Project manager - Philadelphia.PA

[Andresa Guidelli]

Hi everyone,

I would like to hear your opinions and experience with project managers. More specifically, I would like to know the pros and cons of having a project manager for your rehab projects.

Also, I would like to have a better idea of the cost, how much do you usually pay? Is it a flat fee per protect or a weekly payment?

Thanks,

Andresa

[Greg Behan]

Hi Andrea.   In my experience it depends on the depth of the projects and the amount of projects.  If you prefer someone else to handle the entire rehab process so that you can focus on other tasks at hand then a good GC or project manager is extremely valuable.  The cost varies a lot depending on the manager and how they price things also vary.

      The fee depends if you are hiring a full time project manager that would basically be like an employee or if you are looking for a GC that manages their own projects.  Basically a GC will incorporate their costs into the total bid for the project, a project manager a lot of times would be an employee of a larger construction company, a builder, or investors that take on a lot of projects.  Most GC's will give you a price and a payment schedule, most payments are due after a specified amount of work is completed.  For instance all demolition is done, all rough plumbing is done, all drywall is done, it really depends how you work it out with your contractor.

[James Masotti]

@Troy Sheets should be able to provide some great perspective on this as he's used a GC in the past and is transitioning to doing some of his own GC work. 

[Andresa Guidelli]

@Greg Behan

Thank you for your feedback.

I've been managing my own rehabs, but was recently approached by out of state investors who are looking for a project manager. I know how much it takes to run a project efficiently but the fee I would charge needs to make sense for both parties.

I've found that GC's are more focused on "doing". Most of them don't know how to run a business and need management, so I'm looking to work with the GC. Does it make sense?

[Andresa Guidelli]

@James Masotti

I appreciate your referral.

[James Masotti]

Originally posted by @Andresa Guidelli:

@Greg Behan

Thank you for your feedback.

I've been managing my own rehabs, but was recently approached by out of state investors who are looking for a project manager. I know how much it takes to run a project efficiently but the fee I would charge needs to make sense for both parties.

I've found that GC's are more focused on "doing". Most of them don't know how to run a business and need management, so I'm looking to work with the GC. Does it make sense?

 If you ask me the GC is basically only being paid to manage the business and project. I don't know many GC's that are actually doing any work. Some may have their own crew to do the carpentry and miscellaneous odds and ends type stuff...but then they sub out the rest. 

If you have the network of contractors than I'd say just get your GC license...get the insurance...and then start the side business of managing projects for other investors while you do your own. This should give you better pull with the contractors on your own projects as well I would think, since you're not brining them more business than just your own investments. 

[Greg Behan]

I agree with James.   Most GC's pic and choose some work that they'd like to complete on the job and for the rest we use a good group of subs.  Cheaper contractors tend to be more of a handyman, carpenter, drywall guy, or whatever not necessarily a GC.  That's the main difference between a contractor and a GC.

[Andresa Guidelli]

I agree 100% with you folks but I think it's also important to difference ate a GC from a construction project manager.

From my point of view a construction project manager can work as the intermediator between the GC and the property owner. He/she can also manage several projects at the same time that are not necessarily being done by the same GC.

Each GC must be licensed and insured and will be responsible for pulling all permits and hiring/managing their employees and subs.

Some of the CPM responsibilities would be scheduling, budgeting, selecting finishes and meeting up with GC in a regular basis.

Some out of state or first time investors do not have the time or knowledge to manage their projects and they do understand the need of having someone managing it instead of the GC.

What are your thoughts?