Project Management Costs

Anything to do with prices. Raw material prices or prices for finished material (or labor such as well drilling). Project prices (how much will it cost??), etc.

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Project Management Costs

Postby grant » Mon Apr 30, 2007 11:44 am

I will be using an experienced Thai national for providing project management and supervision during the construction of my villa. He will be responsible for acquiring the necessary approvals, preparing and issuing tenders, managing the various contractors and ensuring quality is as expected. I will also be onsite daily as well but my background is not in construction. etc. Can anyone provide information on what percentage of the construction costs the cost for this type of service should be?
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Re: Project Management Costs

Postby rosegate » Tue May 01, 2007 7:07 am

grant wrote:I will be using an experienced Thai national for providing project management and supervision during the construction of my villa. He will be responsible for acquiring the necessary approvals, preparing and issuing tenders, managing the various contractors and ensuring quality is as expected. I will also be onsite daily as well but my background is not in construction. etc. Can anyone provide information on what percentage of the construction costs the cost for this type of service should be?


A Thai will usally work cheaper than a farang, I would have thought your going to be paying 3 to 5% of the building costs, or if not that a monthly fee [edit dozer] good luck
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Re: Project Management Costs

Postby jazzman » Fri May 04, 2007 7:39 pm

grant wrote:I will be using an experienced Thai national for providing project management and supervision


Hi Grant,

You can nevertheless be one hundred percent sure that a Thai national, however professional and honest he is, will involve you in purchasing at the highest possible prices, for the highest quality materials, and the highest labour prices, because he will estimate what you as a 'rich' farang should be paying. He will charge his fee, and he will certainly take a cut on the procurement of materials, labour and services. There are no exceptions to this. Look what happened (on a much larger scale) at Suvarnaphum'.

Do get at least three seperate quotes for every part of your project and copare them with the prices members have posted on this board to check that tghey are realistic.

In the case that you may be really comfortably well off, there is still no reason to pay through the nose for things which are always cheaper if you, or a reliable farang can stay in control.

Some consultants work on a pro bono basis - they chqrge a comission on the money they save you when they have reviewed the quotes and tenders you have received.

A typical example would be:

You are quoted 6 million for a turn-key solution from a Thai construction company or consultant. A good Western consultant will always be able to save you at least 1 million on that price, and his fee would be 20 - 30%, i.e. about 250,000 baht. Remember that there is still an awfull lot you can do with that saved money, it's the cost of a swimming pool to go with the house, or getting a large garden professionally landscaped.
How to build a $20,000 / £14,000 house and a $???? MOTEL Updated 21 March 09 - with BOQ and costs
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Re: Project Management Costs

Postby gdublanko » Fri May 04, 2007 8:20 pm

Many thanks for the comments and advise. Yes, I am very much aware of this and I will be using the information provided in this forum religiously.
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Postby rosegate » Sat May 05, 2007 10:05 am

The job of a project managers whether he is a Thai or a farang is not there to save money.

Consider hiring a project manager as a form of insurance

The job of a project manager is to oversee the building project, insuring that it is being built to the correct standard, that the project is running to the agreed timeframe set out in the contract, update the client reguarly at least once a week with a progress report & pictures where nessary, insure that the correct materials are being used according to the bill of quantity/contract, to arange for the building permission from the relevant city hall, & to obtain building quotes if the client requests this?
Also to deal with the relevant authorities to get electric & city water (if availble) run to the project site, at clients expense
As far as fees go if your building a house in the range of 4 to 5 million baht, a decent project manager will want a set fee whether it be paid monthly or in stages throughout the project, very unlikley to be able to get someone to work on small % for a lower priced house?
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Postby jazzman » Sat May 05, 2007 1:04 pm

I agree entirely - provided a supervisor is also hired to check on the honesty of the project manager :twisted: . It can however, not be stressed enough that this is a country where everyone is on the make, including unscrupulous foreigners, and avoiding being ripped off is as much a priority as any other part of then project.

There is nothing complicated in getting all these 'permissions' either - there aren't many anyway. Beware of potential project managers who will try to convince you otherwise, like any other merchant or service provider, they want your business and your money whether you really need them or not.

A small project to a value of about 5 mio baht is hardly worth engaging the services of a Western professional as the fees would probably be out of proportion to the budget for the build. Equally, a true professional may not always be interested in taking on such a small brief. Economy of scale almost insists that their clients are developers of housing estates, hotel complexes and resorts, or industrial/comercial premisses.

