Construction Management

Construction Management - Construction Management encompasses the professional planning, coordination, supervision, and control of a construction project from conception through to handover. The construction manager acts on behalf of the client and handles tasks such as scheduling, cost control, contract management, and quality assurance. In the German market, construction management largely corresponds to project management as defined by AHO (Committee of Associations and Chambers of Engineers and Architects).

Scope of Services

Construction Management is divided into five areas of activity (in accordance with AHO Booklet No. 9):

• Organization and Information: Establishing the project organization, information management, documentation, and reporting
• Quality and Quantity: Definition of project objectives, ensuring planning quality, monitoring execution quality
• Costs and Financing: Cost planning, budget monitoring, cash flow planning, review of change orders
• Schedules and Capacities: Creation and updating of the schedule, coordination of trades, bottleneck management
• Contracts and Insurance: Support with contract awards, contract review, claim management, insurance coordination

Distinction from Construction Management and Project Development

• Construction Management / Project Control: Manages the overall project on behalf of the client - overarching coordination without providing planning or execution services
• Construction Management (LP 8 HOAI): Monitors construction execution in detail - is on-site at the construction site and checks the quality of workmanship
• Project Development: Takes place at the beginning - site search, usage concept, feasibility study, permitting

Digital Tools in Construction Management

Modern construction management uses digital planning and coordination tools to manage projects more efficiently. Building Information Modeling (BIM) enables the digital planning and coordination of all trades within a shared data model - conflicts between trades are identified during the planning phase before they become costly on the construction site. Project management software such as Procore, Planner 5D, or MS Project enables real-time scheduling, task assignment, and documentation. Digital data rooms ensure access to up-to-date planning documents for all project stakeholders.

For renovation projects-especially in Nuremberg’s Old Town, where historic buildings, tight construction sites, and historic preservation requirements converge-the use of digital tools is particularly valuable, as it facilitates coordination among trades and simplifies documentation for the historic preservation authority.

Construction Management vs. Site Management vs. Project Development - Scope of Services

Feature	Project Developer	Construction Manager / Project Manager	Site Manager (Architect LP 8)	General Contractor
Phase	Concept/Approval	Planning through Handover	Execution	Execution
Client	Investor	Building Owner	Building Owner	Building Owner
Liability	Project Risk (Equity)	Consultant Liability	Planner Liability (VOB/B, HOAI)	Contract for Work Liability (§ 634 BGB)
Fee	Project profit / margin	2-5% of construction costs	2.5-4% of construction costs (HOAI LP 8)	Lump-sum contract
On-site at construction site	No	Regularly	Daily	Yes (own crews)
BIM Coordination	No	Yes (overarching)	Disciplinary Model	Disciplinary Model

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that building owners in the Nuremberg metropolitan region engage a professional construction manager or project manager for construction projects with a budget of approximately 500,000 euros or more. The costs typically amount to 2-5% of the construction costs and pay for themselves by preventing cost overruns and schedule delays-studies show that professionally managed construction projects experience, on average, 10-15% fewer cost overruns than unmanaged ones. Professional project management is indispensable, especially for complex renovation projects in Nuremberg’s Old Town-where historic preservation, cramped construction sites, historic building structures, and often unknown construction conditions converge. Ask us for recommendations on project management firms in the region.

Frequently Asked Questions

Do I need a construction manager if I already have an architect?

The architect designs the building and, as a site supervisor, oversees the craftsmanship-but they are not a project manager in the broader sense. The construction manager manages the entire project: budget, deadlines, contracting, and the coordination of all parties involved in planning and execution. For smaller projects up to approximately 300,000 euros in construction costs, the architect can fulfill both roles; for larger or more complex projects, a clear separation between planning and project management is recommended. The construction manager brings a client-side perspective that the architect, due to the nature of their role, cannot fully adopt-they represent exclusively the client’s interests, not their own planning services.

How much does a construction manager cost?

The fee is based on the AHO fee schedule or is freely negotiated and typically amounts to 2-5% of the billable construction costs. For a construction budget of one million euros, this results in a project management fee of 20,000-50,000 euros. Alternatively, a flat fee or an hourly rate (120-180 euros/hour) is agreed upon-the latter is suitable for projects with a scope of work that is difficult to estimate. In practice, the fee for an experienced construction manager often pays for itself through a single successfully defended claim for additional payment or a avoided schedule delay.

What is Claim Management in Construction?

Claim management is the systematic recording, evaluation, and enforcement of claims in a construction project. It operates in two directions: defensively (defending against unjustified claims by contractors) and offensively (enforcing one’s own claims against contractors who deliver substandard or delayed work). Professional claim management requires complete construction documentation-correspondence, daily construction reports, and photographic documentation are the most important evidence in the event of a dispute. For large-scale projects in Nuremberg-such as commercial developments, residential neighborhoods, or care facilities-additional claims can easily reach 10-20% of the original contract amount; active claim management significantly reduces this risk.

For building owners in the Nuremberg metropolitan region, the following applies: A good construction manager almost always pays off-especially for renovations of older buildings, historic properties, and publicly funded projects, where complete documentation of fund usage and construction quality is essential.

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