FEATURE
Forward-thinking – K2CM MD Paul Franklin says construction management ( CM ) is regarded as one of the best ways to procure major projects .
Hard hats , high hopes
The impending boom of Construction Management
K2CM ’ s managing director Paul Franklin shares his view on the current state of the construction industry …
The industry is looking for a model that better balances risk , enhances transparency , accountability and collaboration , while speeding up project delivery .
The construction industry today faces serious challenges including contractor insolvencies , rising material costs , high interest rates and a shortage of skilled labour .
The recent collapse of ISG ’ s UK operations and Laing O ’ Rourke ’ s record losses last year highlight the fragility of traditional procurement models , where risk is largely shifted onto contractors .
In a market characterised by economic uncertainty , clients and investors are increasingly wary of relying on contractors who may lack the financial stability to manage these risks effectively . The long-standing design and build ( D & B ) model is broken and often results in costly revisions , as contractors must frequently rework designs to make projects viable .
It also creates a power imbalance , forcing smaller subcontractors to assume costs and risks they are not best placed to handle .
The industry is looking for a model that better balances risk , enhances transparency , accountability and collaboration while speeding up project delivery .
Construction management ( CM ), which gained popularity in the 1990s and early 2000s , is regarded as one of the most intelligent ways to procure large-scale construction projects .
CM offers a forward-thinking alternative by involving a professional construction manager from the earliest stage , working directly with the client to manage project risks and streamline the process .
Please visit k2cm . co . uk to find out more .
Unlike D & B , CM reduces the compounded transactional costs inherent in traditional construction hierarchies . Each subcontractor in the chain typically adds a margin to cover their own risk , which leads to cumulative cost inflation as risk is repeatedly factored into tendered prices .
CM , on the other hand , provides a transparent model where every transaction is open to scrutiny , hidden costs are minimised and all savings generated are passed on to the client , while also ensuring fair compensation across the supply chain .
CM promotes a collaborative approach at every level of the project , moving away from the adversarial relationships often seen in D & B .
Each team member has a clearly defined role , allowing specialist subcontractors to offer valuable input on buildability , innovation and design feasibility from an early stage and throughout the project .
By overlapping design and construction phases , CM achieves better programmes ( by up to 50 %), better cost control and a better building .
Additionally , CM upholds high standards of environmental , social and governance ( ESG ) compliance and encourages collaboration through the integration of the entire supply chain .
By prioritising cost-efficiency , transparency and collaboration , CM stands out as a resilient , adaptable model – tackling today ’ s industry challenges head-on and laying the groundwork for a sustainable future .
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