Real Estate Projects: It All Comes Down to Budget

New real estate projects are very exciting prospect for organizations, as the thought of a “new home,” updated facilities, cutting-edge technology and internal changes only just scratch the surface of opportunities to be expected. Depending on your internal project team’s size, several employees, managers or committees may have direct effects on the course of your real estate projects.

With this newfound excitement within the company, everyone hopes his or her facility upgrade visions will be adopted and validated, even ultimately implemented as part of the new endeavor. For instance, your C-suite may want more conference room space; your marketing team is hoping for larger desks; and you hear requests for an in-house gym, closer parking, bench seating, more breakout rooms, kitchen upgrades with a full espresso bar, etc. Unfortunately, like most “wish lists,” your budget and/or available funding will ultimately determine what is but a pipedream, and what is actually possible during your real estate project.

A well-experienced project manager with broad knowledge of building materials, present market trends, and current construction costs, will be able to quickly determine what upgrades are feasible and which are  not. To help decide what is possible and what is simply out-of-budget, your project manager, in collaboration with the project architect and contractors, can create  scopes of work designed to provide a budget for those items already deemed possible as well as those that may be headed to the chopping block.  Armed with this information, a realistic budget number can be approved, and upgrade expectations can be set.

A company that hires an experienced project manager will ensure cost-effective delivery on project expectations, as well as financial feasibility of particular upgrade proposals. A third-party project manager will be free of conflicts and will work solely on your behalf to ensure you get the most upgrades for your budget. Through cost mitigation, bid-leveling and creative thinking, an experienced project manager will be able to help determine what project scope upgrades are not only possible, but how to implement them as cost effectively as possible; thus, ensuring you are delivered the maximum project upgrades within your budget.

Stephen Fean
Stephen Fean is the Vice President of Business Development at Watchdog Real Estate Project Managers, a real-estate consulting firm that provides owner’s representation and project management services. More about Watchdog Real Estate Project Managers as well as additional blog posts can be found here.
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