How does working with a project/construction manager differ from just getting a builder to do the work?
A project/construction manager works with you to ensure that your project is completed in a timely and cost effective manner. Your project manager will organise all the labour and materials needed to complete your job, oversee the work and ensure the workmanship is up to standard.
He will complete all the necessary paperwork, liaise with all the professionals,(architects, surveyors, structural engineers) and building control.
Your project manager will source all the best trades men for you and supervise them, essentially removing all the day to day stress of the project.
Surely this will cost more than just getting a fixed price from a building contractor?
Not necessarily, often it is a more cost efficient way to build. A traditional building contractor, naturally needs to make a profit. Whilst profit levels vary a target profit margin of some 20% is about the norm. Furthermore any contractor whose annual turnover exceeds around £80,000 will be VAT registered and thus must charge VAT on the total cost of the job.
What this effectively means is that, say by way of example, your final invoice for the project is £100,000 if you assume that 20% of this is the builders profit, and a further 20% is VAT, although you pay the £100,000 you will only have had around £60,000 worth of actual work done.
So how does one save the costs above?
Your project manager will know and will have used very many skilled and highly qualified tradesmen over a period of many years, few of whom will be VAT registered. He will have also negotiated good rates for them. Where they are used on your project, and labour does represent a very significant part of the overall build costs, no VAT would be payable.
Naturally you will pay VAT where it is due, on Materials for example, but again these will be sourced at competitive rates and supplied with all original receipts at cost.
Basically you will only pay what things actually cost, any profit is waived in lieu of a fee.
This arrangement is known as 'Net Cost Plus Fee'
How does a project/construction manager ensure that the project runs to schedule?
Once appointed a detailed week by week time line is issued to you, detailing what is to happen and when. This time line together with the budget is reviewed with you weekly.
Any other questions? Please get in touch.
A project/construction manager works with you to ensure that your project is completed in a timely and cost effective manner. Your project manager will organise all the labour and materials needed to complete your job, oversee the work and ensure the workmanship is up to standard.
He will complete all the necessary paperwork, liaise with all the professionals,(architects, surveyors, structural engineers) and building control.
Your project manager will source all the best trades men for you and supervise them, essentially removing all the day to day stress of the project.
Surely this will cost more than just getting a fixed price from a building contractor?
Not necessarily, often it is a more cost efficient way to build. A traditional building contractor, naturally needs to make a profit. Whilst profit levels vary a target profit margin of some 20% is about the norm. Furthermore any contractor whose annual turnover exceeds around £80,000 will be VAT registered and thus must charge VAT on the total cost of the job.
What this effectively means is that, say by way of example, your final invoice for the project is £100,000 if you assume that 20% of this is the builders profit, and a further 20% is VAT, although you pay the £100,000 you will only have had around £60,000 worth of actual work done.
So how does one save the costs above?
Your project manager will know and will have used very many skilled and highly qualified tradesmen over a period of many years, few of whom will be VAT registered. He will have also negotiated good rates for them. Where they are used on your project, and labour does represent a very significant part of the overall build costs, no VAT would be payable.
Naturally you will pay VAT where it is due, on Materials for example, but again these will be sourced at competitive rates and supplied with all original receipts at cost.
Basically you will only pay what things actually cost, any profit is waived in lieu of a fee.
This arrangement is known as 'Net Cost Plus Fee'
How does a project/construction manager ensure that the project runs to schedule?
Once appointed a detailed week by week time line is issued to you, detailing what is to happen and when. This time line together with the budget is reviewed with you weekly.
Any other questions? Please get in touch.