Question: Is it advisable to use a project management company to manage remedial work for concrete spalling for a 20-lot building? What are the risks if the committee works directly with the builder?
Answer: This really depends on the scale of the problem.
This really depends on the scale of the problem. Is this a small problem, such as some lifting lugs of precast panels spalling, or is it major spalling, such as parts of the facade falling off? As a rule of thumb, if it is likely to cost more than $50,000 to remediate, a project manager is best suited to scope, tender and manage the project through to completion.
A project manager would likely be able to obtain better prices than the owners could achieve, protect the owners by ensuring the right contracts are in place, manage the quality of the works, remove liability from the committee, protect against unnecessary variations, certify payment claims (so the owners are only paying for completed work), sign off on the works at completion and ensure warranties are in place, and retain money from the builder for 12 months to ensure if anything goes wrong with the works, the contractor will come back and rectify.
For smaller works, it is well worth engaging a professional to scope the works and sign off at the end of the works. Unless the owners have someone with the necessary construction experience, no one is qualified to confirm that the works have been completed to an acceptable standard and authorise payment.
This post appears in Strata News #741.
Sam Hogg PASG Projects E: info@pasg.com.au P: 0455 335 477