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Project managers (PMs)–whose function is often misunderstood and whose skills are sometimes inconsistent–have become increasingly vital to corporations, institutions, and investors considering capital projects. Fueling the need for project managers is the trend toward open, collaborative workplaces and creative buildouts that are making the “office of the future” a reality. While there are many qualified project managers in the field today, organizations must choose carefully, as there are significant opportunities and risks to hiring a PM. Why? With a lack of professional standards, almost anyone can hang out a shingle and call themselves a “project manager.” Organizations, often with countless millions of dollars lying in the balance, are often unsure about where to turn.
Project managers–not to be confused with property managers who are responsible for onsite building maintenance–provide comprehensive services such as strategic planning, budgeting and scheduling, site selection, headcount analysis, programming, relocation coordination, team procurement, design implementation, and oversight of construction, occupancy, and closeout. They assist organizations in hiring architects, engineers, general contractors, and many specialty vendors (furniture IT, AV, etc.). Overall, they oversee the workflow and strive to deliver projects on time and budget. That’s a huge responsibility, and it is fraught with risks. This is especially true when you consider that project managers, unlike architects and other related industry professionals, have no licensure or accreditation requirements. What’s needed is a push toward greater industry accountability through professional standardization, and the purpose of this article is to inform executives about this issue and offer solutions.
An Evolving Profession: While project managers are ubiquitous today, they were a rarity 25 years ago. For organizations with no in-house specialization in this area, project management fell to traditional design and construction professionals. Absent a clear team leader, the direction of the project often lacked clarity, and results often suffered. Into this void entered a new breed: project managers, professionals whose skills overlap with many on the team they are responsible for managing. As need for project managers has increased, more organizations now recognize the benefits of partnering with these dedicated specialists. But as a fledging field with no rules and no code of ethics, this has been unchartered territory. Despite the lack of standards, many PMs today are dedicated professionals with impressive records. But PMs have been–and still are–all over the map, coming from disciplines such as architecture, engineering, construction, brokerage, and property management. Some have degrees; some don’t. Some have technical training; some don’t. Some have strong track records; some don’t. In any event, the stakes are enormous: When a project is mismanaged, it can cost vast sums in overruns; alienate employees, customers, and investors; and jeopardize operations.
Sometimes, rather than creating a team approach to realize success, PMs may try to justify their existence by beating up the designer or builder when problems surface. In contrast, today’s successful PMs assemble a capable team and foster ongoing collaboration.
Some organizations think they can save time and money by having their in-house design or construction team control the project. With a competent team, this may work, but potential conflicts of interest may present risks to this approach.
Positive Steps: With changing needs and increasing demands, the industry has started to respond. For example, Mass. now requires the hiring of a PM per MGL 149a for state projects costing more than $1.5 million. The law sets forth minimum qualification standards that require the PM be a registered architect or professional engineer with at least five years of relevant experience in the construction and supervision of buildings. In the event the PMs are not registered architects or professional engineers, they must have at least seven years of relevant experience. This is a step in the right direction, but it’s not enough. What about private-sector jobs of all sizes, and what about projects out of state?
To address these concerns, we have assembled a group of project management professionals who aim to elevate the profession by improving consistency and quality. This involves bringing together PMs with clients, designers, and builders to tackle a range of challenges. A chief objective is to form a professional association to serve the needs of the industry.
Ultimately, we want to create standards that govern admittance to the profession. For instance: education/training, certification, and code of ethics.
Other issues to be addressed include: Definition of roles; project management tools; processes and procedures; consensus building and conflict resolution; liability insurance; contracts; recruiting; and compensation
Once these higher standards are in place, we will be better equipped to mitigate risks and maximize performance.
Selecting the Right PM Today: Meanwhile, before this standardization becomes a reality, organizations need to be extra vigilant in hiring project managers who best meet their needs. They should scrutinize the background and track record of PMs and ask to see client case studies. Key criteria should be education, training, and experience. Reference checks are particularly important with clients and architects, engineers, and contractors they have worked with.
When the right PM is identified, this should lead to improved production and morale, better recruitment of talent, and good ROI. But the larger issue is the professionalism of the field itself. The move toward higher standards is overdue, but it is underway, and we welcome the input of our colleagues. The industry deserves nothing less.
Dwight Patten is a managing principal in the project management group at Cresa Boston. Gregor Smith is a partner at Smith + St. John, Inc., Topsfield, Mass.