Paying for Project Management

[Wade Wright]

Hi,

I am building a fourplex in Central TN and since I live in another state, I want to hire a project manager.  The job is about 1 year, 3 months from start to finish.  How much should I pay this person to manage the project and hire subs?

Thank you,

Wade

[Wade Wright]

Quote from @Seo Hui Han:

Quote from @Wade Wright:

Hi,

I am building a fourplex in Central TN and since I live in another state, I want to hire a project manager.  The job is about 1 year, 3 months from start to finish.  How much should I pay this person to manage the project and hire subs?

Thank you,

Wade

 Are you sure you want project management?  You mention hiring subs, sounds like you mean a general contractor. 

Project management's job in construction is to basically keep the contractor in line.  For example, I have used TetraTech before.   They will evaluate the contract with the builder and the budget, make sure it falls within market median costs, and set milestones for draw requests.  They will inspect the project at those milestones and evaluate all the line items in draw requests before authorizing dispersal of funds.  They will not release the final retention of 10% until the project is complete.  It is a really good safeguard against contractor malfeasance.   For my project budget of 1.5 million, they charged about 10k.  Worth every penny.