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Construction management should not be confused with Consulting and Management Services. 

Construction Management (CM) plays a similar role as the General Contractor. The main difference between the General Contractor and the CM is the contractual relationship with the owner. The CM is contracted to administrate the project for the owner, and in the interest of the owner. Generally the CM is paid a management fee. The General Contractor is contracted to provide a finished product to the owner at a contracted amount.

On clean simple projects it is normally best to use a standard agreement with a General Contractor. CM is suited for large complex projects where the owner can buy and contract directly, hence saving mark-ups on multi-layered ontracts. Another need for CM is for national chain operations with multiple projects at different locations.

Some Developments are so large that they may have many individual buildings and tenants. Each of these individual projects has its own General Contractor and the Developer has a CM coordinating the various GC’s along with the development’s infrastructure. Many of these Tenants have CM’s that coordinate between the developer’s CM and the Tenants GC.

A perfect example of this operation was the 1982 World’s Fair in Knoxville, where Rick Harbin participated as a prime Contractor, under the Developer’s CM. Harbin was also a CM for various international participants for their interior exhibits. The Fair was so large and had to be done so fast that it would not have been achieved without some stellar prime contractors directed by a very competent Construction Manager. Harbin’s role as CM was also necessary since the exhibits were being designed and detailed as they were being assembled.

The World’s Fair was not only a construction marvel; it was a great experience for all the participants and continues to be a procedural reference for mega-projects today.

Harbin since has performed numerous times as CM, two other major CM projects were the SEG Operations in Oak Ridge TN; the world’s largest processor of low level radio-active waste, and an Isotope Enrichment Facility. Each of these projects had a three-year duration.