Should your block call in a project manager?

The appointment of a Project Manager for major building contracts has now been accepted as standard practice except in the Property Management Sector. Appointing a Project Manager is an extra cost and hard to justify to the Lessees. Managing Agents are expected to be a “jack of all trades” and be able to take on anything property related. Considering that Construction Project Management is recognised as a specialist role, requiring a significant amount of training and expertise, it seems unfair to expect a Managing Agent to have the necessary skills to take on and successfully manage a major project.

A trained Project Manager will have a deeper understanding of planning law, building regulations, procurement processes, programming and most importantly, compiling a Building Contract. It is rare to see a formal building contract in the Property Management Sector, most contracts being placed under the Managing Agents standard terms and conditions and based on a simple quote from a building contractor, something that simply would not be allowed in any other sector. This is a risky business. Something as simple as not defining the contractors working hours can result in additional costs. As an example, if the contractor’s price is based on working 7 days a week, but it transpires that the Lessees or the Local Authority will only let them work 5 days a week, the contractor will either have to increase labour to meet the programme or extend the programme – who picks up the tab? Without proper contract documentation it is likely to be the lessees.