Why Using A Project Manager Will Save You Money

Project manager, Jessie Jermany, discussing conceptual floor plans with client

What Is A Project Manager?

Firstly, let's establish exactly what a project manager is so that you can understand the role and how it would benefit you.

A project manager, with their extensive expertise, is responsible for overseeing your project's planning, delivery, and completion. They act as a key point of contact for the multiple people involved in a project, such as your subcontractors and key stakeholders (people with a vested interest in your project). By taking on these responsibilities, they alleviate the burden from you, the homeowner, and ensure a smoother, less stressful renovation process.

At their core, a project manager ensures that your project is completed on time, within budget, and within scope. They will meticulously examine every part of your project, leaving no stone unturned. This thoroughness provides a sense of security, knowing that potential issues are being identified and dealt with before they become major problems.

It is their responsibility to know every detail.

A Project Manager's Key Considerations

From the moment a project is secured, a project manager springs into action. They immediately assess the budget, programme, and potential risks that could jeopardize your project's success. This early intervention sets the stage for a well-managed and successful project.

They will identify key milestones (a critical event or achievement that must be met to keep the project on track) and begin contacting the relevant resources required to fulfil your project scope.

Their first port of call will be to establish the key stakeholders (the people they need to communicate with regularly) and define the project scope.

Project programme for renovation project in Norfolk

Defining The Project Scope

Defining the projects scope is a crucial part of project management. It means getting a clear and detailed understanding of what the client wants to achieve. This understanding forms the foundation of the project's success. Without a well-defined scope, the project is likely to face challenges. A defined scope not only allows for accurate planning, budgeting, and risk assessment but also ensures that everyone involved works toward the same objectives, within the same budget and timeline.

How To Produce A Project Programme

Once your project manager has established the foundations of your project, they will start to produce a programme – this outlines all of the things that need to happen and when your project needs to be completed.

A programme starts as a blank page and develops into a project bible – allowing you to know where you and your project are at any given time.

The programme should include time for a design and sample stage and an allowance for approvals and revisions. This process can be lengthy and often gets overlooked at the front end of a project.

Similarly, be sure to allow plenty of time for quality control and snagging at the project's back end with an allowance for remedial work – even with the utmost care, things can get damaged in transit or by human error. Quality control and snagging should also be allowed if you receive materials or products from suppliers throughout the project.

When it comes to outsourced items, always ensure that you ask suppliers for their lead time from the point of order – and when you get close to placing that order, re-check that this remains the case. The supplier may be fulfilling other orders, which has caused their lead time to increase. It's easy to get tripped up by this, and it's a project manager's responsibility to clearly communicate and set expectations for those involved in a project, subcontract or otherwise.

After a detailed analysis, your project manager will identify key milestones in the project. These are significant events or achievements that must be met to keep the project on track. For a home renovation project, key milestones could include completing the design phase, finishing the construction work, and obtaining the necessary permits. These milestones will be marked on the project programme and are known as being on a critical path.

Lastly but most importantly, always, always allow for contingency. Typically, this should be around 30% of the project's duration. Project timelines are becoming faster-tracked, adding additional load and creating room for error as pressure is put on the delivery chain to deliver without compromising on results. Contingency becomes even more critical at this point yet is neglected even more – so if you're to take one thing from this blog, it's contingency!

Once the programme is complete, the project manager can identify the risks in the project.

Traffic light design and manufacture programme

How To Carry Out Risk Mitigation

All projects carry risks—components that can go wrong if careful planning, consideration, and mitigation aren't carried out.

Your programme will help to identify some of the key risks—perhaps the design phase is seeking too much of the overall project timeline, deliveries to and from overseas present a layer of additional challenge, supplier lead time is longer than desired, or there are particularly complex details that require research and development.

Whatever the identified risks are, it's important to note their severity and likelihood and implement mitigation strategies.

If a risk is identified as severe and likely to occur, multiple contingency plans may need to be discussed and implemented in conjunction with conversations with key stakeholders to ensure expectations are set and to provide a clear and agreed path to progress the risk positively.

All risks should be listed on a regularly checked and updated register to monitor and mitigate the risk.

Communication With Key Stakeholders

One of the key responsibilities of a project managers is to maintain open and clear communication with all key stakeholders. This ensures that everyone is updated on the project's progress, aligns expectations, and fosters a collaborative decision-making process. Key stakeholders can include the client, the financial provider, subcontractors, and management.

Clear communication, among other things, helps build trust, manage expectations, facilitate collaborative decision-making, and celebrate success.

