In today's "Tuesday Morning for Construction," we'll share our observations on the role of the project manager in the construction process. This institution isn't mandated by law, but rather stems from a practical need to support the investor, and is governed by the principle of freedom of contract between the investor and the project manager. While no two contracts are likely identical, a certain scope of the project manager's rights and obligations is beyond doubt.
On many projects, the project manager plays a key role in the construction process, representing the lead investor in contacts with architects, contractors, suppliers, and other stakeholders. Their duties encompass a wide range of responsibilities aimed at ensuring the proper execution of the construction project and its implementation according to plan.
One of the most important responsibilities of the project supervisor is overseeing project implementation. They monitor the progress of construction work, ensuring it is carried out according to the established schedule and technical documentation. This ensures that the lead investor is confident that the work is progressing according to plan, both in terms of time and quality of workmanship.
The project manager may also be responsible for cost control. They manage the project budget by monitoring expenses and preventing overspending. When costs begin to escalate, the project manager may have the authority to negotiate prices with suppliers and contractors to keep the project within budget.
Another key aspect of their work is ensuring compliance with regulations and standards. The project manager ensures that all work is carried out in accordance with applicable laws, technical standards, and quality standards. This minimizes the risk of future legal or technical issues.
A key element of the project's supervisor's role is coordinating the activities of project participants. They collaborate with designers, contractors, suppliers, and other stakeholders to ensure the project's smoothest possible implementation. Proper coordination among all participants is crucial to avoiding delays and disputes on the construction site. The supervisor may be authorized to represent the lead investor in contacts with government agencies, financial institutions, and other external entities. In such cases, they act on the lead investor's behalf, making decisions and resolving issues, allowing for the project's smooth implementation without the need for the lead investor's direct involvement in day-to-day matters.
Furthermore, the project manager can assume risk management responsibilities. They identify potential risks related to project implementation and take appropriate actions to minimize them. This minimizes the risk of delays, budget overruns, or technical issues.
The project manager is, of course, responsible for submitting regular reports to the lead investor, including information on work progress, financial status, potential problems, and proposed solutions. Typically, such reports are generated monthly.
Hiring a project manager certainly offers many benefits, but it also carries certain risks. Firstly, the cost of engaging a project manager increases the overall project cost. Secondly, when selecting a project manager, it's always important to verify their qualifications and experience, including that of individual team members. Furthermore, it's worth ensuring in the contract that the team's composition remains constant throughout the project, and in the event of any changes, the new team member will have at least similar skills. It's also crucial that the project manager's contract clearly defines the project manager's liability and the procedures for pursuing such claims. The project manager should also have liability insurance appropriate to the value of the entire project, and this should be verified when signing the contract.
A project supervisor is an entity whose role in the construction process, if any, is invaluable. When an experienced project supervisor is engaged, their knowledge and experience should ensure that the project is completed as intended, without the investor having to engage in day-to-day construction activities.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 19, 2024
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