Information transfer between a Construction Manager (CM/GC) and an Owner is inherently complex. Given the fast-paced nature of the industry, data is constantly evolving, requiring careful timing and preparation before transmission. This creates an inevitable information imbalance between the CM/GC and the Owner, as it takes time and deliberation to filter and process updates. Owners, however, need timely and transparent access to critical information in a digestible format. One of the most effective ways to enhance the speed, quality, and transparency of information flow is through objective third-party involvement. Third parties have long played a vital role in the construction phase by providing unbiased analyses that help both CM/GCs and Owners make informed decisions. During procurement, this role is just as crucial. A third-party assessment of Subcontractor risk fosters proactive, collaborative discussions, allowing for deeper analysis beyond the in-house resources available to the CM/GC or Owner.
Transparency
While the CM/GC is ultimately responsible for a project's success, Owners want assurance that the CM/GC is making well-informed, responsible decisions. Identifying and addressing potential friction points early is far more effective than resolving issues after they arise. Though construction is inherently collaborative, the CM/GC remains contractually downstream from the Owner and must advocate for its own interests. This natural difference in motivation can lead to conflict, but differing perspectives also add significant value to a project. The challenge lies in ensuring that these differences drive constructive outcomes rather than disputes. Third-party involvement can mitigate friction by providing neutral perspectives or structured frameworks to quantify and visualize risks. The industry already relies on various third-party professionals—such as Owner’s representatives, cost control consultants, and scheduling experts—to improve transparency and ensure accountability. By expanding the use of external insights to Subcontract risk analysis, Owners gain a clearer view of project risks and early warning signs.
Consistency
Both CM/GCs and Owners prioritize consistency, but their approaches to assessing Subcontractor default risk can vary significantly. Balancing these differences often demands additional resources, which a third party can help alleviate. Beyond improving transparency and reinforcing the CM/GC’s credibility, third parties offer practical solutions for standardizing information, reducing workload, and streamlining decision-making. The procurement phase can be particularly chaotic, with numerous moving parts and tight deadlines. Without a structured approach to expose risks equally to all stakeholders, unforeseen vulnerabilities can emerge. Third-party evaluations ensure that critical risks are surfaced in a uniform and objective manner, enabling both CM/GCs and Owners to make better-informed decisions with reduced susceptibility to communication gaps or resource limitations.
Expertise
Sophisticated Construction Managers recognize the advantages of embracing third-party involvement. While coordinating with external experts may introduce some additional work, the long-term benefits of improved planning far outweigh the inconvenience. CM/GCs operate in a competitive market where Owners and developers rarely solicit bids from a single firm. Since most CM/GCs draw from the same Subcontractor pool, their direct costs are often similar, making differentiation critical. A CM/GC’s true competitive edge lies in the value they bring through better indirect costs, experience, and trust-building. Third-party participation can strengthen CM/GC-Owner relationships by reinforcing transparency and objectivity and adding more expertise to the project. As an Owner’s confidence in their CM/GC rises, collaboration improves, operations run more efficiently, and the likelihood of repeat business increases. By seamlessly integrating third-party insights into their processes, CM/GCs can turn what might seem like an additional burden into a strategic advantage.
Incorporating third-party insights into construction management is more than just a safeguard—it is a strategic enhancement to project efficiency and collaboration. By fostering transparency, alleviating resource strain, and reinforcing trust between CM/GCs and Owners, third-party professionals play a pivotal role in driving successful project outcomes. As the industry continues to evolve, those who embrace these partnerships will not only mitigate risk but also create a more cohesive and high-performing project environment.
Completely Unrelated Trivia Treasure: A day on Venus is longer than a year. Venus rotates on its axis very slowly, taking approximately 243 Earth days to complete a rotation on its axis. A full revolution around the sun, however, takes only approximately 225 Earth days.
Maple Insight is a third-party Subcontract default risk assessment firm. We use objective modeling and construction experience to provide our clients unbiased, transparent, and quantified vulnerability assessments.