Who should project manage my build?

Who should project manage my build?

 

This blog ‘who should project manage by build?’ explores the decision who will manage my build. Also how the building project will be managed. It is a critical decision and there are clearly a number of choices. As the property owner you have the final say, but as independent project managers, we think you should carefully explore all options.

Get it right from the start.

At the start of any build you will rightly be concerned about getting the right team for your build. You will want you want a quality build. One delivered on time and within the budget that you set.

An independent survey commissioned was by CLPM focusing on homeowners who had completed build projects in South Bucks and Herts. It showed that 90% of people overspent on their home renovations, the average overspend was by 20%.

Of homeowners responding:-

• 50% – managed the build themselves
• 38% – build managed by the builder
• 9% – build managed by the architect or designer

It would seem that the usual methods of managing a build had not really delivered for the home owner.

The question is will investing in a building project manager and therefore having to pay project management fees be a good use of your money? Also, what are the differences between this route and using the architect or builder to project manage for you?

Lets Explore!

Independence

The function of a project manager is to be a more technically experienced version of the client. So you buy a service with many years of construction engineering experience. The building project manager is the only part of the design and build team who is truly independent of the process. Their sole priority is your requirements. CLPM see our role as building project managers as:

• to protect client interests (both aspirational in terms of build and financial in terms of budget control)
• ensure that clients have all of the information that they need to make good decisions in what is a complex build environment
• to have the technical knowledge to challenge either the designer or builder should the client feel that they are being channelled down a path at variance from their original requirements

CLPM work with a wide variety of architects and designers.

Their reason for partnering with us is to preserve independence in the process and their lack of time to be able to commit to the site management. This is so critical once the build has begun.

Some also feel that there is an inherent conflict of interest between their role as architect and Contract Administrator.

The main architectural function is one of design. Some practices are established with this as their main service offering. Project management can be done and is offered by many but it is secondary to design work. The co-ordination requirements of a project are wide and varied and some designers find that they do not always have the time for this critical function. Especially if they have design work outstanding.

Contract Administration

The main function of the builder is to build in the most time and cost effective manner for them. At different stages of the build a client will be asked to make technical decisions. They might be offered option A or option B. However, there might also be options C, D and E available. If they do not have sufficient technical knowledge about the build process, they will not be aware that other choices exist. Using a Project manager can provide the possibilities or options A – Z and they will ask further questions about alternatives, and advise on what is best for your situation.

Additionally, builders may not communicate the future implications of decisions client’s make sufficiently well for them to see the whole picture. This is not done deliberately but what may be an obvious “consequence” to a builder with years of experience is not always clear to the client with very limited experience. All decisions made will have knock on implications further in the project. Clients might find that ill informed decisions made early on in the process restrict their future choices.

To appoint an independent contract administrator will protect the interests of both you as the property owner and the contractor. The CLPM Quantity Surveying team will ensure the most suitable contract is in place, and the construction project management team will administer that contract.

 

Working with CLPM

The CLPM role in this case will fully appraise the client of the “bigger picture” so that they make decisions based on clear information. To a certain extent our job is also translating “builder speak” into a language so that clients understand exactly what they are being asked to decide.

A major homeowner benefit of having the building project management function separate to the architect or builder is the daily management of the project. There will be decisions to make and changes along the course of the project. CLPM projects are run in a way where changes are noted, costed and agreed as they occur. This ensures that there are no issues with bills for “extras” which have not been clearly agreed at the end of the job. With so many activities happening all at once, if change is not rigorously documented the budget can easily start to slip.

Cost

Using a project manager will save a client money. At CLPM, we look for the cost of our fees to be covered by the savings that are made through a strong procurement process.

Many architects define “project management” as management of one main builder. They are unlikely to want to manage a variety of different suppliers.

However, a more cost effective way for a project to be set up may be to buy high cost items. Such as glazing, kitchen, bathrooms etc directly from suppliers. In this case, CLPM would help the client source and price those items and therefore our function is to manage those varied parties in terms of supply, delivery, cost etc.

Creating more “packages” in the build does produce dramatic cost savings but those parties all need to be managed.

A building project management company will manage those varied relationships. An architectural practice may not. If the builder is willing to manage those parties, he will almost certainly charge a fee. This could generally be about 10% of the purchase cost of the items. At CLPM we cost projects in a bespoke way for management time not a percentage of the build. Our job is to save you money and manage the budget. Removing some of the purchasing from a builder can save the client thousands of pounds in the long run.

Considering using either an architect or a builder to project manage? It is essential to get clarity on their cost for doing so and what services are provided for that fee.

As a general rule architectural practices will charge between 8 – 12% of build cost for design fees. They  may also do the same for PM fees. Builders who fulfil the PM function charge 10% of build cost (plus other high cost purchase items). CLPM fees are in the region of 5% of build cost. We provide a fee proposal once the client has a finalised design. This will not change unless the client elects to make significant changes to the design which impacts on the time that we are managing the project.

Time

In addition to cost, the function of a building project manager is to save time in the build process. There could be a period of time where the client will not be able to live in the property as it will have been demolished. To minimise the time rented accommodation is required, a robust project programme is essential. This way everyone knows who is doing what and when. Activities can run simultaneously to prevent the project from coming to a halt.

Central to the project management function the CLPM role is to provide support that allows the designer and builder to fulfil their areas of expertise. The project manager can take on board the “detail” activities that are critical to allow the progress of the build. These details can be easily overlooked but can be extremely detrimental to the progress of the build if not managed effectively and in a timely manner.

Choosing the correct build team is critical to the success of your building project. This must be in place before making any final decisions. Do get a number of different parties to quote for the building project management. It could be the best decision you ever make.

 

Want to know how we can help you? Give us a call now on 01923 896550 or email us info@cl-pm.com or contact us here.