When a building, HOA or an individual apartment owner starts a big project, coordinating phases of work, construction schedules, and other logistics can seem like an extremely daunting task. It’s a lot to orchestrate and keep track of – so busy boards, managers, and residents often hire a construction manager or owner’s representative to be on-site, to keep the work on schedule, to ensure that agreements with contractors are fulfilled, and to act as a liaison between board members and workers. Not everybody uses an owner’s rep or ‘CM,’ but enlisting one can help a project go more smoothly – and it can eliminate a lot of pressure on board presidents, committee members and managing agents. 

Knowing the benefits of using a CM on major capital projects is important for members of the board of directors, but also for other members of the building community, too. While CMs are the logistical managers of projects and should know what they’re doing whether anyone on the board does or not, any wise resident should be at least familiar with the duties and obligations of CMs, just as a single-family homeowner would want to know the expertise of a plumber fixing their pipes. 

Choosing a CM

On a big capital improvement job, the CM is, in a word, the point-person. He/she answers to the board, (or to whoever the board designates as their agent or agents, such as a building committee), and is essential to running a complex project efficiently when there are multiple phases of work to be completed, or a variety of different contractors involved. 

“There are a lot of different uses of the term project or construction management,” says John Colagrande, project manager with Pennoni, a national engineering and environmental consulting firm based in Philadelphia that does work throughout the region, including in New Jersey. “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.” 

The first question for many communities is whether or not they need a CM at all. Several factors should be considered when judging whether a project needs the help of a construction manager, including the project’s size, the size of the building, project length and cost, and complexity of the project. In the case of minor projects, like a small canopy replacements or a hallway carpeting upgrade, a CM is probably not needed, since a property manager or another professional appointed by the board can likely handle overseeing the job. Larger and more complicated projects, such as perhaps a major façade repair or roof replacement, could run best if managed by a CM. 

“It can be all of the above,” says Glenn Grube, a registered architect who is a program director for Faithful+Gould, a program and management consultant group in New York City. “The more complex a project, the more the building will want to use an owner’s rep [or construction manager]… They should ask if there’s anyone on the building’s staff who has the experience of a CM.”

“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 necessarily 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.” 

Even with a person on the board who has the right experience and skill set, it might not always be advisable for that resident to take the role of CM. The reasons for this are multiple, but chief among them is that it’s generally best to have an impartial outside party overseeing major projects, rather than a resident or board member who may have conflicts of interest that could affect how work gets done. Industry experts agree that a professional or professionals need to guide the project through to successful completion. An architect or engineer should advise regardless; board members should not interact directly with contractors and others on the job.

“It’s foolish for board members not experienced in construction to tackle a project like that. Doing construction management for a project in a building is a full-time job,” says Perry Finkelman, partner and managing director with American Development Group LLC, a West Hempstead, New York-based real estate development company. “Depending upon the complexity of the job [it could be structured] so that the CM hires the general contractor and subcontractor. If it’s smaller scope, a qualified GC can incorporate the tasks of a CM.”

Experts advise those who want to hire a project manager/CM to find a professional who’s done similar work successfully in the past, and who has a wide-ranging experience in construction. The pro should understand the complete project process—design, approvals, permitting, putting projects out to bid, and everything else involving a complex project being undertaken in a building that hundreds – maybe even thousands – of people call home. 

“Practical experience in the field is very important,” says Grube. “Most have worked for construction companies as project managers, architects and engineers. You might find a project management consultant through word-of-mouth and references.”

In some buildings, a property manager could already have a list of CMs that the property has done business with in the past. Some have good lists of CMs and GCs - others do not. Obviously, if the building has such a list that can be relied upon as a starting point to search for a CM, do so.

The selection process starts for a CM before the project begins; even as early as in the bid phase and design phase of the project. On some complex jobs, the CM could help with hiring of the general contractor and subcontractors. It should be noted that a CM should be operating independently of the contracting/building company. A board can choose the best one for their building/project by evaluating their experience, recommendations, and portfolio. “The CM should be brought in to work hand-in-hand with an architect, so [the CM] is totally familiar with the job,” Finkelman says.

But just as you wouldn’t close your eyes and pick a doctor out of the phone book without doing a little homework on them first, don’t just pick the first reputable construction manager out of the hat, says Howard L. Zimmerman, principal for Howard L. Zimmerman Architects, a full-service architecture firm based in New York. “Multiple CMs should be interviewed,” he says, and like any contractor, “The best should be chosen based on experience, recommendations, portfolio and equally, if not more important, personality.”

The duties a construction/project manager may be expected to carry out depends on the job they’re brought on board to handle, and start well before the construction stage. In some cases, that may mean starting out in the bid phase—a complex construction project is like a machine with many parts, and a good CM understands how those parts work in harmony, so he/she is a perfect person to help with even concept stages of the project. 

“In their role as CM or project manager, they manage the cost of the project by helping [the owner or board] set a budget; by helping them set a schedule and stick to it; and by bringing together trade and design expertise—coordinating that,” Grube says.

“A CM starts on the project planning stages,” Zimmerman adds. “If a contractor is already selected, it’s already too late. The CM’s presence on-site is task specific; some phases are more intense than others, and their judgment should determine how often they are on site.”

Expected Performance

Industry pros know there are many moving parts in a complex construction project, including, sometimes, variables that cannot be accurately quantified beforehand. Take for example a building-wide renovation of plumbing in kitchens and bathrooms in a co-op or condo. While it may seem simple enough on the surface, a good CM will know that this job will likely involve some reconstruction due to leaks over the years, dry-rotted wood, and so forth. Such a CM—one with experience earned over many projects—will know to allow for extra dollars in the budget for contingencies, like having to replace structural parts of bathrooms during a renovation.

As the eyes and ears of the board on the project, CMs also review requests for payments from vendors; they’ll deal with any issues that arise daily from residents, schedules and vendors; they’ll inspect and ensure all work is done properly; and they give detailed progress reports to the board and managers so everyone is on the same page as the project progresses. 

Of course, because fee structures of CMs vary and the size of projects differ, it’s tough to give estimates on how much it costs to engage a construction manager. Some charge a percentage of a given project’s cost, others charge x amount per year for multi-year projects, and others charge a flat fee per project. How a particular CM charges is another factor to take into consideration as your board-management team is fielding bids for your own project. 

There are intangibles—in the form of work experience and professional knowledge—that cannot be ascertained on paper when evaluating a CM who’s being considered for a project. Experienced, smart CMs will have enough days on the job to know where to look for trouble well before it happens—even in the design phase. In the case of a lobby renovation, a seasoned CM could evaluate the building’s blueprints and recognize that there are steam lines beneath the floor of the lobby. Since the floor must be torn up for the renovation anyway, and the lines will need to be replaced soon, it would make sense to replace those lines as part of the lobby project, rather than tearing up the floor twice. Experienced CMs see these kinds of potential clashes and opportunities for savings.

Property is an investment, and investments must be handled wisely—which includes knowing who is maintaining that property. The exceptional CM will not only look like a good prospect on paper, he/she will also be one who can recall instances where economies of scale were achieved in projects he/she has  managed, such as with the lobby example. When considering hiring a CM, any board of directors or owner should remember: There is no substitute for experience.         

Jonathan Barnes is a contributor for The New Jersey Cooperator. A former ENR magazine correspondent, he’s also contributed to BuiltWorlds and other AEC trade magazines, and writes about architecture, engineering and construction technology for corporations.