It’s common for condo boards to approve larger jobs that exceed the standard maintenance and repair typically handled by a property manager, such as a renovation, an addition, or other new construction project. However, once your condo board or HOA is ready to start the conversation or before you kickstart the project, you’ll want to consider what options best fit the stated goals. Many HOAs believe hiring a construction manager is the best option, but it makes sense to inquire with your property manager about suggested construction management practices, partners, costs, and services. Why? Read on to find out.
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Five Reasons to Involve Your Property Manager in Construction Management Activities
Involving your property manager in plans for larger construction projects is important for various reasons. To start, your property management company might have specific rules about how construction projects get done, including requirements that dictate everything from hours of operation to approved construction management partners. Your property management company might even provide construction or project management services, which could:
- Save your HOA money by not paying a construction manager salary
- Streamline the construction management project
- Ease the stresses of working with another service provider should you hire a construction project manager or multiple contractors if you don’t
- Ensure proper vetting of the construction team and other contractors
- Take over responsibility and liability for the project
Using an Experienced Industry Professional to Manage Your Construction Project
Additionally, when your property management team assists with HOA-planned construction projects, your board doesn’t have to be responsible for leading the project or selecting a project manager. Having your property manager steer the project may save your HOA even more money by letting a professional with experience in construction management and contractor negotiations take the lead.
A skilled construction project manager is crucial in overseeing all aspects of a construction project, ensuring that it is completed on time, within budget, and adhering to quality and safety standards. Typical responsibilities that an experienced construction management professional can contribute to a successful project outcome include:
- Planning project timelines and schedules: The construction project manager develops a detailed project plan, outlining the project’s milestones, key deliverables, and deadlines. This involves determining the sequence of tasks, allocating resources, and ensuring the project’s goals are attainable within the given time frame.
- Keeping project information organized: The project manager is responsible for maintaining accurate and up-to-date records of all project-related information, including contracts, invoices, and progress reports. They also use project management software to track progress and facilitate team communication.
- Negotiating contracts with vendors and purchasing materials: The project manager negotiates contracts with suppliers and vendors, ensuring the best possible terms for the project. Additionally, the manager oversees the procurement of materials, ensuring they are of the right quality and delivered on time to avoid delays.
- Managing subcontractors and creating employee schedules: The project manager coordinates and manages the work of subcontractors, ensuring each completes their tasks on time and to the required standards. A manager also creates and maintains employee schedules, guaranteeing adequate staffing levels and efficient allocation of resources.
- Leading construction tasks, following blueprints, and reviewing all aspects of the project for quality and stability: The project manager oversees the execution of construction tasks, ensuring the work is completed according to the project’s blueprints and specifications and in the appropriate sequence. They also conduct regular inspections to ensure quality and stability, identifying and addressing any issues that may arise.
- Keeping track of expenses and budgetary impact: The project manager closely monitors project expenses, ensuring they stay within the allocated budget. They also identify potential cost overruns and implement cost-saving measures to mitigate financial risks.
- Liaising with clients and other professionals: The project manager serves as the primary point of contact for clients, providing regular updates on work progress and addressing any concerns that may arise. They also liaise with professionals in other industries, such as architects, engineers, and regulatory authorities, to ensure smooth project execution.
- Inspecting documents, including designs, contracts, and other files: The project manager reviews critical documents to confirm they are accurate, complete, and compliant with relevant regulations and industry standards.
- Time and cost management: The project manager manages the project’s budget and schedule, identifying potential risks and implementing mitigation strategies.
- Quality management and expectation communication: The project manager ensures that all work meets the desired quality standards and communicates these expectations to the project team.
- Delivering permits, warranties, and manuals: The manager obtains the necessary permits and approvals for the project and ensures the client receives all relevant manuals and warranties upon project completion.
- Safety management of the project and construction site: The project manager oversees site safety, implementing and enforcing safety policies and procedures to minimize accidents and provide a safe working environment for all team members.
- Team management and tracking productivity: The project manager leads and manages the project team, fostering a collaborative and productive work environment. Doing so involves tracking team productivity and performance and providing feedback and support to help team members achieve their full potential.
Will the Property Manager also Act as a General Contractor?
When discussing construction management, sometimes HOAs get bogged down comparing a commercial construction manager to a residential construction manager. However, it’s far more important to consider the differences between general contractors and construction managers. Here’s why.
General contractors typically manage all subcontractors and suppliers, taking charge of the “big picture” work of the project and the day-to-day minutiae. Construction management can function similarly, but it doesn’t have to. One of the pros and cons of being a construction manager is that the individual may oversee the nitty-gritty of the overall schedule. However, construction managers may also serve in a more advisory capacity, offering advice and coordinating with architects, interior designers, and the like —leaving the details to you, the HOA rep.
As you may imagine, such an arrangement with your existing property management company can cause problems, particularly if you expect your property manager to handle the daily construction-related matters. Before you dive in, ask yourself these questions:
- Will the project require challenging logistical and personnel management? If so, is the HOA willing to assume these duties?
- Is my property manager willing (and capable) to serve both as a construction manager and a general contractor?
- Does the HOA representative have a background in construction, or is construction savvy?
- Does the HOA understand the workflow and materials flow necessary for the successful completion of the project?
The answers to these questions will help you define your role in the project and what role your property manager will need to assume to best support you.
What Your Property Manager Can Do Post-Construction
Regardless of expertise, many standard post-construction tasks should come naturally to a property manager. Some of these common steps include:
- A walk-through of the built-out space
- Testing any newly installed systems to ensure that they work properly
- Training occupants on the proper use of the new systems
- Communicating move-in dates
Other standard post-construction tasks, e.g., terminating supplier contracts, may fall outside the typical duties of a property manager. That’s why it’s critical to determine exactly what kind of services your property management company is willing and able to provide.
Additional Benefits of Using Your Property Manager for Construction Management
If your property management firm provides construction management services, your HOA should consider themselves lucky. When such services are available, your condo board or HOA is guaranteed to have someone in charge who supports the building and the condo owners’ best interests.
Additional benefits and cost savings that can result from working with your property manager on HOA construction projects include:
- Intimate knowledge of existing condo building rules and regulations
- Research and analysis of project options, costs, materials and suppliers
- Identification of project requirements and specifications
- More cost-effective pricing from years of experience and relationships with vendors
- Active management of the available budget
- Daily communication with various contractors and knowledge of on-premises workers
If your condo board is considering hiring a construction manager for an upcoming project, it’s best to involve your property manager in the conversation. Even if there is an additional charge for using your property manager, you should consider the added value of having someone fulfill the construction manager role who’s committed to your satisfaction. Cutting corners in any way—including having a board member manage the project—could backfire, costing more time, money and headaches to rectify subpar project outcomes.
If you need a manager to drive a successful construction project, look no further than GNP Realty. In addition to facilitating commercial and residential sales and leasing, we specialize in commercial construction consulting and general contracting. Our expert team can conduct feasibility analyses and perform necessary due diligence to ensure your project will succeed. In addition to helping our clients clarify their goals, estimate budgets, and establish construction schedules, we select a construction team that includes subcontractors and other professionals (e.g., architects and engineers). Our family of companies can manage every aspect of the process, and we’ve done so throughout the Chicagoland area for decades. Contact us today to learn how we can help you.
