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Building.hk

Weekly, Hong Kong
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Project managers should treating the project owner's money as their own

Apr 23, 2012
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When it comes to construction management, honesty is the best policy. Both Jeff Stephenson of Chiyoda and Timothy Galarnyk of Construction Risk Management Inc believe that transparency allows construction projects to run smoothly and helps to identify the needs of the project owner.
Jeff Stephenson, EPMC Specialist, for Chiyoda provided insight into the many new and exciting potential ways that are up and coming in the EPC world.
“From technology to global outsourcing however there is one thing that could make a major impact and it does not have to be developed or created. It is just a change in policy and mindset of owner/investors. Simply stated, it is the opportunity for all stakeholders to be honest with each other on realistic costs and durations.”
“If everyone would just be honest with each other and not try to paint an overly optimistic picture on things, you would be amazed at what would happen. I am particularly talking about the pricing and selection process for EPC. I have personally witnessed on numerous occasions that unsuccessful bidders have been spot on pertaining to duration and cost of a project. They were disqualified for being too expensive or proposing durations perceived as excessive but at the end of the day, if they had been selected they would have delivered the project on schedule and on budget and all the back and forth negotiations, cure notices, angry progress meetings, etc. would have not happened,” said Stephenson.


So what should construction project managers do?

Timothy Galarnyk, CEO for Construction Risk Management, explained that the first thing that construction project managers should do is to begin treating at the project owner’s money as their own.
“The future is trending toward delivery of a construction project that is what the owner NEEDS and not what some engineering company wants the owner to have. The owner is generally not sophisticated about construction and therefore currently relies on an engineer or architect. Engineers and architects do not construction anything. They design and engineer projects - the project manager must take the design and the engineering and "BUILD" the project. Many times, these functions conflict with the engineering and design winning out at a loss to the owner. In the future, a project manager who can meet the owners NEEDS in a safe, efficient and productive manner will reap the benefits ten-fold,” said Galarnyk.
Jeff Stephenson and Timothy Galarnyk will be speaking at the Construction Project Managers' Congress. This event will delve into many of the difficulties that project managers face on a daily basis. Global industry leaders will discuss everything from pre-project planning to stakeholder management. Please enquire at enquiry@iqpc.com.sg for additional details.


About IQPC Worldwide:
For over thirty years, IQPC has helped the world's leading corporations solve their business challenges through the sharing of practical industry solutions and global best practice. In the process, the company has built a formidable reputation for quality and value. The world’s most progressive companies have benefited from IQPC’s unrivalled global reach, which has connected international expertise with regional and local leaders.