While it is common for developers and large corporate occupiers to have a dedicated in-house commercial real estate project management consultant team in place. Poor commercial property management can delay your project launch, create hurdles in business planning and add layers of cost. Partnering with a competent commercial real estate project management consultant offers builders and developers with a single point of accountability on each project and passes the responsibility of getting things right on an external team.
How do you know when your organization is ready for an external real estate project management consultant? Here are the warning signs:
A McKinsey study stated that many large construction projects across asset classes typically take 20 percent longer to finish than scheduled and are up to 80 percent over budget. To prevent this, every cost category or line item must be tracked diligently throughout the course of the project to prevent cost overruns. A professional commercial real estate project management consultant has systems in place that track all your construction cost categories individually, allowing you to monitor the percentage of completion and the cost undertaken at a more granular level. This not only helps you save costs but also reveals potential problems to prevent bottlenecks later.
If the only way for you to get information about the status of your project is to schedule a meeting or track down a project manager, not only are you wasting time but are depending heavily on a single person’s judgment. If this project manager leaves your organization, all the insights of your project leave with the person. This can spell disaster for the project. A commercial property management specialist can deliver regular status updates, uncover meaningful intelligence on projects, generate progress reports, and offer specific information at all times to help you make better decisions.
Developers and builders should be evaluating future costs based on historical cost data over multiple projects to identify metrics such as trends in cost over time, vendor volume and pricing, or market anomalies which can assist in procuring products and services at lower costs. Analyzing such trends helps you get the best value from your material and service vendors. A commercial real estate project management consultant can do such trend analysis in minimal time through preset procedures so that you get the best quote from your vendors.
If you are witnessing the aforementioned signs as well as a lack of transparency throughout the project and spend too much time on low-value activities, you should strongly consider collaborating with a professional commercial real estate project management consultant.
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