Project management: the basics
Mike Hardwick looks at how to go about hiring a great team for your project
In the simplest terms, project management encompasses the skills needed to produce a defined outcome (in this case a new house) within the constraints of the resources available (your budget) and within a certain timescale. The latter can be flexible, but usually manifests itself as “in the house before Christmas.”
We encounter project management in our day-to-day lives without giving it a second thought. Arranging a family holiday, planning a wedding and organising a party are all projects that we are happy to approach with little or no prior experience – and more often than not, we’re able to successfully deliver them with great success.
Building a house is no different. People have constructed homes for centuries. Quite a few builders and tradesmen know how to do it rather well because, for most projects, it’s not rocket science. Leaving aside oneoff conceptual designs and instead focusing on the typical houses that we might contemplate building for ourselves, the sequence of events is based on common sense.
The real art is in finding the right materials and sourcing the right people to do the job to the standard you require, for a price you can afford.
Should you use a professional?
A good project manager can save you some, most or even all of their fees by bringing greater efficiency to the site. By buying materials cannily (using access to their trade discounts), foreseeing and avoiding costly delays and minimising the need for rework, the build will be completed on time, on budget and with minimum fuss.
There are undoubtedly plenty of professional, independent project managers out there who can take dayto-day control of your build, but the clue is in the ‘professional’ bit. These specialists don’t come cheap (expect to pay around 15% of your build budget) and most self builders have finite funds, the majority of which needs to be allocated to the physical build by way of materials and labour.
Think of it this way. If you have £200,000 to spend, 15% of that would be £30,000 – potentially enough to pay for a lovely kitchen, designer staircase and good-spec bathroom. For this reason, using an independent PM tends to work best on a big, complex scheme where the pro’s experience and contacts can help to claw back some of their fee.
This prompts most of us to either undertake the role of project manager ourselves or to entrust this task to a general builder – someone who knows what they are doing and has the contacts to get the right trades at the right price. For a typical self builder contemplating creating a straightforward new home, this can be a sensible route to take; as long as you select the right main contractor.
Remember though, that the best builder is not necessarily the cheapest. While they need to be affordable on your budget, it is just as important they are capable of doing a good job. Gauging whether that will be the case means doing your homework by asking them for references and following them up. A good builder will always want to do a high-quality job as
his next contract depends on it – after all, you’re the one who will be providing the references to the next clients.
Alternatively, you can ask your architect to undertake the project management role. For complex designs or cutting-edge builds, this can make a lot of sense, as you get the reassurance that the person who came up with the drawings – and therefore knows how it’s supposed to fit together – is coordinating delivery.
Architects often calculate their management fees as a percentage of the build costs. A common worry is that this encourages the architect to ‘build big’ and specify a raft of expensive materials in order to maximise their potential return.
You can potentially combat that by agreeing for them to work on a fixed fee or ceiling price (something an independent PM or main contractor may also be willing to do). This gives you a top-line figure for the build while incentivising them to seek keen prices from trades. So it’s a win-win situation.
Should I self-project manage my project?
A surprising number of people choose to do this, and 99% of them successfully oversee their schemes to completion – although most will tell you that it’s a full-on job that takes up virtually all of their time and energy.
Because of this, first-time self builders often work with one of the established package home suppliers, such as Potton. These companies have experts on hand, and you can select from a range of services to help as much or as little as required throughout the project.
They can offer you a package for the design, materials supply and erection of your house shell on site – so you get a weathertight building on a fixed price that’s ready to be fitted out using your own trades. In some cases, you can use follow-on services even deeper into the build.
Should you choose to do another self build, you’ll have learnt a huge amount. Confidence levels will be that much higher because the processes involved are clearer and easier to address the second time round.
If you do decide to manage your own build, then remember that you are taking on responsibility for everything that happens – in other words, the buck stops with you. While that may seem daunting, it’s quite amazing how writing out the cheques can
concentrate the mind and give you the motivation to find great deals and resolve problems on site.
The trade-off is that it will take up much of your free time, of course, but you will have a keen interest in making sure you are getting value for money. You’ll be surprised at just how empowering this is and how much you are capable of. Not to mention, it can be very rewarding when you see the finished results: a new home, made to your exact specifications, that’s only there because you made it so.
HIRING YOUR TEAM Building your own home requires the involvement of multiple individuals and companies, most of which you will be selecting and appointing. Of course, the one thing we all want to steer clear of is the ‘cowboy’ or rogue practitioner. Mercifully, these can be avoided through doing a little homework before you decide. The cowboys are simply after your money and will disappear when things go wrong. But reputable trades and professionals will always start with the intention of delivering a good service for a fair price. They know their next job is likely to require your reference, so will have a vested interest in showcasing their best skills.
