Managing large scale construction projects can be very complicated. Among the many factors to be considered is whether to utilize a single prime contractor, or allow multiple prime contractors to manage various aspects of the project.
As CM3 approaches nearly 20 years of providing Comprehensive Energy and infrastructure upgrades to our customers, the benefits of utilizing a single prime contractor for large scale facility upgrades has become clear.
Several significant benefits to utilizing a single Prime Contractor on capital improvement projects are highlighted below:
- Single Point of Contact:
Using multiple prime contractors means that the burden of project management falls to a leader in the customer organization. This leader traditionally carries a full load of preexisting responsibilities. The process of managing multiple prime contractors complicates the project management process as the internal representative is tasked with actively managing multiple contractors who may have competing schedules and interests.
A single prime contractor shifts the burden of active contractor management to a representative who has the experience and bandwidth to effectively manage the project. It is then only necessary for a customer representative to manage one contact for information related to every aspect of a project.
- Single Point of Accountability
Managing multiple prime contractors can mean managing multiple scopes of responsibility. Without a single point of accountability, when a problem arises on a project, significant time and energy can be spent by the customer representative managing the many contractors before responsibilities are accepted and action is taken to address a problem.
A single prime contractor on a project provides the customer a single point of accountability for any issue, and streamlines the customer’s efforts toward resolution.
- Cost-Effective Procurement and Management
Administrative costs related to managing multiple prime contractor bids can escalate the upfront costs that a customer incurs on a project. Additionally, multiple prime contractors can increase the number of change orders throughout the project, escalating the total cost of a project.
Utilizing a single prime contractor for a project lowers the administrative cost and reduces the number of change orders throughout the process, significantly reducing the overall procurement costs related to a project.
While there are applications for both contractor models to meet the diversity of construction projects in our market, CM3 has found that serving as a prime contractor on Guaranteed Energy Savings Act (GESA) projects in Pennsylvania has provided the customer significant benefits that would have otherwise been more difficult to achieve using alternate models.
CM3 takes pride in providing the benefits of utilizing a single prime contractor for large scale performance contracting upgrades to their customers.