Last week we hosted Part 2 of our beyond price & quality WEBSHOP, Project Management for Property Professionals. During the WEBSHOP, we focused on essential tools, designed for property managers, that make managing construction projects easier.
This session was tailored for property managers and building owners who want to simplify project management and reduce the stress of overseeing construction projects.
Along with our in depth review of essential project management tools and best practice, we invited our audience to ask questions about the content or project management in general. Here are a few of the great questions and our answers for the webshop:
Q: The biggest problem with the weekly meetings and updates is that owners do not understand that these have costs and are something they try to trim. Are there examples of times that the misalignment has been an issue that you could share with your clients?
A: Your questions suggests as property manager you charge a fee to attend weekly meetings and manage projects. To be clear, the cost associated with weekly meetings from you contractors or consultants will have been included in their contracted price.
Weekly meetings help stakeholders stay aligned and updated on critical project elements like schedule, budget, change orders, and logistics—factors that directly impact project costs. Effective weekly meetings can help keep jobs on budget and even reduce costs in some cases. For example, during a meeting, owners and their representatives can review the opportunity costs of a proposed change order in person. If the owners don’t see value in the change order, they can decide not to approve it, potentially saving money. This demonstrates how regular meetings can justify their incremental costs by preventing unnecessary expenses.
Q: How do you handle a very picky owner who points out the smallest deficiencies and won’t sign off?
A: Deficiencies are a part of any project. It is the responsibility of the contractors and consultants to identify and address these deficiencies as the project progresses, rather than leaving issues to be noted by the owner. That said, let the owner know that they will have an opportunity to inspect the project at the end or after a major phase is completed, micromanaging will only impede progress or productivity.
In addition, expectations on quality should be clearly defined in the proposal and pre-production meeting regarding what constitutes a deficiency. All stakeholders, including the owner, must be aligned on this.
Also, existing deficiencies should be identified by the contractor as work progresses, so that an overly critical owner cannot unfairly assign blame.
Q: How long does it typically take to get a building permit, this needs to be considered as well during the preliminary meeting.
A: This varies significantly depending on the type of permit and the city. For example, a street use permit could be issued in days, while a building permit may take months. It’s important to understand the timelines and costs associated with permits well in advance of any project starting—sometimes weeks or even months before.
Q: Should there always be a 10% holdback and when should it be released?
A: For larger projects, a 10% holdback is standard to ensure performance, quality, and timely project closeout. This holdback must be released in accordance with the Builder’s Lien Act, as failing to do so can lead to substantial legal and financial issues for the owner.
For smaller projects, such as those under $50,000, and assuming you’re working with a proven and trusted contractor, the cost of properly administering holdbacks may not be worth the effort.
Our WEBSHOP provided valuable insights, tools and best practices on effective project management for property professionals. The questions from participants further equipped property managers and building owners with the knowledge needed to make informed decisions, ensuring successful projects.
Stay tuned for Part 3 of our Beyond Price & Quality WEBSHOP series, The final 5%: How to Close out a Project, upcoming on November 14th, 2024.
At WCP Building Renewal, we specialize in building restoration, commercial painting, and concrete restoration. Whether you’re a property manager needing comprehensive building restoration services or seeking a reliable commercial painting company, we ensure high-quality, durable results with every project.
If you have any questions about your next Building Renewal and Commercial Painting Project we can be reached at [email protected] or 604.420.5552