A large central Missouri school district is in the process of designing and building several new buildings. The local newspapers reported that the district has added the new position of "construction manager" to its staff. This person is to be paid an annual salary of $85,000.
As I reported in the last blog page, retired construction personnel can be hired for much less to perform paper pushing duties and act as the representative of the school district than a construction management firm. This district has plans to spend approximately $60 million on its construction program. If a cm-agent firm were hired at the rates paid to the district I cited earlier, that amount would be in excess of $6 million, without factoring in the markups of trade contractors bidding to a cm-agent. By adding a new staff position to its facilities department, this large school district will pay $850,000 for the next ten years in salary for the same work, plus it will save at least another 10-15% in reduced costs for the same construction work by bidding the work to general contractors.
These same figures apply to any public building, whether county, city, hospital or other public agency, which fall under the definitions in the Missouri Revised Statutes.
As I reported in the last blog page, retired construction personnel can be hired for much less to perform paper pushing duties and act as the representative of the school district than a construction management firm. This district has plans to spend approximately $60 million on its construction program. If a cm-agent firm were hired at the rates paid to the district I cited earlier, that amount would be in excess of $6 million, without factoring in the markups of trade contractors bidding to a cm-agent. By adding a new staff position to its facilities department, this large school district will pay $850,000 for the next ten years in salary for the same work, plus it will save at least another 10-15% in reduced costs for the same construction work by bidding the work to general contractors.
These same figures apply to any public building, whether county, city, hospital or other public agency, which fall under the definitions in the Missouri Revised Statutes.
I have been asked about the applicable laws that govern these types of public construction issues. The Missouri Revised Statutes most applicable are:
Chapter 177, School Property and Equipment, Section 177.086, Also, section 177.082,
Chapter 327, Architects, Professional Engineers, Land Surveyors and Landscape, Section 327.465
Chapter 8,
Chapter 432, Contracts to be in writing, Section 432.070
No comments:
Post a Comment