*
I’ve done several remodeling and building projects of my own — and every time have been asked by the various sub-contracting crews to start my own project management business. Until recently I never considered it seriously. But, now I’m beginning to think — Why not? But, before I get carried away, I need to know the ins and outs of this business. Like how do you charge for this service? What advice do any of you have on writng contracts? What are some of the things I need to be aware of? In my area no one offers this kind of service, yet there is a need for it. What advice do any of you have on getting started?
Discussion Forum
Discussion Forum
Up Next
Video Shorts
Featured Story

Discover a drywall-free approach to refinishing a partially demoed wall.
Highlights
"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.
Replies
*
Lulu,
Sounds to me like you are a general contractor.
Go forth and prosper.
Ed. Williams
*Sorry Lulu,With the number of questions that you don't have answers to, I think you would be better advised to stay in the scale of house building you're presently engaged in.Gabe
*sounds like you need to get a general contractors license in your state and learn how to bid jobs. start with small ones and work your way up.
*Ah come on Gabe,Finding the answers is the easy part. Figuring out what the questions are, now that's tough. If she takes you to the new woodshed and buys you a beer I'll bet you spill your guts. Still glad you suck at politics. Meet you there. You're right, TGIFJonC
*
You are probably right --- this is a career path where I would definitely be in way over my head. But, after your responses to my original question I have to ask --- what is the difference between a general contractor and a project manager??? And if I was to hire one or the other for a remodeling or building project what should I expect of them? I've always done my own hiring, scheduling, supervising, etc. Is this work that is normaly the responsibility of a general contractor or project manager?
*
Hi Lulu,
A real Project Manager, is the owner's agent or representative. He or she brings extensive construction and management experience to the table. He does not do any of the work or take on any other contracts on the site other than represent the owners. He prepares the budget, schedule, contracts, tendering and supervises the construction to ensure compliance. He protects the owners.
A general contractor, is a builder of the home or part of it. He cannot assume the role of a project manager during construction. He has his own interest in the profit aspect of his operation and his decision making is affected by this fact. Many will claim to do both, but NONE can do both, effectively.
Gabe
*Gabe,How do project managers bill? By the hour, flat rate or percentage of the project? I remember years ago, my first serious encounter with an architect, when he told me he billed on a percentage of the total project, the first words out of my young flippant mouth were, "do I look stupid?"Now I realize that reputation and a desire for future business might have motivated him to keep the costs down, but that percentage thing does require a measure of trust. As opposed to some, in many ways I think I've gotten more trusting as I've gotten older, but it's a highly individual thing.JonC
*Hi Jon,Typically it's based on the size of the job and the level of supervision required at site.Most jobs in residential require the same basic components. Drawings have to be approved, contracts are normally standard forms, budgets have to be prepared and detailed scope of work has to be at the ready.The big variable is the time required at site.On a house, $300,000.00 value and above, a management contract would be for $15,000.00 (5%) flat fee for the work contained in the first paragraph and a fixed number of site visits to ensure compliance by the trades and to approve payments.If the client wants you on site more as a site superintendent, then you would charge an additional hourly rate or weekly rate equal to standards in your area. On larger sites you will contract out this job or assign a site foreman.A lot of this is based on complexity and required level of input. Most times a project manager will contract an architect to interview (in his presence) the client and produce the conceptual drawings and once approved the working or final set for the house. You have to appreciate, that a good project Manager will protect his client from all trades, including architects and engineers.Gabe
*
I've done several remodeling and building projects of my own --- and every time have been asked by the various sub-contracting crews to start my own project management business. Until recently I never considered it seriously. But, now I'm beginning to think -- Why not? But, before I get carried away, I need to know the ins and outs of this business. Like how do you charge for this service? What advice do any of you have on writng contracts? What are some of the things I need to be aware of? In my area no one offers this kind of service, yet there is a need for it. What advice do any of you have on getting started?