Exterior repairs and regular maintenance are a necessary part of the upkeep of any co-op or HOA. But exterior renovation or construction can be a major undertaking for any community, especially when the board is not comprised of people knowledgeable about construction, architecture or engineering. In order to make sure schedules are met, costs are controlled, and quality work is being done, many communities hire project or construction managers to oversee their exterior maintenance projects.

Project Managers and When to Hire One

It's not uncommon for co-op and condo communities in New Jersey to hire a construction or project manager before even starting a construction project.

"This is the point person who deals with project and representing the owner," says Luis Menendez, CCE, CCM, PMP, president of Trigon Construction Management, Inc., in Upper Montclair. "The construction manager is an agent of the owner and is someone who has the background and expertise to manage the construction process. They can come from any discipline, including architecture, engineering or something completely outside the two."

Boards looking to hire someone to manage the process will refer to that person as either a project manager or construction manager.

"There are a lot of different uses of the term project or construction management," says John Colagrande, vice president of engineering for The Whitman Companies, in East Brunswick. "The terms are often used interchangeably. A construction or project manager is hired to oversee exterior renovation, coordinate with contractors, facilitate local permitting, and review change orders on behalf of a client. A lot of times, a board does not have anyone who is competent in that area of work or who has the time to do it, so it's in your best interest to hire someone to represent you with the contractor," he says. "This is your representative at the construction site. Most construction managers have spent a lot of time doing construction work and have a background in it. They are able to share their experience and knowledge with their clients."

That expertise is often culled from many years working in the construction field.

"Normally, [project managers] are from the construction field—they are generally not design professionals," says Ronald Witt, chief executive officer of Sweetwater Construction Corp., a construction management company in Cranbury. "Their expertise is in managing and scheduling the construction process, because they're in the construction trade. By education they might have a business, architecture or engineering degree, but their professional career is dedicated construction management." He adds, "Our approach is from the viewpoint of being a construction company that can manage the process. It's different from being an owner's rep or a project management firm."

The decision to hire a construction or project manager is based on a number of factors, often including the construction expertise on the part of the board, as well as your familiarity with potential contractors.

"If you have a board member who is construction-savvy and has the time, or if you have a contractor you've used for 10 years, you don't always need to hire a manager," says Colagrande. "If you have [a particular contractor] you've used in the past and you've had no problems and trust that person, you don't really need someone out there working with them. If you don't have that comfort level and you're bidding the job out, it's in your best interest to have someone out there watching the project for quality control. A project manager can be a second set of eyes on your behalf, looking out for your best interest."

Potential Benefits

There are several benefits of hiring someone to oversee construction, renovation or repair work on your association's physical property. One of the most obvious perks is that complicated, time-consuming tasks don't have to be delegated to a board member who may not have adequate expertise. This alone could be enough to outweigh any perceived negatives (such as cost, for example) when you factor in the time and money it can save in the long run.

"You'll have the experience that project manager brings to the table with respect to project execution, cost estimation, contract administration, scheduling and time management, which normally owners don't have in-house unless they have so many properties that they have in-house infrastructure to mange multiple projects," says Menendez.

"Cost, or the perception that they would be saving money, is probably the primary reason people opt to go without a construction manager," says Gary Coopersmith, vice president at Sweetwater. "What they don't realize is that most good construction management firms can bring a level of competition to the table, bringing in lower costs to the project. Even with the fee on top of it, it will result in a lower cost overall."

A project on a smaller scale might also be easier for a board to self-manage. But if that's not the case, a construction or project manager, or a construction management firm, can benefit your co-op or condo in several ways.

"The construction manager has a list of subcontractors and can ensure good, cost-effective competition and cost-effective bids, which can be evaluated as to whether the costs are high or expected," says Witt. "The benefits are both in cost and, depending on the homeowners association, time. Do they have the time to coordinate it themselves? If not, they'll have a professional organization committing to this schedule."

"The other benefit when you hire a construction manager is that when the construction manager goes to the base of subcontractors, there's a high level of commitment of those subs to construction manager. Because the subs rely on the construction manager for future business, they're more apt to show up and not delay things," says Coopersmith.

Ensuring Quality

The construction or project manager serves as the board's eyes and ears on the job site. One of the most valuable aspects that a construction or project manager brings to the table is his or her on-the-job experience and in-depth knowledge of the field. A knowledgeable and experience professional will be able to monitor the process as well as head off any potential problems before they arise.

"Make sure person you hire has a good resume in that type of work," says Colagrande. "He or she would stop anyone from doing bad job before it happens and be able to direct properly so it wouldn't become an issue."

"We have ability to monitor what the contractor has scheduled and the phasing of the project. So we're tracking and making sure their project is moving in the right direction. We monitor and compare what's planned to what's executed," says Menendez.

Aside from the project or construction manager, other professionals can help ensure that work is being done properly.

"Between experience of contractor, the construction manager, the design professionals and sometimes third-party inspectors, regularly mandated inspections make sure quality control is being maintained," says Coopersmith.

"Hiring someone who has a good handle on these costs is going to make sure you have the most efficient use of the money. Most construction managers use scheduling tools and software where you have at least weekly goals and milestones that need to be achieved on the project. They thoroughly review the project with specialty trades and establish schedule based on the different people whoa re involved. The project manager would ensure that subs are doing their jobs," says Witt.

If contractors or subcontractors have fallen behind or have not completed parts of the project on time, your project manager might also suggest withholding payment.

Your Bottom Line

In any exterior maintenance or construction project, cost is always a consideration. It can be the deciding factor when a board is trying to determine whether or not to hire a construction manager in the first place. But while the expense might initially look like more of an investment than you want to make, Menendez cautions that the hidden value of a construction or project manager can make it worth your while.

"In the long term, a construction or project management approach certainly adds to bottom line in the sense that you will reduce costs and manage changes and time issues through the process of the project. The value a project manager brings is something that if it's not done, there's the potential for added costs for other reasons. It's risk management. The role that the project manager plays mitigates the risk that the owners would take on by themselves," says Menendez.

Additionally, a good project or construction manager should be able to help you reduce your project expenses.

"On a well-organized and well-bid project, a good construction manager should be able to reduce costs by at least 10 percent by picking right subcontractors, making sure that there's adequate competition, making sure all bids are adequately scoped. A good construction manager can get most efficient results from not having unforeseen costs or insufficient scope on part of subcontractors," says Witt.

According to Witt and Coopersmith, the cost of a construction or project manager usually ranges from five to 10 percent of the cost of the project.

"It's our estimation that the benefits of having a construction manager help to offset that fee. The actual costs come out in favor of the client in the end," says Witt.

And by making sure the project moves along on schedule, co-ops and condos will save both time and money.

"I can't emphasize enough that the schedule management adds to the bottom line component," says Coopersmith. "These are costs associated with project running on and on, and schedule management affects overall cost."

Serving on the board of your co-op or condo is often a time-consuming commitment. Add to this the task of monitoring construction or renovation work, and you barely have enough time in the day for yourself. If your co-op or condo is about to embark on any type of exterior renovation project, and time and money are of the essence—and, let's face it, they usually are—consider the benefits of hiring a project or construction manager. While you might balk at the initial thought of spending more money, the savings you could realize in both time and money—as well as having someone to ensure the work is done properly—could make it a worthwhile investment.

Stephanie Mannino is a freelance writer and novelist living in Erie, Pennsylvania.