The Project manager is called in by financial institutions / developers or individuals, who have financed the project, either to coordinate the development and report monthly or once the project has run into problems to carry out an investigation to the development and possibly a feasibility study there after and submit its report so that decisions can be made and place the development on track.
The Project Management in a summary, has the main duties which include the following:
- Coordinate all consultants, so that the various drawings and specifications are produced on time and have full details.
- To examine such drawings and make sure that these reflect the client's and market requirements and budget cost.
- To seek tenders, negotiate and suggest to the client the most suitable contractor, suppliers and sub-contractors.
- To chair site meetings and keep a constant watch upon the development process, keeping records, minutes etc., and in general administer the construction process.
- To coordinate the quality control of work executed and materials, in parallel with the supervising architect.
- To liaise with the public authorities for the supply of public services and sort out any problems/delays.
- To coordinate with the financiers and vet payment certificates to the Bank in conjunction with the project Quantity Surveyor.
- To deliver the project within the time and budget originally set and provide the client with alternatives if there are cost/time overruns.
- To secure the final certificate of approval/title deeds by the authorities, including the follow up of the red tape needed for the title issue.
The use of the P.M. in the Cyprus building industry, refers mainly to large projects, since small scale jobs may be costly to employ this consultant, although he is becoming very popular with high-cost private home investors and especially with foreign people who are not here to look after the development progress. The P.M. has a good future in the local building industry, and it is used both by the private market and the Government more and more. The P.M. is especially appropriate for the offshore/foreign clients, who are not aware (neither have the time) of the local details/ conditions in the building process.
The P.M. should at the end of the day save considerable cost and reduce the owner's headaches (and everybody else’s). As a rule of thumb, from our own experience, the client should save 2-5 times the P.M. fee, if the P.M. is reasonably successful.
The average cost of a P.M. is approximately €1000 - €3000 p.m. depending always on the size of the project and the required service.
If for example, the client requires the P.M. to retain a full-time site agent and a quality controller, you must appreciate that the costs will increase. For larger projects you can estimate a fee of 1%-2% on the total cost.
The main services which the property management provide are:
- To keep all services available to the project in working order in order for the owners to have access and enjoy the quality of the services offered by the project.
- Keep proper accounts of all expenses regarding the offered services.
- Pay all invoices regarding these services.
- Monthly / three monthly statements of all the expenses incurred.
- Collection of these expenses (common fund) after allocation for each unit the cost, based on the area of each unit.
- Take necessary action so that non-paying owners do pay their Common –Expenses allocations, with letters, telephone calls etc.
- Take legal action for non-payment and present to the Court the necessary documentation in order, to get a court decision for payment.
- Take tenders for repairs/maintenance of the services.
- Accept, the most cost-effective offer and agreed terms of payment.
- Supervise the work executed and where necessary coordinate supervision with Architect and /or Civil engineer,
of the project.
- To engage and supervise staff where necessary, such as gardeners, plumbers, electricians, etc.
- To engage and supervise permanent staff such as project supervisors and gardeners.
- Chair annual general meetings and present accounts to all the owners and hear views, problems, and suggestions for the project.
In general, it is the function of the Administrator to inspect on a continuously (short periods) the project and earmark necessary repairs and maintenance.
The fees (charges) for the above services by the Administrator, vary between €10-200/unit/ month, depending on the size of the project, units, distance from town, requirements by the project, etc.
The obligations and functions of the Administrator are under the Law for Commonly Owned Properties of the year, 1993, which the Administrator must abide by.