Can a facility be built without a project manager? Yes, it is possible. It requires a sufficiently competent, professional client or an ideal project and contractors who build without deviations. If the clients do not have sufficient construction competences, professional construction project management and a team of project managers is a must, because there are no projects without inconsistencies, no additional requests and no contractors who avoid deviations.
Construction project management is the process by which a manager coordinates and monitors all the activities of a construction project to ensure that the project will be successfully completed in accordance with its objectives, schedule and budget, and will meet the client’s expectations and standards.
Why can’t every client do without a project manager?
“Construction project management covers a wide range of activities: design and construction procurement, design and construction management, technical supervision, engineering consultancy and more. Not all clients have these competences, which determine both the success of individual stages and the final result,” says Darius Kvedaravičius, Project Director at VICONUS, “Therefore, the construction project management team is here to professionally represent the interests of the client.”
There is no uniform practice in the market when a team of managers gets involved. VICONUS has experience in a wide range of construction projects, from residential, office and commercial to industrial and energy. In the latter, managers are usually involved once the designs are ready and the contractors or general contractor have been selected. These clients therefore require construction project management, technical supervision, contract monitoring, coordination of work progress, etc.
In other cases, managers are involved at the conceptual stage, at the design coordination stage, by helping to draw up the terms of reference and to select designers, by coordinating the design, by being involved in the process of obtaining the building permit, by organising the tendering of the contracts. As the VICONUS Project Director points out, if the client does not have the necessary construction competences, by not hiring a project manager, the client runs the risk of not having a design that does not need to be adjusted – due to non-conformities, additional requests from the client itself; it is not as if the works will be perfectly in accordance with the pre-established plan. And the general contractor is not the designer, so inconsistencies or mistakes are usually against the client, and the problems have to be solved.
Price and budget are another key factors.
Applying a hybrid price model and balancing processes
Project inconsistencies, additional customer requests and lengthy design processes are a major challenge for any project. The pandemic and the geopolitical situation have exacerbated these tensions by unbalancing the market – prices have become unpredictable, contractors are unable to commit to fixing them, and project delivery is at risk.
What can be done?
VICONUS project management team has adopted a so-called hybrid model, alternating between open, contingent pricing and the guaranteed maximum price principle. This model allows for tendering to ensure that the budget is respected; early procurement of construction works, which is applicable during the construction phase: in case of redesign, the budget and the timeframe of the project will not be affected; and procurement of construction works after the preparation of the detailed design and the selection of the materials in advance. This balancing allows for a reduction in price uncertainty. The contractor knows where he can negotiate and the client is assured of staying within the planned budget.It works. In one of the projects VICONUS managed, it saved 3% of the budget and 6% in another.
“This reduces tensions for the team and lets the client know that the business plan is working according to the original budget figures,” summarises VICONUS Project Director D. Kvedaravičius.
Construction project management – how it benefits stakeholders
Design management is an important function to ensure that the design process is carried out smoothly, efficiently and on time, so that the project is delivered successfully. For this purpose, emphasises Rūta Petkevičienė, Head of the VICONUS Design Department, it is important to identify the client’s expectations for the planned object, to assemble a professional team to prepare a project, which results in obtaining an SLD and then a full, high-quality project documentation for construction. This way, the client receives a clear communication plan, the project meets expectations, and quality and timeliness are ensured within budget.
Payment for services is made after review and verification of the work carried out by the responsible manager in accordance with contractual obligations. The client can rest assured that they are being paid for the quality and timeliness of the work.
“We create value not only for the client, but also for the design team and the contractors: our knowledge and experience ensure an efficient design process, expert examination, SLDs and the timely preparation and delivery of the required design documentation to the construction site for a smooth and uninterrupted construction process,” says R. Petkevičienė emphasizes the synergy of a highly qualified team of specialists who apply innovative methods of project quality control, ensure smooth communication, identify risks and manage time and financial resources.
Sustainability is a very important issue today, and in order to achieve a higher return on investment in commercial buildings, VICONUS organizes the design in accordance with the BREEAM certification system, which proves that the building has been built and managed in accordance with the highest level of requirements worldwide, i.e. to achieve environmentally friendly facilities with sustainable use of electricity and water, waste management, protection of the ecosystems and attention to the health and well-being of the people who will be employed in such buildings.
Why a project management team is important
Project managers help minimise errors and manage processes. This requires a wide range of competences and innovative working methodologies. And that means entrusting a project to a management team rather than, say, two people.
VICONUS services include design and construction management, design and construction procurement, construction technical supervision, engineering consultancy. These comprehensive services are provided by professionals with 15-20 years of experience in project management. In the modern market environment, it is difficult to do without digital technologies, which are an integral part of VICONUS work in the areas of technical supervision, communication, management of project tasks and project documentation, scheduling, etc.
The company is certified to ISO standards 9001, 14001, 45001, which are an important tool for improving the company’s performance and customer confidence, ensuring high quality, safety and sustainability.
“It is important for the manager to properly assess the three components of risk: what can affect time, budget and quality. This means not only having specific competences, but also being able to assess the potential impact of legislative changes. This requires a management team of more than 2-3 people with the necessary competences,” says the company’s Project Director D.Kvedaravičius.
VICONUS, now in its sixth year of operation, demonstrates results that show the company’s competence and ability to meet clients’ expectations: the annual volume of projects managed by the company amounts to around EUR 50-100 million.
