The Cost of Selecting a Construction Management Firm on Price Alone
In The Bronzo Beat with Frank Bronzo – Episode 1: The Cost of Selecting a CM Firm on Price Alone, Frank shares insights from over 30 years in municipal infrastructure.
While upfront costs often drive decision-making, the true cost of a project includes construction, long-term maintenance, and transportation efficiency. Partnering with a qualified construction management company early can help reduce costs across the entire project lifecycle and improve overall outcomes.
The Risks of Prioritizing Cost Over Experience
When projects are awarded based on the lowest price, firms may reduce effort to stay within budget. This can lead to:
- Delays
- Change orders
- Lower quality work
Relying on price alone instead of experience or qualifications can create long-term issues. Many construction management companies emphasize value-based selection because it leads to more reliable and efficient project delivery.
Looking Beyond Upfront Costs
Initial project development typically makes up less than 15% of the total project cost. The majority comes from construction and long-term maintenance.
Focusing only on upfront savings can lead to higher costs over time due to repairs, inefficiencies, and reduced lifespan. Investing in construction management services early helps ensure better planning, coordination, and long-term cost control.
The Value of Early CM Involvement
As Frank explains, bringing in a construction management consultant early allows teams to identify issues before construction begins.
With experience in design, planning, and funding, a strong construction management service can help:
- Improve efficiency
- Reduce delays and change orders
- Minimize community disruption
This proactive approach is a key advantage of working with experienced construction management companies.
Key Takeaways on Choosing the Right CM Approach
Choosing a firm based on price alone can lead to higher costs over time. Working with a trusted construction management company early helps reduce risk and improve long-term results.
Want to dive deeper into Frank Bronzo’s advice on construction management? Watch The Bronzo Beat with Frank Bronzo – Episode 1: The Cost of Selecting a CM Firm on Price Alone.