Project Management FAQs
What is Project Management?
Project Management (PM) is professional, affordable building service that allows the homeowner to take full control of their project with limitless options to choose from. It is a completely open-book service where all construction costs are exposed with multiple quotes to consider for each part of the project. Unlike General Contractors, PM eliminates the typical 15-20% mark up on all materials and labour and our competitive bidding process provides maximum value. All site supervision, budget management and project scheduling is taken care of depending on the level of completion chosen by the client. No other delivery method provides the homeowner as much flexibility and value for their construction project.
What is my role?
Depending on the level of service you want, the client’s involvement in the project can vary. Simply put, our clients can be as involved in the construction process as they wish with a professional consultant by their side. There are 3 different PM options to choose from – Shell Erection, Partial Turnkey, or Full Turnkey.
Can I bring you my own plans?
Yes. Although we do often manage projects for clients who have hired a 3rd party to handle the design, it is very beneficial to have the same company ultimately responsible for the budget and construction of the project ALSO design the project. Designing your home while wearing the PM hat will ensure that your budget is respected from the start, and our professional Design Services will yield a more efficient, cost effective plan.
What does it cost?
Our PM fees are always a flat rate, calculated up front based on the initial project budget. The fee is calculated between 8-10% of the projected construction cost, EXCLUDING land costs, permit fees and other soft costs not related to construction. The fee is frozen up front before construction begins, and it will not change even if the actual costs exceed the original projected budget.
Who pays the bills?
The clients pay all invoices for materials and labour directly, so you will know where every penny is going throughout the entire process. All invoices are reviewed and approved (or in some cases, refused!) by the PM, and nothing is paid for until the PM has signed off on it. By reviewing each invoice before making any payment, we can accurately track construction costs throughout the project and you will have “real time” budget updates to make financial planning easy and stress free.
How and where do I choose everything?
Our clients are free to shop wherever they wish! With PM, there are no “standard selections” or upgrade packages that only limit your choices. Most General Contractors do this to try and streamline the sales process and maximize profits. They often have purchase agreements with particular vendors reduce their costs for things like plumbing fixtures, flooring, fireplaces, cabinetry, etc. While we do have preferred vendors that will pass on contractor pricing to our clients, ultimately the final choice is yours and as your consultant we will do our best to negotiate the best price and payment terms possible on your behalf.
How do we handle financing for the project?
Arranging financing for a new construction project can be a frustrating process, especially for first time home builders. We deal with banks, appraisers and mortgage brokers all the time, so we are very familiar with their process and we can help guide you through everything. We will prepare fully detailed construction budgets and building plans to give your lender everything they will need to complete your financing, and we will also make sure the payment terms will work to keep the project moving forward.
Can I do some of the work myself?
Sure! PM gives the client the flexibility to participate in the construction of their project and sweat equity is one of the best ways to reduce construction costs. We offer our clients 3 different options for PM – Basic Erection, Partial Turnkey, or Full Turnkey. Clients choose one of these options depending on how active they want to be in the construction, and our fees are adjusted depending on the option you choose.
What about warranties?
In addition to negotiating price and payment terms with all trades and suppliers, we will also negotiate warranty details which are covered directly by each individual trade. Thankfully, you will NOT have to settle for the TARION warranty which represents bare minimum standards only. Since we only invite local, reputable contractors with proven track records to bid on your project the chances of them claiming bankruptcy or hiding behind a team of lawyers to avoid a warranty claim is highly unlikely. Your home will be fully protected under contract with each trade that works on the job, often exceeding TARION standards.
How long does it take?
For a custom home or cottage this can vary depending on the time of year construction takes place, the size and scope of the project, and the level of involvement the client chooses. For a full turnkey service, you can expect construction to take 5-6 months.