Construction Industry, Real Estate Industry

Concerning the Guidelines for Usage of the CM Model

1. Background and development of the guidelines

The CM (Construction Management) Model is a management system for the construction industry that began in the United States in the 1960s. In recent years, interest in the CM Model has also become stronger in Japan with regard to the transparency of cost composition and substantive and qualitative supplementation of technical experts in ordering organizations and usage has begun for some private construction work.
However, looking at the construction industry as a whole, efforts for the CM Model are just starting, and in order to make the CM Model an established part of the construction industry management system in Japan, it is important that ordering bodies, planners, and those carrying out the work have a common understanding and awareness of the issues of the CM Model and that they use it effectively and appropriately.
Based on this, the Ministry of Land, Infrastructure, Transport and Tourism established the "CM Model Study Group" in December 2000, arranged the contents and issues for the CM Model, and published the "CM Model Usage Guidelines" on February 6, 2002 as concrete instructions for application of the CM Model.
 
December 2000 Establishment of the "CM Model Study Group" (6 meetings in total)
(The chairman:Usui Mitsuaki Professor of The University of Tokyo graduate school)
November 2001 Public announcement of the "CM Model Usage Guidelines" (mid-term report) and call for public comments
February 2002 Formulation of the "CM Model Usage Guidelines"
 

2. The CM Model

○The CM Model is one of the "construction industry management systems" where CMRs (construction managers), who are the assistants and agents of ordering organizations, stand on the side of the ordering organization while maintaining technical neutrality and conduct, in part or in total, management work, such as study of design and construction work ordering models, process controls, and cost controls.
The total ordering model is widely used in Japan, and work execution management is mainly the responsibility of the master contractor (general construction business).
○If introduction of the CM Model progresses further in Japan, the choice of construction industry management systems widens for contracting organizations.
Compared with the total ordering model, the CM Model is considered to promote transparency of the cost composition, although the risk of the ordering organization is greater.
Both the CM Model and total ordering model have their merits for the ordering organization, and both should be able to co-exist well in Japan.
 

3. Main contents of the CMR's management work

Design Stage (1) Evaluation of the design candidates (2) Support for the study of designs (3) Design VS, etc.
Ordering Stage (1) Proposal on order categories and methods (2) Public calls for contractors and evaluation of contractors (3) Support for calculation of work costs (4) Preparation of and provision of advice for contract documents, etc.
Work Execution Stage (1) Coordination between those carrying out the work (2) Creation of the plan and administration of the construction process (3) Checking the work diagrams of those carrying out the work (4) Checking the quality control done by those carrying out the work (5) Cost control (6) Reporting to the contracting organization on the work execution process (7) Document administration, etc.
 

4. Issues for introduction of the CM Model

○It is necessary to study the following issues for introduction of the CM Model in Japan
(1) Official status of the CMR
(2) Risk burden and responsibility relations
(3) Transparency of the cost composition
(4) Calculation of the expenses and fees to be paid to the CMR
(5) Selection and contracting of a CMR, etc.
 

5. Possibility to introduce the CM Model for public works

○The need for the CM Model is high in public works, and public ordering organizations who do not have sufficient numbers of technical experts are expected to become the main area of its use.
The pattern of CMR usage as expected for public ordering organizations is as follows:
(1) CMR for Advice on Design and Ordering
Provides advice to the ordering organization at the design and ordering stages regarding check of design plans, design VE, proposal of the order category, etc.
(2) CMR for Cost Management
Conducts cost management, such as cost analysis, calculation of construction expenses, and payment according to calculation of the actual costs.
(3) CMR for Work Execution Management
Assists in a part of the administration work of the ordering organization, such as inspection of work execution diagrams, coordination between those carrying out the work, and administration of the construction process.
(4) CMR for General Management
Conducts management work as described in (1) to (3), in whole or in part.
(5) At Risk CMR
Takes responsibility for the risk related to construction work (however, study of the legal status according to the Construction Industry Law is necessary).
 
*Please click here for the CM Model Usage Guidelines
CM Model Usage Guidelines

pagetop