How to Determine if Your Building Project Needs a Project Manager

Every building has a project in its future, and the question many are facing today is, who is going to manage it? Can the building’s property manager take this on? How about an engineer or an architect? Maybe even someone on the building staff? There’s no one answer, of course, but Matt Resnick, the senior director of project management at AKAM, offers some valuable insights.

How Complicated Is the Project?

One way to look at a project, Resnick says, is to think of how many trades are involved. “You’ll want a project manager for anything that requires multiple trades and coordination,” Resnick says. Additionally, he continues, “if you want an enhanced level of service for residents in regards to communications, you’ll probably want a project manager.” 

As soon as an access agreement is needed from a neighboring building, a project becomes more complicated and more difficult to move forward. “We worked with a co-op on the Upper East Side that had a private nursery school on one side and an apartment building on the other side,” he says. Access agreements were required, the nursery school wanted to do work on its roof during the summer, the other adjoining neighbor needed its courtyard protected and environmental testing revealed there was asbestos. “With all this, we had to reformulate the project plan to accommodate the needs of both neighbors,” he says. ”The new plan allowed the nursery school to complete their work, it allowed us to stage our work and it allowed both of us to complete all the work by next summer. All of this had to be memorialized in an access agreement. Additionally, we were going to be meeting every two weeks with the nursery school to confirm we’re on track for both of us to accomplish our goals.”

Finding a Project Leader

It’s very important, Resnick says, to clearly state the specific goals of the project. No one can be expected to manage it without an understanding of the big picture. Boards typically turn to their architect or engineer to understand how much work is required. Then, if an access agreement is needed, you’ll want to have your attorney draft it and help formulate the business terms. Depending on how many professionals and trades are involved in the project, someone has to step up and be its leader. “Every project needs a leader to bring the project to life in the best possible way for the building,” Resnick says.

Project Management Value Proposition

“Typically a project manager is going to provide value for any type of project,” Resnick says. “They can negotiate prices better, they can help phase the work so the schedule is done sooner and you’ll save on the soft costs, and they’ll take a more mindful approach to everything.”

Whether your project is a couple of hundred thousand dollars or multiple millions, a project manager is worth exploring. “It doesn’t hurt to have a conversation with one,” Resnick says. “Ask them, ‘Why should we hire you? What value are you going to add?’ I can’t stress enough how important it is to match the right professionals in terms of expertise, temperament and personality to the board. It’s very important that everyone has confidence in these people because oftentimes the projects extend over a year or more.” 

Budgeting for each project is key. “The budget isn’t just construction costs but soft costs that are obvious and some that aren’t so obvious,” Resnick says. “If you miss one of these line items, you’re already over budget before you even start.”