Project Management Responsibilities Quiz

Project Manager Responsibilities

• The Project Manager is responsible for preparing and controlling cost information
• They must manage team members to ensure that the work stays within the agreed-upon budget
• They set and adjust budget limitations
• Project managers exert maximum influence on decisions affecting costs
• Architects should use cost information with confidence, by expressing it in standard formats, being consistent and methodical, and avoiding ambiguity
• When publishing cost information, assumptions, constraints, and limitations should be listed clearly
• Architects should describe the factors considered in establishing the project contingency amount and confirm cost information provided verbally in writing
• It is recommended to include references and comparable projects alongside cost information
• It is recommended to have a cost information file for each project and keep it updated
• Analyze each project on completion and maintain files containing reliable historic cost data
• Historic cost data must be checked in detail to ensure comparability with the current project

Liability of the Architect

• In an architectural practice, liability for incorrect cost estimates cannot be avoided, whether or not the architect is the project manager
• The typical client-architect agreement will include a clause stipulating that the architect will be responsible for redesign at no cost to the client if the lowest bid exceeds the construction cost estimate by a predefined amount, often 10% to 15%

Cost Forecasting

• Cost forecasting is an important and rigorous activity that relies on historical data
• The original data must be carefully and methodically selected by experienced personnel
• The reliability of the raw historical data and the ability to adjust the data to suit the characteristics of the new project are crucial
• It is best to have a new project resemble examples from which data is drawn
• The success of cost forecasting depends on the extent to which the analysis is broken down into a large number of small components, instead of a few large unit headings
• Project uncertainty and risk should be accounted for with cash allowances and a contingency reserve

Formats of Cost Estimates

• There are two widely accepted formats for presenting construction cost information: Uniformat II and MasterFormat 2016
• Both formats relate through cross-referencing tables
• Uniformat II was developed for the purpose of cost estimation
• It consists of eight categories (A through G and Z), each divided into major systems, subsystems, and components using a cascading numbering system
• The breakdown allows for consistent presentation of cost estimation information
• The standard MasterFormat 2017 48-division system uses the trade and supplier headings used during construction
• This format is usually employed by contractors to prepare tenders and applications for payment

Factors Affecting Costs

• Several factors influence the construction industry and affect building costs, including inflation, market conditions, other economic factors, and the political and social climate
• Due to economic cycles, inflation and the consequent escalation of construction costs can vary
• Architects should always include an allowance for escalation as a line item in the project budget and be aware of inflationary trends
• Architects should indicate a reference date on all estimates and seek input from the client
• During periods of high demand, construction projects can become expensive
• Recessions often lead to decreased construction costs, particularly for non-union labor rates
• When developing the cost plan of a project, establish the basic cost of the building and justify theoverall project budget during the forecasting process.

Techniques and Consultants

• Unless the architect has developed cost analysis skills in-house, expert advice should be obtained from independent professional experts or those intimately involved in construction.
• Quantity surveyors provide professional services at hourly rates, fixed fees, or a percentage fee of the construction budget
• Quantity surveyors have independent professional status and their success is based on their track record of reliability in forecasting
• They usually supply information on comparable projects to establish credibility
• Some larger quantity surveying companies publish their own updated forecast information yearly
• Unit costs from quantity surveyors are usually historical and often not connected to real-time costs, making them less current than costs available from contractors or construction managers
• Detailed cost information may not be available because cost breakdowns are limited to major trade divisions
• This can lead to the substitution of inferior or inappropriate products, simply because they are cheaper
• The architect must be informed and advise the owner on the consequences of proposed changes
• The architect should document all changes in construction documentation requested by the owner and provide written comments and recommendations on all changes
• The architect should clearly describe the positive and negative aspects of the substitutions.

Embodied Energy Cost Analysis

• This type of cost analysis assesses the environmental impacts and energy consumption associated with the extraction, manufacture, delivery, installation, demolition, and recycling of building materials
• This field is often dominated by specialists
• Architects are well-equipped to develop knowledge and skills in this area of expertise, rather than relinquishing it to others