How To Keep Your Project On Budget

One of the most common challenges in sticking to a budget is the need to allow for contingency. No matter how meticulously you plan and mitigate risks, there will always be unforeseen circumstances. This is where the expertise of a project manager shines, as they anticipate these surprises and build in flexibility to the budget.

Don't let this daunt or put you off—as experienced project managers; we know that something will crop up, and our risk register will allow for this with some programme and budget flexibility.

To determine the cost of a project, your project manager must speak with absolutely everyone who will be involved and obtain a cost for their specific scope of work along with their payment terms so that a forecasted cash flow can be produced.

As the project develops and these costs start to be spent, a second cash flow chart, known as an actual cash flow, will be produced.

This measures the estimated costs against the actual, letting you know if the project spend changes from what was initially predicted.

Don't be alarmed when some things cost more or less than initially expected; this is normal as the original scope changes shape to reflect the circumstances on site. This is why you must allow for contingency within the budget. It's easy to want to spend every bit of project money you have to get the fullest scope, but it will likely cost you more than planned, so get the contingency in there! If your project cost stays on the path, you can always look to upscale some items towards the end of the project or hold it as a saving.

An essential part of a project budget is ensuring that the project scope doesn't creep – perceived little changes 'here and there' add up and take a toll on the budget and programme. Using the defined project scope detailed at the outset, identify anything that falls outside of this as the project progresses and assess the associated costs involved in doing so. This should be clearly communicated to the key stakeholders, and the client should provide written instruction to agree on any uplift in cost and extension in time. This is often known as a variation to a contract. Any variations should be treated as an additional brief with programming, risk mitigation, etc.

Project cash flow chart

How To Ensure A High Standard Of Quality

It's essential to control the quality of the work received to achieve a standard of excellence.

Request samples and mock-ups at the early stages of the project and ensure you and the other stakeholders are happy that these meet the required standards for the project. Revert to your suppliers with any feedback and request additional samples or mock-ups if changes are needed.

Once written approval is received and a sample or mock-up is signed off, keep one copy of each approved sample under lock and key – this is your project library and sets the agreed benchmark. You can refer back to this as you carry out quality checks throughout the project lifespan. Depending on the complexity of the work being carried out, quality control checks should be undertaken during and after production – as well as during and after installation.

Have a sample log as well as a sign in and out sheet to keep track of their whereabouts. Keep your samples away from direct sunlight – you don't want them to change colour!

When conducting quality inspections, ensure you take photographs and note anything below the project precedence. Relay this eloquently and delicately to those involved and begin an open line of communication on how you can collectively address the problems to arrive at the desired standard.

Why Do You Need A Project Manager?

As is evident from above, they can help you with detailed planning, including a deep dive into your budget, ensuring your ideas are within reach or suggesting ways to refine the scope to bring it in on budget.

Your project manager will quality-check all the work being carried out, ensuring it is to the correct standard and that no corners have been cut.

A project manager will carry the project stresses, leaving the client to have a positive and enjoyable experience as they see their project come to life. The client will be involved as a key stakeholder without juggling the many facets of a project.

Many believe that project management is the area in which to save money. After all, you can manage projects yourself, right?! Unfortunately, in most circumstances, an inexperienced project manager can actually cause you to overspend and for your project to experience delay. A project manager who is an expert in their field knows how to answer questions effectively and efficiently, with the budget and programme in mind. They will consider the more excellent picture and assess the knock-on impact of every decision as it ripples through to completion.

Those with no project management experience often lack this larger overview and expertise, and the project will likely be compromised as a result.

Project managers alleviate project stress, allowing you to enjoy the project process

Can't Afford A Full-Time Project Manager But Need Some Professional Help?

If you can see the value in having a project manager but are curious if you can afford one to work with you, reach out to us at The Collective Edition, as we can advise you of our likely cost to be involved in your project.

We also offer 3 distinct pathways in which we can help – whether that's a feasibility study to prepare a design proposal, budget and timeline for your project or to have us on hand on retainer for as and when you need or if you'd like full involvement from conception to completion, we're here to deliver the results you want without the stress and energy.

Things To Consider If You're Insistent On Managing The Project Yourself

Sometimes, there are instances where you've just no choice but to go solo. If you're to follow this path, ensure you create plenty of personal time to spend on the project, speak with all of your suppliers and get a robust cost plan together. Get back to people promptly and be prepared to solve problems and deal with issues as soon as they arise. Time costs money, so the quicker and well-informed you can act, the more the project will succeed.

If things get too much, please do reach out to The Collective Edition. We may be able to alleviate a specific problem and provide guidance. There's nothing worse than feeling alone or trapped in a project when there's a helping hand nearby.

Ultimately, we want to improve your life whilst still seeing the results in your home.

Here's to exciting ventures...