Hiring- a Skilled Project Management Consultant [Oct 2011]

Project management involves integrating the entire project team including the developer and the society, and creating synergies that lead to the achievement of the project objectives which revolves around four elements: performance, cost, time and scope. Architect Saurabh Chatterjee highlights the importance of hiring a skilled project management consultantA real estate project involves many interest groups, all skilled in their areas of profession: architects, quantity surveyors, engineers, land surveyors and planners, geologists, environmental experts, contractors, landscapers, real estate agents, lawyers, bankers, statutory bodies (city/municipal councils), among others.
As a co-operative housing society initiates the process of redevelopment of its property, the first legal requirement it needs to fulfil in terms of the relevant circular of the department of co-operation is the appointment of a skilled project management consultant (PMC). The appointment of a PMC lays down the foundation of the entire redevelopment process as successful completion of redevelopment largely depends upon the ability, integrity, uprightness and transparent and reasoned approach of the PMC. A PMC refers to a Project Management Consultant and is generally associated with architects, engineers and quantity surveyors.
The PMC should be well equipped with project management skills, basic technical understanding, aware of all legal and construction aspects of redevelopment and the redevelopment business so that he applies his knowledge and imagination to various stages of redevelopment in a manner that the society gets the best terms without compromising with safety aspects and has the necessary social skills to manage the many different interest groups involved in the project.
Although the nature and quantum of redevelopment services to be provided by a PMC would differ from case to case, a generalised model list is presented below as prepared on the basis of experience of PGV Project Management Consultants. A society may select all or any of the services depending upon facts of its case and after interaction with the PMC.
Requisites of a good PMC:• PMC needs to have a thorough knowledge of the DCR and the Bye laws of the Government• PMC should have the entire know how of the Redevelopment including the processes involved• PMC should have the liasoning experience with the BMC and should be very well versed with any changes/circulars from the authorities• Should have a professional team to provide all the services to the society and his approach should be of the most transparent one without any vested interest• Should act as a mentor to the society where in he should look into the society’s interest as a priority• Should be a guiding force for the members with a holistic approach till the end• Should adopt proactive methods in solving all the problems of the members• Should provide the society with a realistic feasible report which will help the society to know their expectation and the demand from the developer• Should resolve all the issues in the most amicable way and also plan the processes in the right and a fool proof manner• Should be at the disposal of the society during the entire period of construction and should advice them towards the quality/speed and efficiency of the developer• Should be a neutral person in the society and should not favour any of the party in Redevelopment• PMC is basically the Society’s consultant and should act as the most professional person well equipped with all the requirements of the society with respect to the Redevelopment
A project cycle is made up of four phases namely the initiation, planning, execution and close-out/termination phases. Each phase is critical to project success and should be managed professionally and in consultation with the relevant parties. A project manager undertakes the feasibility study for a proposed project and the report is based on objectivity and facts. PMC should also help structure the project’s financial structure to ensure the projected return on investment and equity is adequate and achievable.
In the planning phase, costs and time lines/schedules are drawn up and used as the baseline during monitoring and evaluation. The PMC should strive to ensure that there are no variations between the actual versus planned costs and time lines respectively. Cost management through the direct contracting of specialists and sourcing of ‘client supplied’ items is one way of reducing project costs. Determining a project’s critical path is vital to managing the time element in a project. The critical path items are those that require special attention and should be completed within the prescribed duration times. A project manager should ensure that the project meets the quality standards as set out, is completed within the budget and on time, and as per the defined scope of works. The PMC in no circumstances should influence the appointment of the final developer. He should always be an advisory consultant who shall guide the society to appoint the best of the short listed contender for the society’s redevelopment.
But one has to understand the skill, experience and the quality of services and the scope of work offered, as PMC’s vary, thus it is advisable to see what the requirement of the society is. Some PMC’s charge on a lump sum basis, some charge on project cost, while few others charge on a square foot basis. The fees, based on the services availed, range from two to three per cent of the cost of construction of the entire project. Some charge on the basis of different services and in stages such as preparing feasibility report, obtaining the documents like property card, city survey plan, development plan remark, aviation NOC, survey report, measurement, preparing the tender, tax planning, supervision, structural verification, approved plan verification, vetting of various documents, and preparing documents. Therefore, the society should prepare a list of services required from the PMC and call for the quotations from different well-known skilled PMC’s only.
The baseline being it is very important for a society to adopt a PMC with professional architects and a team of engineers instead of unskilled contractors only add to cost and take away from the quality, to ensure getting a better job done and ensuring transparency. The PMC’s profile needs to be scrutinized and appropriate references should be taken. The team comprising of the legal solicitors, licensed surveyors, and civil engineers should be checked and confirmed before handing over the project.
A PMC’s to DO’s:• Make a presentation to the society• Quote the fees along with the entire breakup of the payment schedule• Check the relevant documents of the society like PR Card, CTS Plan, DP Remark, Conveyance Draft Agreement, RL Remark before floating tenders• Conduct the plot survey• Prepare the carpet summary of the existing members• Conduct various meetings with the committee• Get the structural audit report to check whether the M20 forms and any other relevant forms are registered with the societies• Provide with the feasibility report along with the plan of possible• Suggest the various amenities for the new structure• Prepare the Tender Draft and discuss and finalize the same with the members• Invite tenders on behalf of the society• Scrutinize the same and prepare the comparative statement • Shortlist the probable developers not on in terms of commercial offers but also bankers , balance sheet, man power of company, construction source etc.• Conduct meetings with the developers and the society committee• Co-ordinate site visits for the members to the short listed developers projects• Arrange for the presentations• Arrange with the Registrar meeting and also get the consent letter from the members in the name of the society.

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