If your organisation is planning a property development, new building, refurbishment or major construction project, the question should not simply be whether someone in your organisation can manage it.
The better question is:
“Do we have the experience, capacity and time to manage the project properly?”
When do you need a project manager?
The need for project management generally increases as the project becomes more complex. Consider appointing a project manager if your project involves several of the following:
- Significant capital expenditure
- Multiple consultants
- Complex design
- Planning or consenting requirements
- Difficult site conditions
- External funding
- A competitive tender process
- A major construction contract
- Multiple stakeholders
- Tight programme requirements
- Significant operational constraints
- A board or governance reporting requirement
- A project team that has limited construction experience
You may also need a project manager simply because your internal team is already too busy.
Capacity is a project risk too.
“We have an architect and a builder. Why do we need a project manager?”
This is one of the most common questions.
The architect is responsible for design.
The contractor is responsible for construction.
Neither is necessarily responsible for managing the entire project from the client's perspective.
Someone still needs to coordinate the overall project. That can include:
- Client requirements
- Budget
- Programme
- Design
- Procurement
- Contractor selection
- Risk
- Commercial decisions
- Stakeholder communication
- Governance
- Handover
A client-side project manager sits between these moving parts and keeps the overall project aligned with the client's objectives.
What happens when there is no project manager?
Sometimes nothing.
Sometimes everything.
Without clear project leadership, responsibilities can become fragmented.
A design issue may sit with the consultant.
A cost issue may sit with the quantity surveyor.
A programme issue may sit with the contractor.
A consenting issue may sit with the council.
And the client can end up sitting in the middle trying to work out who is actually responsible for bringing everything together.
The problem is rarely that nobody is doing their job. The problem is that someone needs to manage the whole project.
Should you employ a project manager or outsource the role?
For organisations delivering projects regularly, an internal property or project team can make sense.
For organisations with occasional projects, an external project management firm can provide a more flexible solution. An external team can bring:
- Experienced project managers
- Construction knowledge
- Procurement capability
- Commercial awareness
- Contract experience
- Established processes
- Independent advice
- Additional capacity when required
You don't necessarily need to employ a permanent project team simply because you have a project to deliver.
When should the project manager be appointed?
Earlier than many clients think.
The greatest opportunity to influence project cost and risk is generally before construction begins.
A project manager appointed during feasibility can help shape:
- Scope
- Budget
- Programme
- Procurement strategy
- Consultant appointments
- Design development
- Risk management
Bringing someone in after the project is already in trouble is possible. It is simply more expensive.
A simple test
Ask yourself these five questions:
- Have we delivered a project of this size before?
- Do we understand construction procurement and contracts?
- Do we have enough time to manage the project properly?
- Do we have the technical capability to challenge our consultants and contractor?
- Can we confidently report the project's cost, programme and risks to our board or stakeholders?
If the answer to several of these is no, external project management may be worth considering.
The objective isn't to add another consultant
Good project management should reduce complexity, not add to it.
The objective is to give the client a capable person or team who can coordinate the project, identify problems early, challenge assumptions and keep decisions moving.