Why should you use a Project Manager to run your project rather than the Owners Corporation Management?
Many owners might assume that their Owners Corporation (OC) Manager will run their building maintenance or repair project. However, whilst OC Managers oversee the legal requirements and facilitate minor issues and repairs, their expertise is primarily in the running and administering of day-to-day legal and financial requirements. Generally, they’re unlikely to have the relevant experience and expertise to appropriately manage consultants and contractors for large scale repairs. They’re also unlikely to hold the necessary Professional Indemnity insurance cover which could cause problems later if issues were to arise.
OC Managers are likely to be looking after a large portfolio of properties, and it would therefore be difficult for them to dedicate the appropriate amount of time and expertise that a major project would require. Appointing a qualified Project Management team with relevant expertise and experience will add value to a project and is less likely to expose lot owners to any conflict of interests that an OC Manager may be exposed to through their earlier decision making.
It would be common for the OC Manager or Committee to have potential or perceived conflicts of interest whilst carrying out a dual role of running the OC and managing rectification works. By keeping the project at arm’s length, you will have the confidence that any issues or concerns are dealt with efficiently and effectively.
It’s also worth noting that any additional work carried out by an OC Manager will likely be charged as a fee for service, on top of the ongoing day-to-day management fees. To extract value from outlaying these funds, it makes sense to direct it to a Project Manager with expertise in their field. Whilst owners might initially baulk at paying this fee, it’s prudent to consider what it could cost if an expert isn’t appointed and a problem is not correctly identified and rectified the first time. An example of this could be a water leak where the source of the problem is incorrectly identified in the first instance, causing multiple call outs and rework.
Appointing a qualified Project Manager with expertise in their field and relevant qualifications and experience in the building and construction industry will ensure that builders will not take advantage of OC Managers by attempting to stretch their profit on a job and cover over a difficult issue that may end up costing the OC even more money down the track. When using a Project Manager, you will have confidence that any defects are identified and rectified, and the works are completed to the required standard.
What should you look for in a project manager? It’s important to do your research when appointing your project management team. Do they have project management or qualified engineering staff working for them? How long have they been in the industry and what type of building developments and projects have they worked on? The more experience in the industry, the more confidence you can have that they are up to date with relevant building laws and codes and are cognisant of the standards that are required to be met, including the warranty on completed works.
We are reminded by that old saying – “stick to what you know” – let the OC Manager manage the affairs of the day-to-day operations and legal requirements, and let Project Managers with professional qualifications and expertise in building related projects manage your next project for ease of mind for all stakeholders. You wouldn’t let a building and construction Project Manager run your Owners Corporation, so why would you let your Owners Corporation run your building and construction project?
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