Best PM Practices in Real estate Industry

Head 1:  Role of PMC in the Real Estate Industry

The real estate industry is segmented into Residential, Industrial, and Corporate sectors including Schools, Hospitals, Hotels and IT Buildings, etc

To manage such big or small projects and projects with specific requirements like piling of very tall structures etc, we require expertise within organizations, if not, external advice, and thorough knowledge.

PMC, internal as well as external, plays important role in projects and provides effective management solutions to increase and improve the efficiency and outcome (in terms of cost and time) at every stage of the project life cycle (i.e. from inception to completion of projects if PMC appointed timely) and creating a win-win situation for all stakeholders

PMC manages the Project by application of their Knowledge, Skills, and Experience at various stages. However, at the same time, PMC also has to face various challenges like Design Issues, Constructability Issues, Long lead material Issues, Inter Contractor Coordination Issues, Engineering Issues, Safety Issues, etc which can be tackled only by a well-organized and multi-dimension approach of the PMC.

Head 2: Current Practices followed by Developers

Earlier, the realization of PMC was missing in the Real estate industry. From the new year 2012 onward, it has been observed that Developers understand the necessity of PMC in the Real Estate Industry majorly for Schools, IT-ITES, Commercial, Hotel, hospital projects, etc.

Still, there are not many housing projects where PMC is appointed except for a few big projects.

The following practices are observed which are followed by Developers currently-

1. Not giving time at the planning stage i.e giving maximum input during the Construction stage.
2. Starting a project without a set of GFC Drawings from Consultants
3. Run a project without a sufficient technical team i.e to avoid cost overrun
4. Appointment of  poor grade contractor to save money, which ultimately affects the quality of the project and causes more wastage due to repair, rework, and improper management
5. Neglect safety, housekeeping and government rules ( like NGT, use of Groundwater, SHE Policy, labour law, etc )
6. Doing delay in project handover even after a good sale

It is also observed that PMC is appointed by Developers like DLF – M3M – Godrej – Tata due to the compulsion of the funding agency. In such cases PMC act as 3rd eye for the funding agency.

Head 3: Best PMC Practices which will bring better construction quality

Followings steps to be followed

• Maximum effort to be given during the planning stage (say 80%)
  • Appointment of Principal Architect, Structure, MEP, and other Consultant  for effective design management
  • Ensure effective team size for Planning, Construction, and Post Construction stage
  • Ensure perfect BOQ, effective tender document, and proper vendor selection for Civil – Electrical-Plumbing-Mechanical and landscape by a competent team
  • Ensure 5 M ( machine, material, men, money, manpower  ) planning
  • Ensure site logistics considering the next 3-5 years of planning
  • Ensure effective cost plan, schedule
  • Ensure formats and checklists for effective monitoring and control
  • Plan Responsibility matrix with KRA and escalation level
• Construction stage
  • Deployment of a competent team  in phase as perManagementCharter ( Target, Schedule, Budget )
  • Ensure guidelines for housekeeping, safety, quality
  • Use of software to manage project
  • Ensure daily report ( DPR ) by Team Leader in the evening with NC
  • Ensure weekly and monthly meetings at a different level with Management,  Consultants, Contractors and Team
  • Ensure timely payment of vendors considering all statuary requirements like PF-ESI-Labour issues / also track 3rd party liability
  • Effective Contract Administration i.e settling any claims and any disputes timely
  • Ensure timely audit for Billing, Quality, and Safety by 3rd party like Finance Audit
  • Ensure training program for the project team

Note :

1. PMC is the most effective and efficient when it is involved in the Total Project Life Cycle i.e from Inception to Completion.
2. Good PMC can contribute savings by doing Value Engineering
3. PMC should work as an independent agency and should only be answerable to Top Management
4. The Scope of PMC should include anticipation of issues and timely action