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Strong market for capital program management.

In the first half of the year, the competition for program and construction management billings has increased, and small specialized firms offering total project control are gaining the competitive edge.

The general slowdown in construction activity is contributing to a rising demand for professional program management services by public and private owners looking for on-time construction delivery and better cost control. Owners, developers, and lenders are turning to PM's to protect their investments by avoiding construction cost overruns, delays, claims and litigation. Program management is a sophisticated form of mission control for construction success. It is more than just following a blueprint, a schedule, and a budget. Capital projects require teamwork, and program managers provide the technical and managerial expertise to turn star performers, including owners, lenders, architects, engineers, contractors and builders into a winning team.

Private and public owners intent on keeping a tight rein on design and construction costs have found that intensive preconstruction analysis is key to launching and protecting the asset. Firms offering total project management can provide feasibility analyses, architect/engineer evaluation and selection, design document review, pre-bid construction simulation and building analyses, cost estimation, value engineering, financial oversight, consulting, scheduling and cost control services, as well as in-depth field management to keep the project and the players on course.

Strong management of every aspect of the project has a strong impact on costs. Firms that are large enough to handle major capital projects, but small enough to offer personalized hands-on attention from the principals, are rapidly gaining respect and attention. Management firms that combine in-depth preconstruction planning, analysis, estimating and scheduling, with hard construction experience, are in demand. State-of-the-art computerized management techniques are expected, but owners also want to know that you're not in an ivory tower - you know how to roll up your sleeves and get the job done in the field.

Client lists are growing to include not only owners and developers, but contractors, government agencies, lenders and sureties, institutions and foundations, architects and engineers. Top architectural and engineering firms are entering into joint ventures with select PM firms, because they see the benefit of putting management on the team from the start, for design coordination, cost estimation, and value engineering.

For architects and engineers, joint venturing with a PM firm that has a proven track record of success, can make the difference between winning and losing contracts in this highly competitive marketplace. When the architect puts the proposal on the table, there is more than just a vision. With the participation of a program manager, there is a detailed analysis of how it can be achieved.

The result is often that the prospective client develops a significant comfort factor with the overall capabilities of the design/management team, and allows the team to expand its services into management of the total construction program.

The market is strong for program management firms that can bring in a project on time and within budget. June marks Tri-Tech's 25th year in business, and our opportunities are better now than they've ever been. From the selection of the design team, through design and construction, to final project close-out, comprehensive expertise and meticulous attention to detail provide a comfort level that developers in both the public and private sectors can relate to. Program management is now, and promises to be in the future, the capital project advantage.
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Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Review and Forecast, Section I
Author:Geller, Richard
Publication:Real Estate Weekly
Date:Jun 24, 1992
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