Construction Management contracts, including Construction Management/General Contractor and Construction Manager at Risk models, facilitate collaboration among the Owner, Constructor, and Designer in an open and transparent environment. Early Construction Manager engagement allows continuous feedback to the consultant team and Owner, promoting collaboration for cost control, risk management, planning, design optimization, and overall project success.

The PDB model fosters enhanced collaboration among the owner, designer, and contractor by utilizing a two-phased approach. In this model, the design team is directly contracted to the constructor and engages in a development phase with the owner to finalize the design, project cost, and schedule. Once all aspects are agreed upon, the project transitions into the implementation phase. PDBs can incorporate target price, GMP, or lump sum cost elements, with a target cost regime being a preferred option to encourage effective collaboration, balanced risk sharing, and potential pain/gain share mechanisms between the owner and contractor.

Key Benefit: The PDB model promotes enhanced collaboration and cooperation among the owner, designer, and contractor. By engaging in a development phase to finalize design, cost, and schedule, the PDB model ensures alignment and agreement before moving into project implementation. Utilizing a target cost regime within PDBs supports effective collaboration, balanced risk sharing, and incentivization through potential pain/gain share mechanisms, leading to successful project outcomes and mutually beneficial partnerships between all parties involved.

IPD and Alliance models offer collaborative contracting approaches where all project participants collectively share in the project's success or failure. In both models, a single shared agreement is signed by the owner, contractor, and designer, and project decisions are consensually made based on what is deemed best for the project. These models are best suited for complex projects with undefined scopes and unquantifiable risks due to the substantial resources and learning curve involved. Participants in IPD and Alliance contracts are reimbursed at cost for both the development and implementation phases, with a portion of the fee put at risk in case of cost overruns beyond the target price.

Key Benefit: The IPD and Alliance models foster collaborative decision-making and shared accountability among all project stakeholders. By operating under a single shared agreement and making unanimous decisions in the project's best interest, IPD and Alliance models promote alignment and cooperation throughout the project lifecycle. These models are particularly effective for complex projects with uncertain scopes and risks, ensuring that all participants are incentivized to work together towards achieving project success while managing costs effectively.