Boosting Project Success
Why Co-op and Condo Boards Should Hire Outside Project Managers
When it comes to managing capital projects in a co-op or condo building, the board’s decision to hire an outside project manager or owner's representative (aka Owner’s Rep) instead of relying on the property manager can have several advantages. While property managers excel at overseeing day-to-day operations, the complexities of capital projects often require specialized expertise and dedicated attention. Some of the pros of hiring an external professional for managing the building's capital projects are:
Specialized Expertise: An outside project manager or owner's rep brings specialized expertise in managing capital projects. Unlike a property manager who primarily focuses on day-to-day operations, an external professional is dedicated to overseeing and executing complex projects efficiently and effectively.
Unbiased Perspective: Hiring an outside project manager or owner's rep provides an unbiased perspective on the capital project. They bring fresh insights, challenge assumptions, and offer objective advice to the co-op or condo board. This can lead to better decision-making and innovative solutions that might not have been considered otherwise.
Resource Allocation: By delegating the management of capital projects to an external professional, the property manager can concentrate on their primary responsibilities. This allows them to allocate their time and resources more efficiently, ensuring that both day-to-day operations and capital projects receive adequate attention.
Enhanced Project Management: An outside project manager or owner's rep has a dedicated focus on project management. They possess the necessary skills and experience to handle the complexities of capital projects, from coordinating with contractors to monitoring timelines and budgets. Their expertise can result in improved project outcomes and reduced risks.
Mitigation of Conflicts of Interest: By separating the roles of the property manager and the project manager/owner's rep, conflicts of interest can be mitigated. The property manager may have existing relationships or contractual obligations with vendors or contractors, potentially compromising objectivity. Bringing in an outside professional helps ensure that decisions are made in the best interest of the co-op or condo board and the project itself.
The decision to hire an outside project manager or owner's rep for a co-op or condo building's capital projects can offer numerous advantages over relying solely on the property manager. Their expertise, unbiased perspective, and dedicated focus on project management can lead to streamlined processes, cost control, and improved project outcomes. While there may be some considerations such as additional costs and communication challenges, the overall benefits outweigh the drawbacks. By leveraging the specialized skills of an external professional, co-op or condo boards can ensure successful and efficient execution of capital projects, ultimately benefiting the community and its residents.
Need help with a construction project for your building? The Folson Group provides construction project management services that makes co-op and condo board engagement filled with a feeling of accomplishment. Set up a strategy call with us.