What Is A PCM Agreement And Why Is It Important?
A PCM agreement, or a Program and Construction Management agreement, is a contract between an owner or developer and a Program and Construction Manager (PCM). The PCM is responsible for managing and overseeing the entire construction process from start to finish.
The PCM agreement outlines the responsibilities of the PCM, the owner/developer, and any other parties involved in the construction project. This agreement is critical to ensure that all parties involved are clear on their roles and responsibilities to minimize any potential issues or conflicts that may arise.
The PCM`s role is to provide the owner/developer with expert assistance in all stages of the construction project. These responsibilities may include project planning, scheduling, budgeting, design, procurement, construction, and project closeout. The PCM acts as an intermediary between the owner/developer and the various contractors, subcontractors, and suppliers involved in the construction project.
The PCM agreement helps to establish a clear framework for collaboration between the PCM, architects, engineers, designers, contractors, and subcontractors to ensure that the project is completed on time, within budget, and to the required quality standards.
The agreement also sets out the payment structure and the timeline for payment to the PCM, which is typically based on a percentage of the total construction cost.
One of the significant benefits of having a PCM agreement in place is that it helps to reduce the risk of delays, cost overruns, and disputes. The PCM provides the owner/developer with expert advice throughout the construction process on matters such as cost control, schedule management, quality control, and risk management. This can help to avoid any issues before they arise, potentially saving the owner/developer time and money.
In conclusion, a PCM agreement is an essential tool in ensuring the success of any construction project. It provides the owner/developer with an experienced and reliable partner to manage the entire construction process, from planning to project closeout. With a clear set of roles and responsibilities outlined in the agreement, all parties involved can work together effectively to deliver a project that meets all the required standards, within budget, and on time.