Why Hire a 3rd Party Project Manager?
A project management professional can help the owner achieve a higher quality product in a shorter timeframe for the lowest possible cost. At the same time, a project management professional can reduce the owner's level of stress and mitigate risk, helping to assure that the owner's goals and objectives are met.
A project management professional can add great value early in the project. For example, opportunities exist to reduce project costs by minimizing square footage through workplace planning and programming, selecting the best project delivery method, developing, managing and maintaining a comprehensive budget and schedule, identifying lower cost design solutions and negotiating optimum contract terms for all owner contracts.
As a project becomes more complicated, costly and constrained, the benefit realized by employing a professional project manager increases.
An owner should carefully consider its in-house resources:
Many companies turn to outside consultants to manage projects of all sizes. According to one, “Third party Project Management allows our management to focus on our core business deliverables while relying on expert project management consultants for tactical delivery. External consultants bring their experiences to enhance this delivery, we take advantage of the skills of consultants in delivering the best-in-class projects."
In every project, there is a risk of schedule and cost overrun. Effective project management helps the owner manage that risk. Experienced project managers will put processes in place to avoid expensive claims, to evaluate and control risk, and to ensure the project design and construction teams perform per their respective contract terms and conditions.
When contracting a project manager for your project, it is important to ensure that the relationship between the owner, design professionals and the general contractor are thoroughly set out and incorporated into all contracts. Standard contracts provided by associations such as the AIA and AGC may not make adequate provision for the role of a project manager.