Hi,
We live in Melb and am thinking of using a project manager to manage any future renovations on our future IPs.
Questions:
1 – Those who have used project managers, what is the whole process like?
2 – Do you simply get in touch with one, run through your ideas about the renovation process, the project manager confirms how much it will cost you to employ him/her, then the project manager go off sourcing for material and labour according to what you want and the budget that you have set?
I am sure it is not as simple as that. What are the pitfalls to look out for?
Ensure that they are registered with the state building authority (Building commission in Vic)?
Anything else?
Hope to get some insights here.
Thanks.
Daniel Lee
Daniel, using a pm is a great way to save yourself time, especially if you are time poor. You will need to ensure that the PM holds a builders licence (and that they will be engaging only licensed contractors).
They will most likely charge on a % of building cost rather than an hourly rate.
Get them to provide a cost plan/estimate with a maximum price. Find out what other work they have supervised, check references, check Vcat for any complaints lodged or judgements against them.
They should be able to discuss the best method of doing the work either as a lump sum (ie using a builder for a fixed price), cost plus, schedule of rates etc.
Hi, IP
Thanks for your input. That clears up a lot of doubt for me. I went to the Vic Building Commission website and checked out a couple of the licensed Builder Domestic Managers / Unlimited, but was not sure how to proceed or ask.
I read in SS that a license PM will charge between 20-30% on the total reno cost. We are currently looking at properties that are about an hour's drive from where we live, so we are not going to be there to open the door for tradies and close when they leave. Plus have to work, so time is an issue for us.
So, it is safe to say that one we have worked out what we want, the PM would be able to provide us with a cost plan / estimate.
What about sourcing for material and tradepersons? The PMs would know where to go to get them? If I stated that I was happy using 2nd hand material, would they go and get it for me?
Does anyone else have any suggestions?
Thanks.
It sounds like it may be more efficient for you to engage a builder after having gone to tender, that way the builder becomes responsible for all site issues. I have yet to see a PM who gets out of bed before 7.00am. If the PM is charging 30% that is an absolute joke!!! Builders may charge 10-15% and it may pay to do a schedule of rates contract on that basis.
Hi, IP
Do you mean:
1 – We get the quotes for the work we want done, and decide on the best ones;
2 – Source all the 2nd hand material we want the tradies to use, while allowing them to purchase brand new material if needed;
3 – then simply hire a PM to manage the process, while giving him the authority to contract other licensed tradies if needed?
4 – Agree on all these details on what the PM has to do on a contract?Initially, we though of simply getting a PM to do all the organising of labour and sourcing of material. Is that also a viable option, although a more expensive one?
Clearly, if we do more of the work, it will be cheaper for us. However, we are only free on the weekends, hence the 'get the PM to do most of the work' idea while we managed overall 'strategic direction'.
Regards
Daniel
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