Office Fit Out Project Management
As a C-suite executive, you’re already balancing a huge range of competing tasks, priorities, and challenges. Adding an office refurbishment or relocation on top of that can feel overwhelming. That’s why you’re considering appointing a project manager to run the whole project. But should you assign an existing employee, hire a new one, or appoint a project management company?
As an office design & build company, we’ve been involved in thousands of office fit outs over the last 15 years. We’ve seen companies thrive on the right project management decision, and conversely, struggle having made the wrong decision.
So what is the right decision for you? Unfortunately, it’s not black and white – there is no one right answer. The best choice for you depends on your internal priorities and constraints, as well as several key project factors. The competence and alignment of your employees, consultants, and design and build company will also play a part.
In this article, we’ll first go over how the two project management approaches are different from each other. We’ll then break down 5 key factors that will impact your decision. By the end, you’ll know how to identify which approach is best for your upcoming office fit out.
In-house vs Professional Project Management: How They Differ
The most popular option for office fit out project management is to appoint an internal project manager. This is often the office manager, facilities manager, or an executive assistant. You could also hire someone especially for the project. Typically, this role involves maintaining internal alignment, coordinating communication, and making minor decisions. They will liaise with C-suite about major decisions, and carry out the bulk of the internal work.
The other option is to appoint a third-party project manager. This could be a freelance or an agency project manager. Typically, they will take on a higher-level role than an internal project manager – facilitating key internal meetings, selecting the design & build company, and managing them. Input from your company will still be required to brief and manage the project manager, make decisions, and give feedback to the design and build company.
Factors to Consider
Of course, a lot depends on the capabilities of your project manager – internal and external alike - and your relationship with them. That said, there are several factors that will impact what the best choice for your project is. Here, we’ll go through each, explaining how they impact your project management choice.
Experience
For your office fit out to be a success, project management expertise is essential. Office fit outs are major investments of time, money and energy, and you need to ensure your project fulfils your goals and delivers good ROI.
If your team has managed office design & build projects before or has strong project management capabilities, they will be able to handle the process. You know your business, your needs, and your aspirations best. Internal management will make it much easier to ensure your project aligns with those.
On the other hand, if the proejct is very large or complex, bringing in an external project manager can help ensure nothing is missed. They will be more experienced and can use that to improve your project. However, this expertise comes at a cost and adds another layer of complexity to your project.
Cost Efficiency
Budget is a major factor in many office fit out projects. Real estate is the second highest cost for most companies, and just 1 in 3 construction projects finish less than 10% over budget.
By keeping the project in-house, you avoid the extra fees associated with hiring an external project manager. Your team can directly manage contractors and suppliers to ensure you’re getting the best value for money, and have a more direct incentive to do so.
An external project manager will typically cost 3-5% of the overall fit out costs. They can use their expertise to help you avoid unforeseen costs and negotiate better deals, reducing project costs. However, they will typically prefer larger, more established design & build companies, which tend to be more expensive.
Control and Flexibility
Another crucial consideration is the level of control and input you want into your project. Appointing an external project manager will reduce the amount of time needed, but also your control, as they will make many decisions. Another consideration is flexibility. Unforeseen situations will always arise, and having the ability to deal with them effectively and efficiently is crucial.
With an in-house project management structure, you have the freedom to make changes without going through an intermediary. As a result, decision-making is simpler and faster. This can be crucial to deal with unexpected changes or shifting priorities.
External project managers, on the other hand, will work to a more rigid process. While this will reduce the risks associated with your project, you will be less able to make changes or get involved in the detail. This can be very beneficial for large projects, but it may be unnecessarily restrictive for a smaller workspace.
Risk Management
Any project comes with risks. Office fit outs and relocations are no different. The dynamics of your project will play a major role in which approach is best for managing risks in your project.
An internal project manager will have a deeper understanding of your business, priorities and culture. As a result, they will have more context to make good decisions and mitigate risk. Communication will also be smoother and simpler.
On the other hand, a professional project manager will be much more experienced in identifying and mitigating risks. If your team lacks experience in risk management and/or fit out, then an external project manager will be essential.
Time Commitment
An office fit out or relocation is a major undertaking. There are many divergent priorities and stakeholders, not to mention hundreds of decisions. All of this takes time. Your project management process will dictate whose time that is.
Managing your project internally will increase the workload on your team. It will also allow for closer monitoring and faster decision-making. Depending on the nature of your project and the process of your design & build company, your project could take up the bulk of several people’s time. Have you got the resource to handle this?
If you lack that resource, you can access the time you need by appointing a project manager. However, you will still need to brief and manage the project manager, as well as be directly involved in design and construction decisions.
Choosing Your Project Management Route
Choosing between a professional project manager and handling the project internally is a major decision. It will affect your project’s timeline, budget, and long-term success. If you don’t get this choice right, your project cannot be a success.
Whilst professional managers bring expertise, risk management, and industry connections to the table internal project management can be effective for straightforward projects where cost control and internal capacity allow for more flexibility and speed. By understanding the different factors involved, you now know how to make an informed decision that’s best for your business.
To learn how to manage your office fit out company and work effectively with them, read this article. To find out who to involve in your office fit out (both internally and externally), https://www.zenturaworkspace.co.uk/post/office-fit-out-teamread this article.
