Construction management

Within our Construction Management services, we coordinate all stakeholders and subcontractors in a matrix structure, assuming a more intensive role compared to merely supervising a single general contractor.

We manage the entire implementation and construction process. Instead of relying on a single general contractor, the client receives financial, legal, and other guarantees (such as enforcing withholding penalties or default interest) from multiple subcontractors in smaller amounts, tailored to the specific project.

In construction projects, we strive to balance cost efficiency, timely execution, and premium quality. If any of these aspects become disproportionately important to the investor, a Construction Management approach is definitely worth considering.

The client must evaluate the risks associated with a general contractor versus the benefits of mitigating or replacing them. For instance, if the general contractor fails to deliver on time, the client in a traditional model would be highly exposed. However, with Construction Management, it is relatively easy to replace an underperforming contractor. While in the conventional model, 3E primarily supervises the contractor, in a CM arrangement, we coordinate a large number of contractors and directly manage technical implementation.

Beyond project management and construction supervision, a third unit is also established to handle the tasks traditionally performed by a general contractor.

In an international multinational context, this model is implemented as the EPCM (Engineering, Procurement, and Construction Management) approach. Many of our clients, including P&G, GSK, and Mars, operate their international projects under the EPCM model.

The Construction Manager oversees design development, launches tenders, and implements the project as part of construction management. This approach provides investors with a different set of guarantees and more control compared to what a general contractor can offer.

The ability for swift intervention is often weighted more heavily. For example, addressing material shortages or capacity constraints more effectively ensures that the project stays on track and meets critical deadlines. This results in greater overall value for the client compared to traditional general contracting. Many potential dead ends can be avoided, making the project more manageable for the investor.

In CM construction, experience shows that timely intervention is possible, such as replacing unavailable equipment or selecting alternative suppliers.

In summary, the risks in CM differ from those in the traditional general contractor model but are often less severe for the investor. Additionally, this approach frequently leads to cost savings on the overall investment.

Within the 3E Group, Construction Management services are provided by 3E Construction Management Kft.

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