If you have to, stick to individuals with a reputation to loose, like Rosegate, knowing that the service may not be cheap. but certainly reliable.
Comments enough have been made about engaging the services of Thais.

caveat emptor
How to build a $20,000 / £14,000 house and a $???? MOTEL Updated 21 March 09 - with BOQ and costs
Don't let this happen in YOUR house.
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Postby rosegate » Sun May 06, 2007 6:36 am

jazzman wrote:I agree entirely - provided a supervisor is also hired to check on the honesty of the project manager :twisted: . It can however, not be stressed enough that this is a country where everyone is on the make, including unscrupulous foreigners, and avoiding being ripped off is as much a priority as any other part of then project.

There is nothing complicated in getting all these 'permissions' either - there aren't many anyway. Beware of potential project managers who will try to convince you otherwise, like any other merchant or service provider, they want your business and your money whether you really need them or not.

A small project to a value of about 5 mio baht is hardly worth engaging the services of a Western professional as the fees would probably be out of proportion to the budget for the build. Equally, a true professional may not always be interested in taking on such a small brief. Economy of scale almost insists that their clients are developers of housing estates, hotel complexes and resorts, or industrial/comercial premisses.

If you have to, stick to individuals with a reputation to loose, like Rosegate, knowing that the service may not be cheap. but certainly reliable.
Comments enough have been made about engaging the services of Thais.

caveat emptor


I agree that getting the permisions to build a house is not that difficult, but going into a big planning dept for the first time is a bit daunting, it's all about who you know, things in Thailand can usually get done quicker with an envelope under the table :roll: but you need to be sure your giving it to the right person.
A project manager is very nessary if your having a house built & you are working or living overseas while it is beind done, somebody is needed to check on the progress reguarly otherwise a disaster is waiting to happen, if your building a 4 million baht house, building should take no longer than 8 months ( very rough estimate) a project managers fee would be something in the region of 12 to 15% of the total building costs, if the project manager charged a monthly fee, this is a small amount to pay to insure a house is being built properly in a clients absence
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Postby jazzman » Sun May 06, 2007 12:12 pm

There's no way one can disagree with any of that :)
Except that outside the main areas of farang population even the envelope under the table is not necessary - an invite to the foundation blessing ceremony and a case of beer to take home is quite sufficient :!: They WILL come and use the occasion to get in with a political speech though :P
How to build a $20,000 / £14,000 house and a $???? MOTEL Updated 21 March 09 - with BOQ and costs
Don't let this happen in YOUR house.
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Project managment

Postby rosegate » Tue May 08, 2007 1:48 pm

A friend of mine has just given me the book" How to buy land & build a house in Thailand", written by Phillip Bryce.
On chapter 9 page 96, the author has written a section on project managers which reads:

"If your not living in Thailand full time or you are not supervising the building yourself, you should definitely consider hiring a local project manager.

The project manager is usally a native English (or your language) speaking person with a background in construction, who has lived, and supervised the building of houses in your area and has some building experience from the west.

Project managers usally charge a 25% fee on top of the total cost of your project. For that they will help you hire a builder, supervise the building process and help with the purchase of building materials. They will do project planning & scheduling of deliveries, and may do budgeting and handling of payments"


This author who has no connection to me whatsoever I might ad, has hit the nail completley on the head, this is only 3 paragraphs from this section, but he clearly makes a very good point.
The complete book which in itself is also very good.

If you do a search on google for the author name there is numerous places you can buy this book as well as online. I have also seen it for sale in Asia books & bookazine
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Re: Project managment

Postby jazzman » Tue May 08, 2007 4:28 pm

rosegate wrote:They will do project planning & scheduling of deliveries, and may do budgeting and handling of payments"[/color]


Exactly as Jazzman already posted (several times , on this and other forums): A good, trustworthy consultant will also help the homebuilder to make significant savings by specifying materials that are genuinely within the budget whilst not compromising on minimum acceptable quality, instead of talking the owner into doing a Del Boy with marble floors and totally kitsch, gold plated taps 8)

DIY books abound, but the discerning visitor to Coolthaihouse.com who can detect the tone, grammar, spelling and content quality of many of the postings might not need one. There is more information in these pages, and just as professional (from those who offer the advice) than in any book on the market - what's more , it's free :lol:

But an excellent tip Rosegate, nevertheless. An absentee home builder would be foolhardy indeed to attempt his project without reliable, permanent site supervision.
How to build a $20,000 / £14,000 house and a $???? MOTEL Updated 21 March 09 - with BOQ and costs
Don't let this happen in YOUR house.
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