CASE #$3$

The construction industry is profitable and hectic. In this scenario the general contractor is

having a difficult time hiring knowledgeable, skilled and qualified project managers. The

officer in charge $($OIC$)$ has hired four new project managers $($A$,$ B$,$ C and D$)$ within the last

three months. The OIC performed a diligent interview and reference check on each perspective

employee. They are about to receive the following reports from the superintendents, who are

working with these individuals on three separate projects.

Project manager A likes the detail. They are very thorough in his research and the work

is very accurate. Unfortunately, all of this accuracy is taking too much time. They tend

to hold RFIs and submittals and subcontractor change order requests too long. They

tend to hand out last week's meeting notes at the beginning of the next week's meeting.

Presently, delay and impact notices are now coming in from all of the subcontractors.

Project manager B has a field background. They were a journeyman carpenter before

going to college to get a construction management degree. They spend most of the day

outside of the trailer. They are prone to provide direction to the GC$\text{'}$s and

subcontractor's field forces, bypassing their superintendent and that of the

subcontractors. Their paperwork is being performed adequately during off$-$hours. The

general contractor's superintendent is about ready to quit.

Project managers $C$ and $D$ were educated as a structural engineer. They have

professional engineering licenses and lets everyone know it$.$ They are constantly

second$-$guessing the design documents and design team direction, but they are always

correct. They both have written several negative letters to the design team and is

copying the city and the client with these letters. The design team is about ready to

mutiny; even a subcontractor has written a letter requesting to be let out of their

subcontract. In addition, their project management paperwork is always excellently

written and timely. They both always returns a profit.CASE #$1$ The Able construction company identifies as a design$-$build general contractor but actually operates more as a construction manager company. They sell their services as being an agent for the owner. This firm will procure all design and construction services, originate the contractual agreements, charge a fee on all hard and soft costs, but have the second$-$tier firms execute their contracts with the project owner directly. This method of procurement is referred to as a pass$-$through contract. The construction manager $($CM$)$ does not sign or initial any of the contract documents, pay requests, change orders, requests for information $($RFIs$),$ submittals, etc. The CM explains to owners the attractiveness of this contracting arrangement as a means of saving additional tax and insurance markups. The CM does not have problems convincing the subcontracting and supplying firms of the advantage of contracting directly with an owner, as these firms are now one step closer to the owner, and subsequently the bank. Several of this CM$$s projects have had problems with second$-$tier contractors $($such as foundation settlement, lack of sufficient air conditioning, window leakage, roof leakage, or dead landscaping$).$ In each instance, the CM has stepped back, not protecting the owner, and forces the owner to resolve problems with subcontractors directly. On other projects, there have been problems with the owner not paying the contractors or designers, and again the CM has stepped back, not protecting the subcontractors. The second$-$tier firms have had to pursue resolution, through liens or other means of collection, with the owner directly. The pass$-$ through CM receives a guaranteed lump sum fee for their services and jobsite general conditions are cost reimbursable. Questions: $($NOTE: Explain Your Answers in Detail. Think Outside the box i$.$e$.$ subsequent damages, countersuits$)$ What is wrong with this system? $$ How can it be improved and still utilize the services of a construction management or owner$$s representative firm or individual? $$ How could a general contractor or CM improve this condition or situation, if at all legally?CASE #$3$

The construction industry is profitable and hectic. In this scenario the general contractor is

having a difficult time hiring knowledgeable, skilled and qualified project managers. The

officer in charge $($OIC$)$ has hired four new project managers $($A$,$ B$,$ C and D$)$ within the last

three months. The OIC performed a diligent interview and reference check on each perspective

employee. They are about to receive the following reports from the superintendents, who are

working with these individuals on three separate projects.

Project manager A likes the detail. They are very thorough in his research and the work

is very accurate. Unfortunately, all of this accuracy is taking too much time. They tend

to hold RFIs and submitt