...to all projects that wouldn’t have to be redone for each," says Chuck Thomsen, CEO of 3D/International. He notes that the firm is beginning a study on "rotation" of construction processes that can be used from project to project.

But program management is still a misunderstood concept. A study released last month by House and Senate Democrats alleged conflicts of interest in Iraq reconstruction between program managers and contractors. "This report was disturbing because it shows a fundamental lack of understanding at the highest levels of government of how construction is procured and managed," says Bruce D’Agostino, executive director of the Construction Management Association of America, based in McLean, Va.

Ironically, much of the market for program management comes from the public sector, particularly school systems that are recipients of large bond issues. "I continue to be impressed by the level of confidence the public has in passing these bond issues," says James Moynihan, CEO of Heery International. Heery recently won a PM contract to manage a $300-million school renovation program in Denver, he says.

"Public agencies generally aren’t staffed to handle a sudden surge in capital spending authorizations," says Seibold. "Outsourcing to a program manager gives an agency the freedom to hire when it needs help and fire when the job is completed without having to worry about civil service problems."

Firms see less PM-CM activity among private-sector owners, who still tend to manage programs "in-house," says 3D/I’s Thomsen. But some corporate managers are looking outside. "The big financial institutions generally have small in-house program management staffs, and need assistance from outside firms," says URS’ Bishop.

In some cases, program managers can provide services above and beyond. As part of program management duties on the $300-million San Mateo, Calif., Community College expansion, Swinerton Management and Consulting not only helped to plan and develop 150 construction and renovation projects, it also helped draft implementing regulations for a state law authorizing design-build for community colleges, says Terry Bush, president of Swinerton Inc.’s CM-PM unit.

Heery was hired by the Monroe County, Fla., School District as PM to begin a needs assessment for the school’s capital improvement program, says Moynihan. "It’s our job to determine the size of the bond issue it will need to seek during the next round of referenda," he says.

There is one thing about CM and PM that brings a sense of satisfaction to many firms. "We hear about and see a lot of design work being assigned to overseas offices," says Moynihan. "I’ve yet to see whether such exporting of design work is cost-effective. But one thing I do know: Managing work is what Americans do best. And you can’t manage a project or a program from abroad."