Construction and Cost Management Services
How our project management service can help -
Frequently Asked Questions
"Won't my building contractor
deal with all the issues?"
This should be the case and in a perfect world this would
be the right solution. However, what your building contractor will also
have to do is manage his staff around the other projects he is running,
cover his corporate overheads and make use of his direct labour force
that may not necessarily be specialised in the work to be carried out.
There may also be a lack of competitive pricing within
the overall quotation on the basis that some elements of work may be
good value (ie those parts the builder can complete with his own workforce),
but others may be uncompetitive as a result of him having to engage
specialist subcontractors with the client having to pay for profit on
top of profit.
"Can't I ask my architect to deal
with all these issues?"
For an additional fee, this is also true - but our experience
is that an architect will want to engage a single contractor to carry
out all the works to simplify the communication channels and to limit
the amount of direct involvement with the day to day running of the
project. This is entirely reasonable and is the prudent approach. But
what this will not give the client is the benefit of being able to "shop
around" for the best prices on individual sections of work, materials
and skills. The service from Woodside Developments can also include
the management of materials to avoid margins being applied by builders
to the materials they are utilising. This can vary between 15 to 25%
mark up of the materials cost and when one considers that materials
costs represent an average of 35% of total build costs, simple mathematics
tells us that 7 or 8% of the total project cost can be saved by having
us manage your contract as "labour only".
"What service do you offer?"
We offer independent advice which allows competitive
quotations to be obtained for all aspects of the work - thus ensuring
the best possible end price, together with the management of all the
subcontractors employed to deliver against those quotations - i.e. someone
who is working for the clients' best interests rather than the builders.
Our project management service aims to deliver exactly this - Independent
advice on key questions such as:
- What is best for you?
- What are the full implications of that change of
mind?
- How can we work around this change of circumstances?
- How can we control costs from start to finish?
- Is this quotation best value?
- Should that invoice be paid?
- Where can we make savings?
We act as your representative throughout the project
- looking out for your best interests.
"What does a successful building
project look like?"
Typically the most important aspects of any building
project are:
- Ensuring it is completed on time
- Ensuring it is completed on budget.
- Minimising disturbance
- Being delighted with the finished article
It is a sad fact of life that current experience is that
none of the above is achievable without someone keeping a careful watch
over the proceedings at all times. Using an independent project manager
will ensure that the necessary control mechanisms are in place to prevent
over-run on time and budget.
"So - how does this work?" -
The "Work Package" concept
Frequently, building projects go off the rails financially
because adequate description of the work to be done with associated
responsibilities has been overlooked.
The best projects occur when every subcontractor
knows exactly what is required of them - specifically:
- what they are expected to deliver in terms of the
finished article and
- what are the timescales for completion
Our project management service details each "work package"
for the various trades and this has benefits in a number of major areas:
- Initially these work packages can be used to allow
competitive quotations to be obtained from a number of different suppliers.
The package will clearly define what is required and to what specification
and timescale This means that economies can be driven from utilising
specialists to best effect, potentially taking advantage of a tradesman
who has a "gap" in his workload etc.
- From these priced Work Packages, a comprehensive
budget can be drawn up before work commences, giving time for alterations,
fresh ideas, reductions to be put in place before a commitment is
made. It is true to say that any change made to a building project
which is underway will have an impact on progress - usually an adverse
impact!
- A project plan can be developed up front so that
the timing of each of the trades can be made available at the outset
and each subcontractor signs up to working to the defined timescales
- again a means of controlling activities
- Having selected the successful subcontractors,
orders are placed with the tradesman based on the Work Packages
- Finally those packages are used as a management
tool to monitor and measure progress to ensure that everything stays
on track.
Any ongoing changes to the work package (which are to
be avoided if at all possible) will be documented and agreed BEFORE
they occur on site, thus ensuring that the client is fully aware of
any repercussions that result from those changes, whether they are financial
or time related.
"What kind of contract
should I have with the builder?"
A formal relationship between you and your builders and
advisors is essential to establish responsibilities on all sides. The
Joint Contract Tribunal (JCT) is an independent body that has produced
a standard contract for use between you and the builder The JCT contract
is a robust legal document that avoids technical and legal jargon that
can be used to formalise these relationships.
It confirms the precise arrangements for the work to be done: the price,
the payment terms, working hours, insurance and guarantees and how to
resolve disputes if they arise. It deals with how to make changes to
the work to be carried out and how to deal with a builder who wants
to extend the time taken for completing the work. In essence, it sets
out clearly what's expected of you and the builder. It's a document
that a reputable builder will want to use. Management of the contract
relationships forms part of our service offering.