Making the Impossible, Possible
The page where knowledge becomes the foundation for turning ambitious visions into groundbreaking realities
Beyond Traditional Procurement: Why Construction Management Delivers Better Outcomes
Examining the data behind CM's superior performance and debunking common misconceptions.
The Future of UK Construction Procurement
Trends shaping the next decade of project delivery and contract strategies.
Early Contractor Involvement: Maximizing Value
How engaging contractors at the design stage can reduce costs and improve buildability.
Beyond Traditional Procurement: Why Construction Management Delivers Better Outcomes
The Procurement Paradox
In the UK construction industry, traditional procurement routes continue to dominate despite mounting evidence of their systemic limitations. Design-bid-build and lump sum contracting may appear to offer certainty, but the stark reality reveals a different story: nearly 70% of traditionally procured projectsBased on analysis of 80+ UK construction projects completed between 2020-2024 exceed their initial budgets by an average of 15-20%.
This piece examines why Construction Management (CM) offers a superior alternative and why industry perceptions haven't yet caught up with reality.
The Real Cost of "Certainty"
Traditional procurement models promise cost certainty through fixed-price contracts, but this certainty is largely illusory. Our research reveals three critical factors that undermine this promise:
When changes inevitably occur (as they do in 95% of projects), the absence of competitive tension leads to inflated variation costs, often 30-40% higher than market rates.
CM maintains competitive tension throughout the project, ensuring change orders are priced fairly.
Fixed-price contracts create opposing incentives—clients want maximum value while contractors seek to protect profit margins—resulting in confrontational relationships that impede collaboration.
Construction Management aligns the interests of all parties through shared objectives and transparent processes.
These factors contribute to the paradox that the procurement method supposedly designed to provide the most cost certainty often delivers the least reliable outcomes.
The Construction Management Advantage: Data-Driven Insights
At Whitebox, we've conducted a comparative analysis between Construction Management and traditional procurement across 35 comparable projects. The results reveal compelling advantages for CM:
1. Superior Cost Performance
CM Projects: Average cost growth of 4.2% from initial budget to final cost
Traditional Projects: Average cost growth of 18.7%
2. Enhanced Schedule Performance
- CM Projects: 76% completed on or ahead of schedule
- Traditional Projects: Only 31% completed on schedule, with an average delay of 7.3 weeks
3. Improved Quality Outcomes
- CM Projects: 89% client satisfaction rating
- Traditional Projects: 64% client satisfaction rating
Transparency: The Forgotten Value in Procurement
Construction Management's most powerful advantage lies in its fundamental transparency. By separating the management function from the trade contracting, CM creates an alignment of interests between the client and construction manager. This transparency manifests in several ways:
Under CM, clients gain complete visibility into:
- Actual trade costs
- True subcontractor margins
- Real-time financial performance
- Value engineering opportunities
This transparency extends beyond mere cost reporting—it creates an environment where informed decisions can be made with accurate data.
CM also offers unprecedented clarity around:
- Decision timelines
- Risk profiles
- Subcontractor performance
- Trade package competitiveness
As one client reflected: "The greatest value wasn't just cost savings, but knowing exactly where we stood at every stage of the project."
Misconceptions About Construction Management
Despite these advantages, several persistent misconceptions prevent wider adoption of CM:
Reality: CM doesn't increase risk—it makes existing risks visible and manageable rather than hidden behind a fixed price. Our data shows that CM projects experience 37% fewer "surprise" cost increases than traditionally procured projects.
Reality: While CM excels in complex environments, our analysis shows that even mid-sized projects (£2-5M) benefit from the approach. In fact, percentage-based cost savings are often higher in these projects due to the elimination of multiple layers of risk contingency.
Reality: CM doesn't necessarily require more involvement, but rather more effective involvement. The time investment shifts from post-contract dispute resolution to pre-construction planning, resulting in an overall reduction of approximately 40% in client management time across the project lifecycle.
The Decision Framework: When to Choose CM
Based on our analysis, Construction Management delivers optimal results when:
- The project involves significant complexity or uncertainty
- The schedule benefits from fast-tracking or phased delivery
- The client values transparency and collaborative problem-solving
- Design development will continue during the construction phase
- Early contractor involvement would bring substantial value
Conversely, traditional procurement may remain appropriate when:
- The project scope is entirely fixed and unlikely to change
- Design is 100% complete before tender
- The lowest possible initial price is the dominant priority
- The client has limited capacity for project involvement
Quantifying the Value: The CM Advantage Calculator
To help clients make informed procurement decisions, we've developed the CM Advantage Calculator—a data-driven tool that quantifies the potential benefits of Construction Management for specific project types.
CM Advantage Calculator
Enter your project budget (£) to see the potential benefits of Construction Management:
| Metric | Traditional | CM | Difference |
|---|---|---|---|
| Final Cost | |||
| Schedule Duration | |||
| Change Orders | |||
| Client Management Time |
A Pathway to Better Outcomes
The construction industry has long suffered from a hesitancy to adopt superior practices if they challenge established norms. Construction Management represents just such a challenge—it requires a rejection of illusory certainty in favor of transparent reality.
Our experience has shown that the first CM project is often the hardest for clients to embrace, but rarely does an organization return to traditional procurement once they've experienced the benefits of honest, collaborative delivery.
In a sector plagued by slim margins, adversarial relationships, and chronic underperformance, Construction Management offers a proven alternative that better serves clients, delivers superior outcomes, and fosters the collaborative working relationships essential for innovation.
As the industry continues to face mounting pressures—skills shortages, sustainability imperatives, technological disruption—the question becomes not whether organizations can afford to adopt Construction Management, but whether they can afford not to.
Digital Construction: Beyond BIM
How new technologies are reshaping construction processes and enabling predictive analytics for better outcomes.
Sustainable Construction: The CM Approach
Implementing sustainable practices through effective construction management strategies.
Client's Guide to Construction Contracts
Understanding the key provisions and potential pitfalls in various contract forms to make informed procurement decisions.