Construction Manager’s Considerations 249

Every change order should state whether or not additional time is warranted.
Obviously, this task is far easier if an up-to-date CPM schedule is maintained
throughout the Project.

Delay Damages Clauses

Another risk management consideration for the Owner is the area of delay dam-
ages. The Owner can insert a no-damage-for-delay clause in the Contract, thus
attempting to shift the burden of risk for delays to the Contractor. However,
the use of this type of exculpatory language may increase the amount bid by a
Contractor and is still no guarantee that a dispute over delays will be prevented.
The Owner should research the use of a no-damage-for-delay clause with quali-
fied counsel before including it in the Contract. An alternative approach is to
specify limits to what types of damages are allowable in the event of a delay.
Some government agencies use this approach.

CONSTRUCTION MANAGER’S CONSIDERATIONS

Some projects include a construction manager, typically abbreviated by the letters
“CM.” The CM can be hired by the Owner as its construction representative, in
which case the CM is responsible for representing the Owner and protecting the
best interests of the Owner. This arrangement is typically called “agency CM.”
In other cases, the CM may have a financial interest in the Project and may
be performing the Project at a preestablished maximum cost, often called a
“guaranteed maximum price,” or GMP. The CM may be working in a GMP
arrangement with some sharing of the savings below the GMP. These types of
arrangements are often called “CM at Risk.”
Other variations in the relationships between the Owner and the CM or the
CM and the Contractors exist, but the discussion of these relationships is beyond
the scope of this book. More details about these arrangements can be found at
the website of the Construction Management Association of America at cmaa-
net.org, or the Design Build Institute of America at DBIA.org.
Regardless of the arrangement, all of the CM’s considerations stem from the
fact that the CM’s role is unique. The CM is expected to be the Project expert
in construction management and all its many facets, including the often difficult
task of management of time and delays.
It is not uncommon for a Project to get behind schedule, and it may be dif-
ficult to recognize and enact ways to make up time. In terms of comparing time
management and budget management, it may be simple to solve a budget crisis
by securing additional funding. However, it is impossible to create more time,
especially on a Project that has a fixed deadline.

CM and the Project Timetable

The CM’s considerations regarding time begin at the inception of the Project
during the planning phase. The CM must ensure that the overall Project sched-
ule includes adequate time for all parties to perform their work, including time