Ofunato Construction Management (CM) Project

Ofunato Construction Management (CM) Project

Reconstruction CM required high management skills, teamwork surpassing industry boundaries, and accountability for each process. Through making our processes transparent, we have gained and maintained the understanding and trust of society.

What is the CM Method?

CM is a method of grouping multiple projects and making bulk orders for the management, design, and construction, such as planning and coordination, together with Construction Manager*(CMR). Group orders simplify contract procedures, and the creativity of CMR enables construction lead times to be reduced. Cost plus fee contract and the open book method are adopted for contracts. Transparency on appropriate contractor profit and payment process secured entry by local companies. This not only makes effective construction using private-sector technical know-how (Knowledge) possible, but also contributes to developing local industry.

Comparison of the general ordering method and the CM method

*Construction Manager: Agent that performs all or part of various management duties.
These include design consideration, construction and cost control from the standpoint of the party ordering the construction project.

Benefits of CM method

  • Participation of private-sector contractors from the initial stage enables them to reflect their know-how to construction and procurement, contributing to the shortening of the construction period, Cost reduction, etc.
  • Use of the fast track method (method of starting construction from the section where design is complete) shortens the overall operation period, including the contract procedure period.
  • Total coordination of related infrastructure projects in the area enables effective construction operations.
  • Ability to flexibly deal with changes in business scale and price increases make it possible to secure a reasonable profit.
  • Supplements insufficient manpower of the ordering party

Going Forward

In the renovation project using the CM method at the Ofunato Station area in Ofunato, a sincere response to the local area, which is our strength, has helped structure an extremely favorable relationship with the city of Ofunato and its residents. This is a good example that has led to project promotion. The know-how accumulated through boldly deploying new business models, we feel, will be valuable knowledge foreseeing diversity in the ordering system in line with the changing environment in the future.