Masonry Magazine April 1973 Page. 22
The Project Owner
(Continued from page 6)
The government, therefore, having few of the alternatives available in the private sector, is spearheading the practical applications of the construction management function.
It's still too early to tell, though, how much of this approach will carry over into the private sector, or even how broadly construction management will be used throughout the massive, public construction market.
There's little doubt, however, that the Construction Manager we see emerging on the scene is bound to have pronounced effects in many sectors of the industry-perhaps even probing into the traditional buying habits of contractors.
Another continuing trend is the growth of the design/construct firm, which is also known as package builder, turnkey operator, or, simply, a design and build firm.
These companies respond to owner demands by guaranteeing that a facility will be built by a specific date and at a particular cost. They also provide the owner with a complete package of services, including programming, design, construction, and sometimes even operation.
This is another step in eliminating the traditional process, whereby the architect takes bids and the general contractor has price and schedule responsibility. This type of operation derives typically from general contracting firms, as well as some engineering firms.
Architectural field in state of flux
The practice of architecture is in a state of flux, as the profession responds to new challenges and new demands. In general, architectural services are expanding to include construction management, real estate, interior designing, engineering and planning.
Many owners are turning to integrated architectural/engineering firms because they offer all necessary professional capabilities, as well as management control. The larger architectural firms are expanding by acquiring these new capabilities themselves, or merging with other firms. In addition, some are merging with major corporations.
The spokesmen for the architectural profession believe greater use will be made of performance specifications as both owners and architects attempt to cope with the mounting number of building products now available. This will enable design professionals to focus more on their discipline, and assume responsibilities of systems coordination and construction management.
Contractor's role undergoing change
The contractors' position in the industry is also changing, as this important branch responds to the urgent need for speedier construction. Contractors, too, are getting larger, with small and financially weak operations being acquired by others or dropping out. In addition, more and more contractors are becoming national in scope, as projects grow in size and complexity.
Increasingly, general contractors are negotiating directly with owners to execute projects for a flat fee or on a cost-plus basis.
The contractor, at present, often performs the function of construction manager, but his future role is uncertain as increased demands are made of the construction management function. Certainly, if the contractor is able to maintain and extend his capabilities as construction manager, he will become a stronger, more dominant industry force.
Right now, however, the responsibility for this management function is up in the air. It is now being performed by architects, cost consultants, and owners themselves, in addition to contractors. While these groups vie for greater construction management and control functions, the distributors and manufacturers of construction materials and equipment are left pondering what new factors will now influence the production, marketing, distribution and acceptability of their wares.
By "manufacturer" I include not only the producer of traditional on-the-shelf products but those who apply mass production manufacturing methods in an effort to reduce construction time and the reliance on expensive field labor. These include firms involved in prefabrication, componentized construction, industrialized construction, modular construction, and systems construction.
Manufacturers face unique opportunity
Many of these terms and concepts strongly overlap. Simply stated, these are firms utilizing prefabrication and mass production manufacturing techniques to produce larger, more comprehensive, multi-function building components and modules which can be integrated into a project.
If spokesmen such as Bob Hastings are correct in their anticipation of building teams headed by design professionals, manufacturers then will gain a unique opportunity to join the team in the capacity of problem-solvers rather than vendors.
Design teams, responding to increased pressures of quality, cost and time on construction, will then rely more on producers able to meet performance specifications and also guarantee in-place performance of systems or sub-systems. It will afford manufacturers an opportunity to join the team in its early stages and receive a professional fee for the counsel they provide. Later, as the project progresses, there may also be an opportunity for producers to negotiate for the manufacture and even installation of the particular system. All of this spells major changes in the traditional manufacturing, marketing, distribution and selling practices of producers.
Project owner to have more say-so
One conclusion would seem to border on certainty, however. Where contractors' buying decisions were once strictly independent-based solely on considerations affecting their profits-in the future, the project owner himself will often be exercising prerogatives of his own which will, in turn, influence contractors' equipment needs.
To what extent that new influence exerted by the project owner will affect manufacturers' and distributors' marketing techniques, remains to be seen; but, undoubtedly it will be there to be reckoned with.
Despite progress in systems construction technology, its degree of use relative to traditional construction methods in housing, for instance, remains small. Excluding mobile homes, modular construction and by this I mean prefabricated shells or modules joined together like building blocks at the site accounts for only a few per cent of all housing units produced in the United States. But the market for this type of industrialized housing is growing fast, with increasing customer acceptance of the fact that factory-made shelter is not a low quality approach to housing, according to the National Association of Building Manufacturers.
As the application of industrialized production techniques and systems construction expands, as I think it will, the market for individual products and materials will take on a new shape and character. Greater rapport than ever before will be needed between manufacturers, designers and (Continued on page 32)