THE PROJECT MANAGER
Project managers have been involved in various industries for decades. The responsibilities of a project manager will vary between industries and projects. Within the formal sector of the construction industry, and on larger building projects, the responsibilities of project managers are fairly well defined. Responsibilities within the less formal and domestic industry vary radically and the term Project Manager generally carries misconceptions.
The significant difference between a building contractor and a project manager is:
- a building contractor carries the risks involved in a building project.
- a project manager is employed as an overseer and the employer would carry all the risks.
This fundamental difference can easily be overlooked and misunderstood and the result, due to a lack of information, could drop both the project manager and employer into hot water.
Within the domestic building industry (homeowners, developers and even contractors) the use of project managers is widespread. There is a perceived saving of paying management fees rather than a fixed contract price and a certain flexibility is enjoyed.
The project manager’s fees can vary greatly and are usually higher on smaller projects. Fees can be a percentage of predetermined cost and fixed upfront, or a percentage of the final project cost.
Activities and responsibilities of the project manager and employer should be carefully considered and contained in a written agreement.
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