Project management is a process that was initially designed for regulating schedules, budgets, and standards in the construction sector. Over time, it was recognized that the same approaches, slightly modified, applied to many sectors, from manufacturing to high-tech operations. Read more about reliable plumbing here.
The function of the project manager on real estate and construction projects varies according to the nature of the work. A project manager’s constant obligation is to guarantee that the project is completed on schedule and within budget. Prior to the start of construction, the project manager may be responsible for site selection and due diligence, obtaining zoning and entitlements, assembling the project team, and developing a timetable and budget; all of which will serve as the basis for the remainder of the project.
Once the project begins, the project manager serves as the owner’s representative on-site, ensuring that the project is constructed according to the owner’s instructions. As the project moves from planning to execution, the project manager’s attention will turn to contractor scheduling, payment processing, and change order management.
Real Estate Development
A real estate development or property development is the beginning of a real estate project. It is a multi-tiered business process that encompasses a variety of operations, including the acquisition of new land, the selling of established land or property to others, the rehabilitation of existing land or property (structures), and the creation and construction of new buildings and property. Real estate development and construction have various characteristics, one of which is project management. Additionally, there is a need for a project manager.
While developers acquire land or property, finance real estate transactions, contract with builders to construct projects, and conceptualize, create, and develop the entire real estate project from start to finish, it is the project manager who truly oversees and orchestrates all real estate components and participants to ensure the job is completed successfully.
Naturally, the real estate developer and project manager collaborate with a variety of different individuals during the real estate development process. These individuals may include city planners, government officials, lawyers, architects, surveyors, inspectors, leasing agents, contractors, engineers of various types, construction workers, and scientists.
Project Manager to Oversee and Lead the Whole Project
It makes no difference whether a real estate developer purchases a property that already has plans and permits in place or acquires an existing property with the intention of renovating or reconstructing it from the ground up; every development requires a manager to oversee the project and act as the general in charge to ensure the development’s proper construction and completion.
The primary task of a project manager is to ensure that the real estate project is completed within budget and on schedule. He works for and is typically accountable to the real estate developer or owner(s), and he is sometimes engaged in due diligence and site selection prior to the start of construction. The project manager’s responsibilities often involve acquiring entitlements, permissions, and proper zoning, as well as selecting the appropriate contractors, and setting a functioning budget and timetable.
On-site, a project manager acts as the owner’s commander in chief and primary representative for the duration of the project. Thus, a real estate developer’s ability to see his project through to completion is entirely contingent on employing the finest and most skilled project manager. In fact, the primary objective of effective project management in real estate development or construction is to identify and hire a project manager capable of overseeing the whole endeavor. To that end, here are five recommendations or vital qualities that a project manager must possess in order to ensure the success of a development project.
Establish Project Objectives and Benchmarks
Setting construction project objectives is a critical function of a construction project manager. It is the construction project manager’s responsibility to ensure that the client’s specific objectives are realized. Additionally, the construction project manager is responsible for verifying the work’s perfection, handling requirements, and deliverables. The construction project’s objectives determine the number of personnel and the sorts of materials required to accomplish the project.
Establishing benchmarks throughout the planning phase is a critical component of the construction project manager’s responsibilities. Benchmarks are milestones during a construction project that are used to determine the project’s state and progress. Benchmarks track a project’s performance throughout its existence. Benchmarks aid in determining the time frame, budget, and progress of a project. Without planning and benchmarking, a construction project manager may struggle to grasp the project’s timeline and budget allocation.
While construction project managers are accountable for a variety of jobs within a single project, their duties are important to the project’s success. A construction project manager recruits people who can collaborate successfully to produce a high-quality end result. A construction project may be more than successful with good planning, communication, budgeting, and risk management.