Management Contracting

Management Contracting is a traditional form of procurement for construction projects in which the Client appoints a Management Contractor on the basis of a fee and usually agreed staff and organisation costs, to manage a construction project. As the design develops and individual Works Packages are tendered, the Client instructs the Management Contractor to enter into contract with the Works Contractors and manage the whole project.

Management Contracting is similar to Construction Management in that each party is engaged to do what they do best, that is designers design, trade contractors deliver their trade, and the management contractor manages the project.

Management Contracting is suitable for Clients that wish to retain control of their project and the benefits of an "advocate" Management Contractor, but reduce the number of individual contracts and associated administration.

A common shortcoming of Management Contracting is that the process is not transparent from the point that the Management Contractor appoints a Works Contractor. The relationship between the Management and Works Contractors becomes "closed book", and the Client loses transparency and an element of control.

Heeryis different. On a Heery Management Contracting commission, Heery adopts the Construction Management philosophy of "transparency" and "client advocacy" throughout.

Balfour Beatty