When managing renovation projects, one of the biggest decisions a property business can make is whether to hand project management over to a builder or keep it in-house.
For my business, I have chosen to keep project management in-house. As the director and owner, I currently take on the role of Project Manager myself, overseeing the entire renovation process from the initial planning stages through to completion.
This approach has worked particularly well for me because of my previous experience in IT. During my IT career, I worked on hundreds of projects, gaining extensive experience in project planning, resource management, budgeting, risk management, problem-solving and delivering projects to completion.
What Does a Builder-Managed Project Look Like?
One of the advantages of using a builder to project manage a renovation is simplicity.
Typically, a builder will provide a fixed project cost and an estimated time frame for completion. They then become the main point of contact and escalation for issues that arise during the renovation.
This can be extremely valuable for someone who doesn't have the time, experience or desire to manage a renovation themselves.
However, there is a cost associated with this convenience.
A builder may typically charge around 15% to 20% of the overall renovation cost for project management and associated responsibilities. On a large renovation, this can quickly become a significant amount of money.
What Does Project Management Actually Involve?
Project management is much more than simply organising builders and tradespeople.
A typical renovation project can involve 120–150 individual tasks or steps, all of which need to be planned, monitored and managed. ( see below from the most recent project)
Some of the responsibilities involved include:
Taking responsibility for project resources and overall costs
Ordering materials required to complete the project
Planning and calculating project timescales
Hiring and coordinating tradespeople and staff
Managing project costs and budgets
Organising waste management, including skips and disposal
Managing delays and unexpected problems
Dealing with broken equipment, fixtures and fittings
Managing snagging lists
Identifying and resolving post-project faults
Coordinating with local authorities and utility companies
Dealing with issues such as planning requirements, gas problems and water leaks
Monitoring progress and ensuring the project remains on schedule
Coordinating the various trades and ensuring work is completed in the correct order
Driving the project through to final completion and closure
And, of course, there are usually plenty of unexpected issues that appear along the way!
Managing the Project In-House
By taking on the Project Manager role myself, I assume responsibility for all of the areas above.
This means I am directly involved in planning the work, coordinating the trades, controlling costs, dealing with problems and ensuring that the project continues to move forward.
I also create a detailed project plan for each renovation.
A typical renovation can contain 120–150 individual steps, depending on the size and complexity of the property.
Having a structured plan provides visibility of what needs to happen, when it needs to happen and what needs to happen next.
It also allows me to identify potential problems earlier and react quickly when something doesn't go according to plan.
The Financial Benefit
The biggest advantage of keeping project management in-house is the potential cost saving.
By managing the projects myself rather than paying a builder to take responsibility for the overall project management, I have saved thousands of pounds in project management costs.
Rather than simply reducing the overall cost of the renovation, I have been able to reinvest some of those savings into developing and growing the business.
Of course, this approach isn't necessarily right for everyone.
Managing a renovation project requires time, organisation, attention to detail and the ability to deal with problems as they arise. It also requires a good understanding of budgets, timescales, contractors and the construction process.
For me, however, my previous project management experience has given me the confidence and skills to take on this responsibility.
So, Should You Hire a Builder or Manage It Yourself?
Ultimately, there isn't a single answer that works for everyone.
If you don't have the time, experience or confidence to manage a renovation, paying a builder to take responsibility for the project can be a very sensible investment. The additional cost effectively buys you convenience, experience and a single point of responsibility.
However, if you have the necessary skills, experience and time to manage the project yourself, keeping project management in-house can provide substantial savings.
For my business, the decision has been straightforward.
I prefer to keep project management in-house, take responsibility for the process myself, and reinvest the money saved into growing the business.
It may mean more work and responsibility, but having control over the project, the costs and the process has proved to be a significant advantage.
Michael Westhead
Owner/Director
MW Maiden Property Ltd