Impact Group’s team keeps its finger on the pulse of what’s happening in the NSW construction industry. We have noticed a lot of projects being paused, or put on hold, over the past 12 months. If a project is fortunate enough to stack-up financially then it is imperative that all the other “pieces in the puzzle” allow it to proceed seamlessly.
Frequently, everything will be in place for a project to be underway but negotiations or disputes between key stakeholders will throw a spanner in the works.
Time lost is money lost, which is why we highly recommend projects of all sizes engage the support of a project manager well before construction commences – your technical conduit to ensuring the project is well-designed, the building contract is watertight and then it is administered well.
Why hire a Project Manager to oversee construction and development?
Your Project Manager steps in as a coordinator, overseeing the many moving parts of a development. A competent and thorough ‘PM’, as they are called, will help achieve stakeholder expectations and guide the project to meet all time, cost and quality targets. To get the job done well, they will have exceptional construction knowledge, stakeholder management skills and reporting capabilities. They draw from experience to foresee and prevent problems.
Here are some of the things a PM will oversee when they step into their role:
– Due diligence
A Project Manager will examine all the project goals and expectations and align them with forecast timelines and costs. They will ask difficult questions upfront and examine data and information to identify project risks, coordinate resources and create a realistic budget. Once designs are complete, they will also map out the project’s deliverables and put together a timeline for contractors and other stakeholders to follow.
– Tender
A Project Manager will drive the tender process by issuing a call for proposals and subsequently interviewing the contractors who submit tenders. It’s not all about price. Before selecting a contractor, the PM will consider the contractor’s project experience, resource capability, financial capacity, proposed programme and construction methodology. This will ensure they engage a suitably qualified and experienced provider.
As with the due diligence phase, the right analysis and recommendations at this time will prevent issues as the project progresses.
– Contracts
Agreements made with builders and suppliers need to be watertight before construction starts. When a developer engages a Project Manager, they will consider the developer’s best interests and incorporate these in the terms of the contract.
The more consideration and detail the PM puts into the contract process before agreements are signed, the less likelihood there will be disputes and setbacks. For one thing, a dispute resolution clause should be included in a contract. This will clarify how a problem will be resolved and will reduce dispute-related delays.
– Project-team communication
Once works commence, a PM acts as the communication conduit between the developer and the builder, ensuring each party has what it needs, as it needs it. They will schedule regular meetings between both parties to ensure everyone has an appropriate forum to address concerns and answer questions.
The PM will also ensure each member of the project team is doing what’s expected of them, at the right time, to help the project stay on schedule.
– Overseeing progress
The Project Manager’s role is to ensure the developer’s vision is realised. By keeping track of what needs to be done and holding people accountable, this professional will deliver a positive outcome.
If progress is hindered by a contract dispute or a provider who isn’t delivering, the Project Manager will step in to resolve the situation. They will represent the developer’s best interests and uphold the agreed terms of the contract.
– Finance
A Project Manager will also keep an eye on costs by regularly reviewing the project cost plan and notifying the developer if the budget is set to be adversely affected. They’ll uncover red flags early so mitigation strategies can be applied.
– Safety and risk management
Every construction project should have safety as a priority. A PM will play a role in ensuring the contractor is maintaining a safe working environment. Compliance comes into play as well. Building sites have numerous requirements and a PM will be proactive to ensure these are all met as required.
Read more: The #1 priority for construction teams.
– How to choose the right Project Manager for construction
The sixth annual CRUX insight report analysed over 1,800 projects across 106 countries, with a total value of $2.247 trillion. It found that disputed costs amounted to more than a third of project CAPEX (33.6%), on average. Three design-related causes – inaccurate, incomplete and late designs – afflicted a greater proportion of projects (44.8%) than scope change (38.8%).
With this in mind, whether you’re developing a retirement living or aged care product, a school or a new residential building, you need a Project Manager who will step in as the ‘coach’, taking control of planning and strategy and overseeing all the players.
When seeking a project management firm, look for an experienced business that has a track record of success.
Project Managers from Impact Group
We only employ highly-skilled Project Managers for projects and developments up-and-down the east coast of Australia. Our specialists are hand-picked for their integrity, technical prowess and excellent communication skills. They go above and beyond to ensure developers get the best outcome whilst maintaining high-quality standards.
Contact Impact Group to discuss our Project Management services. Email Alyssa Lanning on alyssal@impactgroup.com.au or phone 1300 630 063 for a no-obligation discussion.
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