Importance Of Project Management In Commercial Real Estate

If put in simple words, a project manager is a person who takes responsibility for the success of a construction project in every possible way. From planning to implementation, monitoring, control, and completion, he oversees every aspect of the project and makes sure that the targets and budgets are met as expected.

Being in the real estate consulting services domain, we affirm that project management is equally crucial in a commercial project as in a residential one. When it comes to commercial real estate, the initial steps are the same as residential real estate but take place on a much larger scale. These include everything from securing finances, researching available properties, inspecting them to taking permissions, buying a property, and executing construction on it. 

To make these large-scale commercial projects successful, real estate takes the help of project management consultancy firms. Let us read in the following section how these firms play a significant role in making the projects a success.

Importance Of Project Management In Commercial Real Estate 

1. Managing Budgets

Effective project management aims to manage project budgets. A project manager has the following functions to ensure keeping up with the budget:

• Appointing and managing contractors 

• Monitors any increase in the costs due to order modifications

• Prepare and manage a budget for materials

• Release payment to vendors

• Utilize finances effectively and efficiently

• Following other necessary protocols and guidelines

2. Managing Time

A project manager is also responsible to keep track of the time of project activities. These include timely order of supplies, coordinating with the contractors as and when required, taking necessary permits in advance, and so on. By managing the efficiency at work, he prevents projects from getting delayed and helps in reducing costs. 

3. Handling Project Risks

The risk of exceeding budget and time limits is often associated with projects. Here to minimize risks, a project manager is designated with certain duties. He is responsible for exclusively appointing licensed professionals, securing sufficient project insurance, developing and managing effective contracts, etc. By performing these duties and more, he significantly helps in minimizing risks as well as unnecessary expenses.

4. Informing About Issues

When it comes to large-scale projects, public comments, community notices, and like things may be required. Moreover, if the project has multiple owners or investors, it is crucial to communicate the project's progress. This helps develop local goodwill and support. This also assures that local readers approve zoning and permitting and that the project can continue as expected. 

Conclusion

So, this is how project management plays a significant role in executing commercial real estate development. GRC consulting has been collaborating with several professional project management consultants, architects, and developers to successfully complete many large-scale projects. Besides real estate consulting, we also provide liaison consultancy services to our clients. Our team of professionals supports developers at all levels to acquire statutory approvals, regardless of the industry and project domain. Get in touch with us to know more.