Whether you are building from the
ground up or renovating existing
space to suit your business’s needs, new construction is never cheap. From
materials to systems expertise to labor,
owners need to be prepared to look for
savings in every aspect of the project.
This is where project management — or
process management, as Bob Toryak of
CresaPartners likes to call it — becomes a
vital part of meeting your company’s needs
without exceeding your budget.
“A project manager should be a true
advocate for the tenant, from the start of
design through construction administration, and finally with restoration/close-out
of prior space,” he says.
Smart Business spoke to Toryak about
some of the hurdles owners will need to
overcome during construction and how a
project manager can help to identify savings.
What kinds of factors affect construction
costs?
Costs can increase as a result of the economy. For example, copper went through a
significant price increase last year. This
year, costs have settled down. Dry wall is
increasing in cost because of the energy
costs to manufacture it, which has also
affected the costs of other construction
material. When Katrina hit, we had a big
shortfall with many products. For example, on the electrical side, main panels for
office space required a 17- to 20-week lead-time. These lengthy lead times can impact
the clients’ move-in schedule.
What can be done?
We listen to our clients to understand
their culture and needs. If management is
changing to an open landscape plan, the
use of wall systems that are premanufactured is a solution. Additionally, they can
take the panels with them when moving
again. The panels incorporate fabric and
glass for aesthetics and, at the same time,
provide flexibility for reconfigurations.
They are more costly, but the client can
write them off over the term of their lease
and realize tax savings.
As far as IT infrastructure, this can be
more difficult. There are ways to get the
same quality cable, but maybe with a different manufacturer. A lot of the cable has
been imported from Europe. Clients have
specifications they require, but they can
get the same compliant quality without
having to pay an extra 25 percent more for
brand-name cable.
When should a project manager step in?
One of the most important things we try
to do is get involved in the very beginning
of a project. A project manager acts as a
liaison with the client, the landlord and the
contractors through the bidding process.
Starting with the design process, a project
manager can save clients money on the
various tasks, such as architectural and
engineering fees, wiring/cable and general
contractors, as well as furniture and move
coordination. A project manager can save a
client anywhere from 27 to 36 percent, on
average, in the Philadelphia region. We recommend that even if they do not engage
CresaPartners, that they make sure that
they have someone who has experience in
various disciplines such as voice and data
infrastructure, construction work, furniture systems and even financing. With that
experience, costs can be driven down and
the process far less complex.
How might a project manager help to find
other savings?
For most clients, the biggest expense outside of the rent and tenant improvement
allowance is furniture. All major contract
furniture manufacturers have various lines
of product at variable price points. You
have to find out what the clients want. Are
they design-conscious, just looking for
functionality, or is there a tight budget to
consider? Furniture can cost anywhere
from $20 to $25 a square foot for brand-new, mid-price furniture and significantly
more if they want high-end, designer furniture. Each manufacturer can bring the
price in line to meet the client’s needs.
In the Philadelphia market, many of our
clients are biotech, technology and health
care companies that look at sustainability
and green building construction for LEED
Certification. As the project managers for a
client, we encourage the use of products
that are sustainable. A sustainably designed interior has many benefits, including energy savings and increased employee
productivity.
The bottom line is that you need to listen
to your clients for their specific needs and
expectations so that the project can meet
their goals, schedule and budget.
BOB TORYAK is director of Project Management with
CresaPartners. Reach him at [email protected] or (610)
825-9564.
