Understanding Construction Management Agreements Part 1: Pricing

This program is Part 1 of a four-part series of programs designed to foster a comprehensive understanding of construction management agreements (CMAs) for attorneys and other professionals engaged in the construction industry. Part 1 will cover pricing (cost plus, GMPs, and stipulated sums); Part 2 will cover scheduling; Part 3 will cover defects and damages, and Part 4 will cover insurance and liability. The speakers will consist of construction attorneys and consultants, and both technical and legal aspects of the construction process will be presented. 

Part 1 is moderated by Kenneth M. Block,  Chair of the Construction Practice Group at the New York City firm of Tannenbaum Helpern Syracuse & Hirschtritt LLP. The other speakers are Stuart B. Rosen, a partner at Tannenbaum Helpern, and RJ Panda, Vice President of  Lehrer Cumming, a project management firm. 

Learning Objectives:

1. Discuss the different forms of different delivery methods under CMAs and the transfer of risk of each

2. Offer the business considerations for choosing cost plus, GMP, or stipulated sum pricing

3. Explain how pricing is determined for each of the three delivery methods

4. Develop an understanding of the pricing elements, such as trade costs, general conditions, contingency, fee, and insurance

5. Explain the preparation and negotiation of a GMP

6. Explain the use of contingency and shared savings under GMPs

7. Discuss payment application process