The Journal of Construction Engineering & Management reported that a poorly managed construction project would have cost over-runs of between 11 and 15%. This figure is astounding because that means, due to poor management, more than one-tenth of a construction project is money flushed down the drain.
It means that on a project costing $1 million, between $110,000 and $150,000 of real money is thrown away because someone did not manage the project properly. This is where a Project Manager can help bring experience, knowledge and leadership to any phase of a project.
• Does my organization have a person with the time and skills necessary to manage a project properly while also handling their regular job?
• Does my organization have relationships with a network of proven contractors and vendors?
• Does my organization have a project management professional to be our trusted advocate from the very start all the way through to completion?
The organization building a new workspace is embarking on a large expenditure. Therefore, it deserves top spot on the priority list. The bottom line is return on investment. A trained PM maximizes your investment by promoting trusted project management principles before, during and after construction. These principles can apply to all phases and include activities such as, space selection due diligence, establishing a master schedule and budget, assisting with the selection of the design team, helping with contractor selection, conducting constructability reviews, change order review, billing review, and more. All these activities provide strategies to prevent costs from spiraling out of control.
By hiring a PM, you are getting a trusted advocate who will be looking out for your best interests. They will get to know you on a personal level and will offer alternative solutions to problems that can save you thousands of dollars. Further savings can be obtained with product selection and recommendation of alternate products to keep the budget in line with the baseline established at the start.
During the space selection and design & construction phases, a PM can prepare RFPs to select the best design team, contractor, subcontractors and vendors, and will monitor the work as it progresses. The PM verifies changes in scope are documented and approved prior to incorporation into the project. Weekly job site meetings are conducted and documented to ensure written and photographic records of the project are maintained. Lien release verification also provides greater protection for your organization.
Once construction is complete the PM can oversee installation of IT equipment and signage while the punch list is being completed. They can even organize and manage the relocation.
One benefit that is hard to quantify and hence never truly considered is the assured quality and peace of mind for the business. This assurance, coupled with a project on-budget and completed on-schedule, can be the difference between success and failure.
So, does hiring a PM add an extra layer of cost? Does hiring a financial consultant add a extra layer of cost? Does hiring a tax consultant add an extra layer of cost? If hiring a PM can save enough money to pay for their fees and still produce savings, it should be a no-brainer.