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How can a project manager save you money in the short and long term?

Updated: Feb 29

With the popularity of home renovation programmes on TV and online, you may believe that you could be the project manager for your own residential building projects, no matter how big or small. You may think that nobody else will have the same level of commitment to the project, understand exactly what you want, and, most importantly, save you a large chunk of money.


However, taking on the role of project manager on any home renovation is not for the faint hearted. It can lead to the project going over budget, over time, and incur costly mistakes, not to mention having a huge impact on your life interfering with your work, and causing undue stress on family relations.

 

Taking on a project manager can save you money both in the short and long term through various strategies that not only focus on cost reduction but also on enhancing the overall value and efficiency of your proper


Saving you money in the short term


 Budget Management: Project managers can create a detailed budget that estimates all project costs, including materials/labour, permits, fees and contingency funds. They help you stick to the budget, minimizing the risk of overspending.

 

Cost Estimation: Many have experience in cost estimation, which means they can often provide initial cost assessments for different renovation options without the use of a separate quantity surveyor, helping you make informed decisions that align with your budget.

 

Vendor Selection and Negotiation: Project managers are experienced in helping you choose the right consultants and contractors for your project. They can issue formal briefs to the consultants so you minimise claims for extra consultancy work later and can help you negotiate competitive prices with contractors, potentially saving you money on materials and labour.

 

Preventing Delays: Time is money in construction. Project managers are skilled at planning and scheduling to avoid delays and where delays occur, to implement action to recover the time. This minimises additional contractor costs and other expenses such as rental if you move to temporary accommodation during the build.



Quality Control: If appointed to do so, and your architect/designer is not appointed to continue throughout the build period, the project manager can monitor the quality of work throughout the project against by periodic visits. This reduces the likelihood of costly rework or repairs due to substandard materials or workmanship.

 

Scope Management: Project managers help control project scope by carefully assessing change requests and their impact on the budget before those changes are instructed. This prevents unnecessary and costly scope creep.

 

Risk Mitigation: Identifying potential risks early and developing strategies to mitigate them is a crucial part of a project manager's role. This helps prevent costly issues that can arise during renovations.

 

Permit and Regulatory Compliance: Staying compliant with planning permission and Building Regulation approvals is essential. During the works, project managers can check that planning approvals are being complied with and that relevant inspections are made by Building Control officers, preventing costly remedial work.

 

Effective Communication: Project managers facilitate clear and efficient communication between all stakeholders, reducing the risk of misunderstandings or disputes that can lead to added costs.




The longer term benefit of taking on a Project Manager


A project manager's role goes beyond just cost reduction during the renovation process. They aim to optimise the project for long-term benefits, ensuring that your investment pays off over time. Here are some of the longer term cost savings:

 

Proper Planning: Through careful planning and design, a project manager can help you make informed decisions about materials, fixtures, and finishes that are both durable and cost-effective. Choosing quality materials upfront can prevent the need for frequent replacements.

 

Energy Efficiency: A project manager can arrange for evaluation of options for energy-efficient upgrades, such as insulation, heat recovery systems, and renewable energy systems. These improvements can lead to ongoing savings on utility bills.

 

Maintenance Planning: They can develop a maintenance plan for your property. Regular maintenance helps prevent minor issues from turning into major and costly problems down the road.

 

Lifecycle Cost Analysis: On commercial projects, a project manager may conduct a lifecycle cost analysis to compare the long-term costs of different construction and renovation options. This includes considering factors like maintenance, energy efficiency, and durability.

 

Future-Proofing: They can incorporate design and construction elements that are adaptable to future needs. This can save you money when making future renovations or adjustments to the property.

 

Talking to the experts

Although you may be reluctant to pay someone to manage your project, it is likely that you will recoup most, if not all of, the cost of the project manager’s fee by the end of the build. A project manager is a necessity, not a luxury, and should save you stress and money.

 

If you are looking to start a project or undertake some renovations, talk to us. We are highly skilled project managers and have the knowledge and experience to plan, coordinate, and execute projects of all sizes effectively. Call us today : 07779 038 142.

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