This article will discuss the benefits of using a project manager in property development, sourced from expert property development consultants. Furthermore, it will share five proven benefits of using a project manager in property development, which may be valuable to your small business. Keep reading to find out more!
What is a Project in Property Development
In the property development space, a project is the entire process of developing real estate, from start to finish. There are lots of moving parts to this process.
It begins with pre-purchase diligence, which includes identifying a potential site. This requires lots of knowledge and experience as not all sites are equal.
Further steps include land surveying, town planning, drafting designs and the construction of new properties.
What Does A Project Manager in Property Development Do?
In this context, a project manager oversees the entire project. It’s their job to assemble a project team. They will assign people roles and responsibilities, and keep everyone on track.
They are also responsible for following up with the various different professionals involved in the project.
Furthermore, they must keep a project on time and running to budget. This is highly important because in property development, every day has a dollar value attached. Delays cost money, and the aim of the game is to make a profit.
As well as keeping all the people working on the project on track, a project manager also brings their own expertise.
Projects are complex undertakings, with lots of moving parts. The project manager understands all of these, and their relation to each other. They can spot when something is going to go wrong, usually before it does. They can then jump in and mitigate the risk. This is important, because property development is a high risk, high reward investment. With the right approach, the risks are handled and the reward follows at the project’s end.
The Benefits of Using a Project Manager
Experience and Knowledge
A residential property development project consists of lots of moving parts, with numerous relevant parties, contractors, suppliers and professionals. Holding them to account and working to deadlines can be difficult.
Managing people in this sector takes experience in the field and a good reputation. A project manager’s knowledge, experience and skill makes them worth their weight in gold in this game.
Increased Profit and Value
An experienced project manager or project management firm can deliver greater returns.
Project managers often have ongoing professional relationships with suppliers. This means access to wholesale, or even below wholesale, rates for goods. These savings are important, especially as builds can cost into the hundreds of thousands of dollars.
There is also added value in terms of expert advice and existing relationships with other professionals including architects, sales agents, surveyors and conveyancers. This creates economies of scale and cost savings.
Risk Mitigation
Property development is a high risk, high reward venture. A project manager has the required knowledge and experience to mitigate danger. They know precisely what to do at each step of the project, as well as how to reduce risk factors.
Time Management
A professional project manager can usually complete a project faster than an amateur, due to having the right networks, resources and connections. They are able to draw on established relationships with builders, suppliers, and other professionals. This can mean the difference between a delayed project and one that delivers on time.
A project manager knows their timelines, and what should occur within each period.
The Difference Between Project Management and Project Consultants
A project consultant or project consultancy business tends to provide advice. Expert advice, yes, but still advice.
You won’t find a project consultant managing an entire project, start to finish.
On the other hand, a project manager or project management company oversees the entire project. They can also provide advice, but their focus is on delivering the project.
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