “best value” with respect to public project procurement, there is substantial variation in the application of this term.

Qualifications Based Selection

Project Delivery Systems for Construction defines Qualifications Based Selection as:

a procurement process based upon evaluation of the comparative qualifications of the competing companies. This method of procurement is more commonly used to procure designer services, but it could be used in any procurement process where the qualifications of the selected construction manager or constructor are paramount. This procurement process can proceed in one of two ways. Procurement may be based exclusively on the qualifications of the team, with no consideration of the fees charged. Often, however, fees and/or general conditions costs are included as a factor in selection, but total construction cost is not.