An interview with CMAA's President Blake V.Peck, CCM
This interview was originally published inEngineering News Record's 6/17/02 issue.

Isn't construction managementalready the responsibility of the general contractor?  Why does an ownerneed a separate professional to deliver this function?

Peck: The construction industry today has become extraordinarilycomplex, with more specialization than ever before. Things that not so long ago weren’t even considerations from a social,political or environmental perspective are now very much in the forefront ofowners’ minds. 

   Thewhole process of delivering projects successfully has become very sophisticatedand this is often quite challenging to owners, even very experienced andknowledgeable owners. You need different skill sets and resources, and it’shard for any owner to have them all.  

The general contractor is directly responsiblefor the actual performance of the work, and contractors can employ a variety ofmethods to control labor, materials and equipment to accomplish this. Construction management, on the other hand, is a professional managementpractice that can be applied to projects from inception to completion regardlessof the chosen delivery method.

Whatextra value does a CM bring to a project?  Why add another participant towhat's already a crowded chain of command?

Peck: Oneof key advantages of construction management is that it allows the owner to makeuse of expert advice that is unaffected by any potential conflict of interest.The consultant CM is the owner’s advocate and representative. The designer has liability considerations while the contractor has afinancial risk in performance of the project. 

Actually, the proliferation of participants inthe chain of command is a strong reason to pursue professional constructionmanagement services.  It’s hardfor any other project player to see the entire picture from pre-design throughcompletion, and to represent the owner without conflicts or special interests atevery stage.

Whatis the difference between Agency CM and the CM-At-Risk delivery method and howdoes CM-At-Risk work in the context of other popular project delivery methodslike Design-Bid-Build or Multiple Primes?

Peck: CM-At-Riskis a distinct delivery method, where the CM has direct responsibility forconstruction performance, and generally has provided a fixed price assurance tothe owner.  Agency CM, in contrast,is a distinct set of professional services that can be applied to any deliverymethod.

In CM-At-Risk, the Construction Managerprovides advice to the owner prior to construction, which delivers real value upfront and greatly helps to streamline the entire operation of the project.  The CM later converts to the equivalent of a contractorduring construction.  The result isa combination of expert construction advice during the design phase when it willbe most effective, plus the ability to fast-track construction. For example, portions of a project can be let out for bid one at a time,rather than having to wait for complete packages.

The CM-At-Risk delivery method also allows theowner to build on a working relationship that has already been established.  This represents a significant step up in the level of serviceto the owner, by involving the CM as an advisor during the design stage.

Whatdo you mean by “program management” as distinct from constructionmanagement?

Peck: It’sincreasingly common for owners to have construction programs with a variety ofprojects underway at once, either in the design stage or in actual construction. In cases like these, all of the complexities I mentioned earlier aregreatly multiplied, particularly if there are multiple contractors and designersinvolved.

We see program management as the practice ofconstruction management, applied in a consistent and comprehensive way to acapital improvement program that may involve a number of projects. With the program management approach, the CM is involved in the actualplanning through the design stage, continuing on through procurement,construction, closeout and activation, using comprehensive constructionmanagement services to integrate all the different facets of the program. The idea is to provide standardized technical and management expertisethroughout.

Where are the biggest needs oropportunities for construction management in the near future?

Peck: Programmanagement in general is one of our biggest opportunities. In addition, there are definitely certain sectors that are hot right nowand likely to remain so.  We findthat as owners come under ever tighter fiscal constraints, they will lean moreheavily on outsourcing to help them do things that may have been in the pasttraditional owner functions or services.

Market sectors that look extremely stronginclude K-12 and higher education, where we’re seeing interest in both newconstruction and renovation to improve our nation’s educationalinfrastructure.  We see intenseactivity involving the entire gamut of educational facilities, a push the likeof which we haven’t seen in many years.

Growing populations are also putting morepressure on other infrastructure components, including water and wastewater,highways, mass transit and other transportation resources. 

These new projects are often being built underthe responsibility of public officials who are not accustomed to managingprojects of this magnitude.  We’vealso seen a serious brain drain in public agencies in recent years. People in leadership positions now are much less experienced than thepeople who held the same positions ten years ago. As a result, many agenciesthat never went outside before are now being forced to outsource in order tomanage their programs effectively.

What accounts for CMAA's rapidgrowth in the last two years?  Where is the association headed?

Peck: CMAAhas grown so strongly because we’ve been very responsive to the industry andworked to deliver what the industry is looking for.  We’ve transformedCMAA from a straightforward trade organization into one whose chief mission isactively promoting excellence within the process of program management andconstruction management.

By promoting professionalism and standards ofpractice, we’re meeting a serious need of owners and at the same timeproviding a major boost to our profession.  Efforts like our CMCertification program are a great boon both to owners and to the profession.

CMAA also strives to listen attentively to allof the different voices and interests in our industry. We recognize thediversity of our business and want to provide valuable support to all kinds ofmembers.  Incidentally, one of the striking things about CMAA’s recentgrowth is the expansion of our local and regional chapter roster.  Thechapters are terrific arenas for networking, business building and for deliveryof high-value programs, so we’re very encouraged by the enthusiasm with whichour members are supporting their local chapters and creating new ones.

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Blake V. Peck, P.E., CCM is the Executive VicePresident for McDonough Bolyard Peck, Inc. in Fairfax, Virginia.  He can bereached at (703) 641-9088 or via email at bpeck@mbpce.com.