Sunday, 31 December 2023

Thinking of Building Your Dream Home? Hiring a Project Manager May Work Better over a Building Contractor

Written by: Angelica Bilangel

In a construction project, priorities and direction must be set in order to achieve success. One good way to do this is Project Management, an effective strategy used for organising construction projects. Being one of the services that Marblaze offers, this blog post will explore what Project Management is, and what makes it so important.

What is Project Management?

Project Management is simply the management, organisation and direction of a construction project. This method of managing how a project is done has the main goal of completing a construction project efficiently, under budget, and by its deadline. There are multiple aspects a construction project is concerned with, including budget, hiring the right people, schedule, managing construction, and liaising with other parties (e.g. owner, engineers, admins). It is the responsibility of the Project Manager to ensure all these elements are in place.

Project Management Vs Standard Building Contract

While Project Management is one method of developing construction projects, there is another method using Standard Building Contract. This includes a signed legal document which contains a set of guidelines for all parties involved in the project. Once signed, all parties are obligated to follow the contract, and if a party breaches it, the other can sue. 

Differently from project management, building contracts prioritise the management of the contract between parties over the project itself. The goal with building contracts is to achieve the satisfaction of parties involved over the successful completion of a project. In this situation, clients are only required to sign a contract and guarantee that they can pay the price for the building. 

Advantages of Project Management

While the client has a very simple role in projects using standard building contracts, there are a few issues included with a client’s lack of involvement. One is the little communication between the client and contractor. 

For instance, if the client expects the building to turn out a certain way, there is a possibility that the building turns out to be not as the client had expected. For instance,  if the client requested yellow walls, the result is instead dirty white. In standard building contracts, there may also be unexpected hidden fees involved that the client has to pay in addition to what they expected to pay. 

It is possible for the client to file a complaint or even sue the contractor for not satisfying their needs, but this is all too much work. 

Unlike standard building contracts, with project management, clients are an active part of the building process. Since the priority of project management is the actual building itself, the end result of the building is likely to match the client’s expectations. 

Another issue is the costs. Oftentimes, the client will not have enough of their own money to cover funds for their project, so they will have to borrow money from the bank. Included in this process is interest, which will likely cost more than the building they plan to build. 

In project management, costs are managed in a way that is compatible with the client’s income. If the client requires extra money for construction, they can request a small loan to aid in the funds, where the interest that builds won’t impact the client’s budget. It is also possible to pause the construction at any time to suit the client’s needs.

So, what now?

Are you interested in building your dream home? With Marblaze’s project management services, we can help you achieve that goal. We have a reliable team of engineers, a project coordinator, business manager, and admin support to help you. We are looking forward to working with you.




References:

Ariel Bilangel

https://archdesk.com/blog/construction-project-management-guide/ 

https://www.domain.com.au/guides/how-building-contracts-work-929198/ 

https://www.ecosys.net/knowledge/construction-project-management/ 

https://www.geeksforgeeks.org/difference-between-project-management-and-contract-management/

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