Improvement Needed in PBS's Use of Construction Manager as Constructor Contracts

The purpose of this memorandum is to convey our concerns regarding PBS’s award and administration of capital construction contracts using the Construction Manager as Constructor (CMc) project delivery method. Of particular concern, contracting officers need to ensure that construction contractors appropriately accumulate and report project costs. Additionally, contracting officers need to avoid making improper adjustments to the CMc contract’s guaranteed maximum price (GMP), and ensure that the CMc contract’s GMP is not converted to a firm-fixed price prematurely. In light of PBS’s significant current and anticipated CMc workload, failure to mitigate these concerns will put PBS at considerable financial risk for overpaying for construction work.