Architects & designers
Let’s assume you have a plot with at least outline planning permission. Choosing the right team to exploit the site’s unique characteristics is a good starting point. Picking a random design practice out of the blue is unlikely to achieve what you seek. Find someone on your wavelength, who enjoys designing the sort of house you are aiming for.
The first step is to check out the company’s website and portfolio of projects. If you’re after a cottage-style home and the website is full of ultramodern cubes (or vice versa) you’re unlikely to hit it off. Check that your chosen designer has professional indemnity (PI) insurance in case things go awry. A qualified architect should have PI insurance as a rule, but some designers won’t. It’s worth making sure that the firm who is doing the planning drawings can also produce the Building Regulations drawings, necessary for construction. Not all designers can do this.
Other professionals
You may need to hire specialists to provide things like site surveys, flood risk assessments and environmental studies. Choice tends to be limited for these experts and just finding a professional person who can do the job can be a minor victory. However, if you can, it’s worth shopping around, as prices vary. Small one-man-band
operations tend to be better value for money than larger organisations with high overheads to support.
Hiring a general builder
You should typically ask for quotes from three to five builders in the local area, preferably based on personal recommendations from people who have had a successful experience.
When you go out to tender, you’ll be required to give enough information to inform a price. So, you should know what materials you’re using at this stage and be able to provide Building Regulations drawings (not planning diagrams) so that each contractor can price the job accurately.
Quotes will vary, of course, so it’s smart to get an outline estimate such as that provided by the Build It Estimating Service (find out more at www.buildit.co.uk/estimate). This gives you a baseline to challenge costings that look too expensive or, occasionally, too cheap. Bear in mind that lowest price rarely means best – filter out the nonstarters and arrange to meet builders that look promising.
Remember, you’re searching for someone with whom you can communicate and get along with for the next year or so. You’re not looking for a friend for life, but you need to understand each other and what’s required. A good sign is when your builder fields as many questions as they’re being asked, offering suggestions to make things work smoothly. This shows an interest in undertaking the work and a keen attitude to get it right. Talk about safety on site and confirm they are familiar with their site safety responsibilities under Construction (Design & Management) rules and that they are comfortable with their principal contractor duties.
Engaging individuals
If you are self-project managing and hiring individual trades, it’s vital to both take references and follow them up to ensure that the workers you’re considering are competent and who they say they are. My preference is to use local trades who have established a reputation for good work in the area. Join local community social media pages and ask for recommendations for the go-to companies in the area. These may not be the cheapest, but they have a reputation to maintain.
In some cases, I don’t even look for alternative quotes, I just ask the person I know is best to undertake the work and always get charged a fair price. Look for membership of a relevant trade body as a sign that they are competent. For example, the National Inspection Council of Electrical Installation Contracting (NIECIC) for electricians, Gas Safe Register for plumbers etc.
Inspection regime
When it comes to inspection under Building Regulations, you can either use your local area building control (LABC) or an approved inspector
(AI). You can ask either to provide a 10-year structural warranty. It can be useful to have one inspector covering both of these requirements, as there will be fewer site visits required.
There are advantages to using both providers: your LABC officer from the council will be close to the site. They should also have a knowledge of the ground conditions, whereas your AI may not be from nearby. However, the AI service is risk-based and may be cheaper, especially if your project is fairly straightforward.
Facilities
Make your self build site or renovation a good place to be. Trades tend to enjoy working on one-off projects as there is not as much pressure to rush the job like on multi-site schemes.
So, they have the time to do the work properly and to a high standard.
Providing tea, coffee, a pack of biscuits and the occasional show of appreciation for a job well done will make for a happy site. It will also put your trades in the right frame of mind for helping out with those impromptu ‘while you’re at it, would you mind taking a look at...’ moments that inevitably crop up during a project. Be careful not to over-supervise; hovering over trades and pointing out the obvious can be very irritating – just let them get on with the job.
Understanding value for money
It’s easy to be seduced by a cheap price – and the cowboys know this. Low-cost estimates, especially if they are offered against simple planning drawings, devoid of the detail needed for accurate pricing, aren’t worth the paper they’re written on. The costs will soon balloon as extras are added through the course of the project. The best builders and tradespeople will have been doing the job for years and tend to be able to charge more for their skill and experience. They might not provide the cheapest quote, but they will get the job right first time and to a very high standard.
Remember that everyone involved in your project is in it to make a profit – that’s how the game works, and ‘profit’ shouldn’t be a dirty word. I occasionally see self builders and renovators obsessing about trades making money on materials provided on a supply and fix basis, preferring to buy everything themselves thinking there’s a saving to be made. The truth is, the tradesperson will be able to buy it far cheaper than you. Also, if they have supplied a product and it needs replacing under warranty, they’ll come back and fix the problem. If you go out and buy the kit, you’re on your own. Ultimately, you’ll be making a profit, too, because if you’ve got it right, your home will be worth more than it cost you to build, so everyone wins.