One disadvantage of Construction Manager as Adviser is that there is no competitive bidding on the cost.

Prepare for the NCARB Project Management Exam. Use multiple choice questions, hints, and detailed explanations. Gain confidence and excel in your exam!

Multiple Choice

One disadvantage of Construction Manager as Adviser is that there is no competitive bidding on the cost.

Explanation:
Construction Manager as Adviser places the CM in an advisory role during design and procurement, but does not require open, market-driven bids for the final construction cost. Because the CMA does not contract the construction work or oversee a formal competitive bidding process for the price, the owner often ends up negotiating with a limited set of contractors rather than having multiple bids compete to set the cost. This reduces price competition and can lead to costs that aren’t driven down by a broad market response, even though the arrangement can improve early cost control and decision speed. In short, the trade-off is losing the assurance of competitive bidding on construction costs in exchange for the CMA’s guidance and preconstruction support.

Construction Manager as Adviser places the CM in an advisory role during design and procurement, but does not require open, market-driven bids for the final construction cost. Because the CMA does not contract the construction work or oversee a formal competitive bidding process for the price, the owner often ends up negotiating with a limited set of contractors rather than having multiple bids compete to set the cost. This reduces price competition and can lead to costs that aren’t driven down by a broad market response, even though the arrangement can improve early cost control and decision speed. In short, the trade-off is losing the assurance of competitive bidding on construction costs in exchange for the CMA’s guidance and preconstruction support.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy