How Much Does it Cost to Hire a Project Manager?
Planning a renovation? Have you factored in the cost of organising it all yourself versus paying a professional?
Project management is a service provided by standalone project managers, architects and interior designers, with each typically offering a slightly different emphasis. It may seem as if paying for someone to manage your renovation is a luxury. Is that true, though, when you take into consideration the hours of research, the emergency trouble-shooting when you’re in an important meeting at work, the peace of mind it can give, and, of course, the savings that, as a non-professional, you may not be able to access?
Here, three experts explain how the money on project managing gets spent and reveal how much it actually costs.
Professional advice from: Cat Hoad of Absolute Project Management; Eamonn Agha of Huntsmore; Cathy Dean of Cathy Dean Interior Design.
Also in this series: How Much Does it Cost to Hire an Architect?
Here, three experts explain how the money on project managing gets spent and reveal how much it actually costs.
Professional advice from: Cat Hoad of Absolute Project Management; Eamonn Agha of Huntsmore; Cathy Dean of Cathy Dean Interior Design.
Also in this series: How Much Does it Cost to Hire an Architect?
“It depends on the extent of the service required,” Cat Hoad says. Her charges are different for each stage.
“We normally charge an hourly rate for the design and preparatory stages (we provide estimates in advance of how long each ‘slice’ of design/ preparation will take, so it’s clear in advance what you’re signing up for).
“We then charge a percentage, based on the build cost, for the period when the building works are actually [taking place] on site.”
She goes on to give examples of when the hourly rate costs can vary. If, say, clients already had Planning Permission and structural drawings, there’d be less preparatory work, so the charge would be less.
“Some clients want help with every aspect of design – colours, flooring, bathrooms, but also ironmongery, remote-control blinds, AV systems and so on,” she says, “and also want us to negotiate on their behalf with freeholders, management companies etcetera. That takes a lot longer than a client who’s already chosen their bathroom design, tile spec, paint colours… This hopefully illustrates how the price can differ significantly.”
“We normally charge an hourly rate for the design and preparatory stages (we provide estimates in advance of how long each ‘slice’ of design/ preparation will take, so it’s clear in advance what you’re signing up for).
“We then charge a percentage, based on the build cost, for the period when the building works are actually [taking place] on site.”
She goes on to give examples of when the hourly rate costs can vary. If, say, clients already had Planning Permission and structural drawings, there’d be less preparatory work, so the charge would be less.
“Some clients want help with every aspect of design – colours, flooring, bathrooms, but also ironmongery, remote-control blinds, AV systems and so on,” she says, “and also want us to negotiate on their behalf with freeholders, management companies etcetera. That takes a lot longer than a client who’s already chosen their bathroom design, tile spec, paint colours… This hopefully illustrates how the price can differ significantly.”
Can hiring a project manager save you money?
Although it may seem like an added expense to hire someone to manage your renovation, that’s not necessarily the case.
“I tell clients that it is, upfront, an additional cost,” Cat says. “However, if a project is properly planned, with agreed and detailed plans and all fittings etcetera chosen in advance and priced in detail, there’s far less scope for things to go wrong on site, unexpected problems to arise, mistakes to be made or delays to be encountered due to lead times and so on.
“All these items can – and usually do – lead to additional costs and time delays, which in some circumstances will cost money,” she says.
Looking for a company that offers project management in your area? Search ‘project management’ on Houzz.
Although it may seem like an added expense to hire someone to manage your renovation, that’s not necessarily the case.
“I tell clients that it is, upfront, an additional cost,” Cat says. “However, if a project is properly planned, with agreed and detailed plans and all fittings etcetera chosen in advance and priced in detail, there’s far less scope for things to go wrong on site, unexpected problems to arise, mistakes to be made or delays to be encountered due to lead times and so on.
“All these items can – and usually do – lead to additional costs and time delays, which in some circumstances will cost money,” she says.
Looking for a company that offers project management in your area? Search ‘project management’ on Houzz.
“Older properties can have a lot of hidden historic issues,” Eamonn says. “Anticipating things such as rotten floor joists, lath and plaster ceilings, and old pipes and electrical work ahead of construction starting, and building in contingencies early on, is a prudent way to avoid budget overrun.
“Project managers can also negotiate more favourable rates on fixtures and fittings – for example, glazing is always an expensive consideration,” he says. “[This] can lead to material savings.”
“Project managers can also negotiate more favourable rates on fixtures and fittings – for example, glazing is always an expensive consideration,” he says. “[This] can lead to material savings.”
How big should a job be to justify a project manager?
“In my view, this depends entirely on how much you need it,” Cat says. “If you have no time or inclination to do your own project management, or doing so will put strain on your health/ hours you sleep/ relationships/ day job, it’s invaluable if done well, almost regardless of the size.
“However, if you’re working with a small budget, it may be that the project management fees form too large a percentage of the overall cost to be worthwhile,” she says. “I think it’s to do with the value the client feels is added, if they can afford it.”
Cathy suggests that a project involving the whole floor of a property, rather than just one room, tends to be better value in terms of management fees.
“In my view, this depends entirely on how much you need it,” Cat says. “If you have no time or inclination to do your own project management, or doing so will put strain on your health/ hours you sleep/ relationships/ day job, it’s invaluable if done well, almost regardless of the size.
“However, if you’re working with a small budget, it may be that the project management fees form too large a percentage of the overall cost to be worthwhile,” she says. “I think it’s to do with the value the client feels is added, if they can afford it.”
Cathy suggests that a project involving the whole floor of a property, rather than just one room, tends to be better value in terms of management fees.
There are often other reasons why a client might call on the services of a project manager. “We’ve undertaken relatively straightforward build projects where the client hasn’t been in the country for the entire build, and therefore project management was essential,” Eammon says. “We’ve undertaken other jobs where the client works long hours and needs a professional to take ownership of the build.”
Also check out what happens when you hire a project manager for your renovation?
Also check out what happens when you hire a project manager for your renovation?
When is project management the most worthwhile in terms of investment?
As already stated, if overseeing a project yourself is going to cause you to lose more sleep than you can spare, it might be the answer. That said, when weighing up the pros and cons for a particular project, some will warrant the spend more than others.
“It’s invaluable when you have a large project,” Cathy says. “We bring with us years of expertise in terms of problem-solving, we ensure the design remains the primary focus of anything we do, and we also know the tricks of the trade to make you savings.”
Project managers will sometimes also be able to pass on their trade discounts, as well as advising clients how best to split their budget across a project.
As already stated, if overseeing a project yourself is going to cause you to lose more sleep than you can spare, it might be the answer. That said, when weighing up the pros and cons for a particular project, some will warrant the spend more than others.
“It’s invaluable when you have a large project,” Cathy says. “We bring with us years of expertise in terms of problem-solving, we ensure the design remains the primary focus of anything we do, and we also know the tricks of the trade to make you savings.”
Project managers will sometimes also be able to pass on their trade discounts, as well as advising clients how best to split their budget across a project.
How are fees allocated across different parts of a project?
There is no definitive answer to this. As a rough guide, Cat says, “For most clients, where we’re doing all the design, preparation and on-site project management, and assuming these stages take three to four months, I’d say 35% of our total fees are for the pre-on-site phase and 65% when on site, charged in instalments during the build.”
There is no definitive answer to this. As a rough guide, Cat says, “For most clients, where we’re doing all the design, preparation and on-site project management, and assuming these stages take three to four months, I’d say 35% of our total fees are for the pre-on-site phase and 65% when on site, charged in instalments during the build.”
Cathy explains how her company allocates the fee for a full project management service by splitting it into three phases, with the first two phases being fixed fee.
The initial stage is confined to layouts and spatial planning. “We make sure the rooms work, furniture fits, views in are attractive and, most importantly, the space works for the client,” Cathy says. “This is usually around 20% to 30% of the total fee.”
Phase two is design. “[This involves] planning out each of the rooms, selecting all floor and wall finishes, sourcing products, designing and choosing lighting, designing bespoke joinery, collating samples and visualising the spaces, and creating texture boards, product boards and detailed spec sheets,” she says. “This is around 30% to 40% of the total fee.”
The final phase is the most time-consuming, Cathy explains. “It can be somewhat open-ended, as projects do on occasion overrun. In this phase, we create detailed packs for each of the trades, with technical drawings for all elements and visuals to bring it to life. We manage the on-site briefings and work alongside teams problem-solving to ensure the design remains as presented. We also manage all product orders and storage of items, plus an on-site styling day at the end of the project to ensure the client’s home is staged perfectly. This accounts for around 50% to 60% of the fee.”
The initial stage is confined to layouts and spatial planning. “We make sure the rooms work, furniture fits, views in are attractive and, most importantly, the space works for the client,” Cathy says. “This is usually around 20% to 30% of the total fee.”
Phase two is design. “[This involves] planning out each of the rooms, selecting all floor and wall finishes, sourcing products, designing and choosing lighting, designing bespoke joinery, collating samples and visualising the spaces, and creating texture boards, product boards and detailed spec sheets,” she says. “This is around 30% to 40% of the total fee.”
The final phase is the most time-consuming, Cathy explains. “It can be somewhat open-ended, as projects do on occasion overrun. In this phase, we create detailed packs for each of the trades, with technical drawings for all elements and visuals to bring it to life. We manage the on-site briefings and work alongside teams problem-solving to ensure the design remains as presented. We also manage all product orders and storage of items, plus an on-site styling day at the end of the project to ensure the client’s home is staged perfectly. This accounts for around 50% to 60% of the fee.”
What are the main cost variables in project management?
“They are huge!” Cathy says. “Size of space, amount of room reworking and build work, client taste…”
“The main driver of cost is how much of the service clients need and how much they’re happy to do themselves,” Cat says. “Work on a fairly new property that hasn’t previously been converted or structurally altered is usually less time-consuming, as there are fewer ‘unknowns’ – ie, ‘Is that wall definitely non-structural?’ or ‘Does this wall have any foundations to speak of?’”
“They are huge!” Cathy says. “Size of space, amount of room reworking and build work, client taste…”
“The main driver of cost is how much of the service clients need and how much they’re happy to do themselves,” Cat says. “Work on a fairly new property that hasn’t previously been converted or structurally altered is usually less time-consuming, as there are fewer ‘unknowns’ – ie, ‘Is that wall definitely non-structural?’ or ‘Does this wall have any foundations to speak of?’”
All agree that the location of a property can also be important in terms of the variables.
“We undertake a lot of projects in period mansion blocks in the centre of London,” Eamonn says. “Logistically, these require much more input and coordination than, for example, a detached house outside of a major city.
“One apartment project we worked on in Victoria required coordination with abseil teams to assist on repairing the exterior pipework, complex scaffolding requirements, and liaison with the building’s management company and other flat owners,” he says.
“We undertake a lot of projects in period mansion blocks in the centre of London,” Eamonn says. “Logistically, these require much more input and coordination than, for example, a detached house outside of a major city.
“One apartment project we worked on in Victoria required coordination with abseil teams to assist on repairing the exterior pipework, complex scaffolding requirements, and liaison with the building’s management company and other flat owners,” he says.
“The finishing materials can also be a cost variable,” Eamonn continues. “We had one project where we built a rear extension to house an en suite, and every fixture and fitting in this new bathroom was bespoke.
“Despite the room being relatively small, the project required massive amounts of coordination with all suppliers to ensure everything was going to be delivered on time,” he says. “Had the fixtures been standard items, this would have required less management.”
Tell us…
Have you used a project manager before? What were the benefits? Share your thoughts in the Comments section.
“Despite the room being relatively small, the project required massive amounts of coordination with all suppliers to ensure everything was going to be delivered on time,” he says. “Had the fixtures been standard items, this would have required less management.”
Tell us…
Have you used a project manager before? What were the benefits? Share your thoughts in the Comments section.
“This is always a tough one, as it’s not something we can give a fixed quote on,” Cathy Dean says. “You just never know what’s going to come up when you start a project, but we tell people to budget approximately 15% to 20% of the project cost to cover the fees.”
“The cost will depend on the scope and scale of the project,” Eamonn Agha says. “If a build is particularly complex, with lots of variables to consider and coordinate, then the cost is likely to be more than a straightforward build. We operate on a fixed-fee basis, based on the anticipated number of hours/days/weeks the project is likely to take.
“Despite operating a fixed-fee model, our fee works out at approximately 12% to 15% of the total project cost,” he adds.