At M-VAL, we undertake projects through an integrated real estate investment projects management (REIPM) process that starts from the conceptualization of the project to the realization of the investment objectives. We have done this on the realization that the real estate investment market is attracting ‘pure’ and modern-day investors that are only interested in the returns and not necessarily the process and the management. This model of real estate investment is also favored by those investors who believe in the professional execution of projects.
The new procurement rules and the growing institutionalization of corporate governance is continuously encouraging the growth of project management as a sub-set of the real estate consultancy. The aim of our project management services is to oversee the project to ensure that it is completed within time, specifications, budget, and achieving the highest possible returns. We thus conceptualize project management as the art and science of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality, and satisfaction.
Our understanding of real estate investment project management (REIPM) is more extensive compared to the traditional perception. Whereas project management has traditionally been equated to construction management, we understand project management as the management of the investment in real estate in order to maximize returns, be they financial, social, public good or any other conceivable objectives.
Our project management model is broken into four phases, namely the:
Pre-investment Phase of the Project planning phase This includes the services offered
in the Real Estate investment.
Construction Project Management – this is the execution phase;
Investment realization (disposal: management, sale, leasing and a combination)
Post-occupation phase (defects liability period and management).
These are interrelated phases that require coordinated approach to ensure that the investment
meets its objectives. In a nutshell, our REIPM model is composed of project conceptualization,
project financing structuring, construction management, project disposal and real estate investment management.
Construction Project Management
This service aims at managing the project construction phase after the pre-investment phase.
We are guided to deliver the project in line with the client’s objective. Our tasks under this phase
include but not limited to the following:
(a) Construction Management Planning- before the start of the actual construction, a lot of background activities will have to be undertaken. Our firm will, in conjunction with the other consultants, prepare the tender documents (bills of quantities, working drawings, and site and soil analysis reports), prequalify suitable contractors, release the bid/tender
documents, receive the bids, evaluate the bids (with a thorough review of every item, seeking to get the most suitable cost in the market), and open negotiation with the contractor. Upon agreeing on the contract sum, we will ensure that the construction contract is signed (in the form of the standard contract adopted by AAK, JBC or other progressive forms of contract), jointly with the contractor and sub-contractors draw up the works
program/Gantt Chart and clearly agree on the issues or matters that are a condition precedent to the start of the contract.
(b) Project Cost Management- the agreed costs as per the construction contract, consultants’ fees and other incidental costs will be incorporated in the project cost plan. We will prepare a cash flow chart or a work breakdown structure (WBS) indicating the time when the specific item of cost is to be expended and how the cost of each item fits into the overall cost of the project. Depending on the project financing plan adopted, there will be attempts to utilize funds with the least cost at the start of the project and the
ones with high costs later. As a rule, any expenditure, be it regular or under the contingent vote, will have to be approved before it is incurred. A watertight system of verification will be instituted for each project, depending on the complexity and nature of the project.
(c) Time Management-the project will have a clear time frame, when to start and when to end. The timing of the project will have been refined at the contract negotiation stage and incorporated in the works program/Gantt Chart. A critical path analysis model will be developed to identify building works and activities that cannot be delayed, can be delayed and can be undertaken concurrently, without affecting the cost of the project,
the overall project time and compromising the quality. This prioritization of activities will certainly lead to shorter time leads, which will be a great benefit to the project. M-VAL will evaluate the work program to identity any factors, both known and that are likely to cause a delay or are likely to result in time savings. Our team will continuously monitor the progress of each activity to ensure that it completed at the agreed time and identify
factors that may have caused a delay and institute measures to ensure that the time lost is recovered without affecting quality and the budget.
(d) Quality Management-the stated aim of project management is to achieve the intended quality. Closer supervision of the works by the Clerk of Works and our entire project team will ensure that the contemplated quality is achieved. Our interaction with tenants and purchasers through our property management duties has given us a broader view of the implication of quality on the success of any project and its legacy. Our participation in the disposal (either through sale or letting) places a heavy burden on us to ensure that
the quality that becomes our marketing pitch is achieved.
(e) Contract Administration-the various contracts and sub-contracts that will be entered into in the execution of this project will have to be administered. We share review all contracts and lay down, in simple terms, the responsibility of each party and the cross interaction. A clear communication system and the chain of command will have to be set out and strictly adhered to ensure that each member of the project executes their assignments.
(f) Safety Management-the safety of all those who work and visit the site is paramount. We shall liaise with the contractor and sub-contractor to ensure that safety is enhanced to avoid any accidents. A log of accidents or near-accidents will be maintained on-site to be reviewed on daily basis and form part of the minutes of the site meeting and project reports. The log will be reviewed and causes of the accidents will be addressed and
eliminated completely, if possible.
(g) Risk Management- there are many risks exposed to a construction project. Our team, with its experience in risk identification and management, will develop a risk matrix that will guide on actions to be taken to identify the risk factors and seek ways and means of minimizing their occurrence and impact. The outcome of our analysis will be presented to the highest decision-making organ of the client with a view to incorporating these
uncertainties in financial projections and reports.