Management contracting

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Management contracting
  • What is management contracting?
  • Role of management contractor
  • Why use management contracting—advantages and disadvantages

Management contracting

This Practice Note provides an overview of Management Contracting and why this type of procurement is used.

The most popular procurement methods in the UK construction industry at present are either the traditional or the design and build routes (see Practice Notes: Traditional procurement of construction contracts and Design and build procurement). Management procurement is less popular, although this was not always the case. During the late 1980s and early 90s management procurement was favoured for many of the large commercial developments built at that time. It is possible that the pendulum will swing that way again in the future. The two most common variants of management procurement are management contracting and construction management. See Practice Note Construction management.

What is management contracting?

Management contracting is a derivative of the traditional procurement method. It was introduced into the UK from the US construction market as an attempt to address some of the perceived adversarial attitudes which prevailed at the time.

Under a management contracting arrangement the employer engages its own professional team to undertake the design of the project in the usual way, but also engages a management contractor who occupies the position held by the main contractor under the traditional procurement method. Like a traditional contractor, a management contractor engages a number of sub-contractors who actually carry out separate packages of the construction work. The management

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