Project Managing my VERY FIRST project... 40 Townhouses HELP lol

9 Replies

Hi Everyone! 

Long time, but I'm back in need of some serious advice regarding a project I've been blessed to be a part of. Not sure if you all are aware of who I am, but I graduated with commercial construction project management  in 2016 and got licensed in Real Estate earlier this year! I have been serving to pay my bills as a single mother and while moving back to Statesboro Ga after a misfire of an attempt in Atlanta for a year, I was blessed to come into contact with a gentleman who is wanting to develop his property into a 5 building, 40 unit, townhouse community. 

Here's the kicker: He wants little ol me to help him pull this entire thing together! 

After a few conversations with him, he believes in me, my knowledge, my personality and my schooling, and is excited to work with someone who he says has the same vision in real estate investing as him. This is everything that I have wanted minus wanting to do this on my own behalf, so I am very excited to take this on and believe I will do a great job!

Second Kicker: I don't want to mess this up!

I don't want to play around with his time or his investors money, and so I would love to have a little input as to the steps to take along the way. Some of the things that have transpired to this point:

1) Surveying of the property has already been done, however the site still needs to be cleared and prepared  for development.

2) Property has already been zoned for R4 (high density residential)

3) Sewage/ Potable water to the site is already prepared for multi-unit development.

4) Blueprints have already been developed and reviewed by one of the top developers in the area.

5) Investor is primed and ready to see a proposal of all costs (where I come in at).

6) Owner is a contractor and wants to reserve some subcontracting roles for himself.

Some of the things that I am struggling with up to point is how do I come up with the figures to bring to the investor? Do I simply use the Cost index and give those figures to the investor, then prepare to take bids from subcontractors to resubmit afterward? Or do I get bids and use those figures to propose to the investor?

I feel that in order for any deal to go seamlessly each side has to be very well informed and knowledgeable as to all cost and all risks assumed. With that I want to make sure that my proposal is as accurate as possible.  Not to mention, I don't want to look completely incompetent either! lol 

Any suggestions, thoughts, comments, words of encouragement..... ANY THING you may have to offer me. I am accepting to it all! I really want to do a great job!

Thank you so much in advanced!

Shannon Webb

@Shannon Webb Congratulations!  This is a huge deal for you!  I wish I had some suggestions or knowledge I could offer, but I've never been a developer or worked with one but I want to encourage you.  I'm sure others will offer insight and you'll figure out the best course of action.  Again, congratulations on securing this one and please keep us posted with what you decide and the progress :)

Originally posted by @Stephanie D. :

@Shannon Webb Congratulations!  This is a huge deal for you!  I wish I had some suggestions or knowledge I could offer, but I've never been a developer or worked with one but I want to encourage you.  I'm sure others will offer insight and you'll figure out the best course of action.  Again, congratulations on securing this one and please keep us posted with what you decide and the progress :)

Thank you so much!!! I'm very excited to take this step in my career!

Does owner wants you to take off quantiyies for Whole project or only he wants to take up against the work for his Sub contract?
Originally posted by @Bilal Haider :
Does owner wants you to take off quantiyies for Whole project or only he wants to take up against the work for his Sub contract?

 Thank you for responding:)

So he wants to have the investor fund the project while bidding out the other jobs in which he wont do himself. He is looking to get paid for the subcontracting work as if he had bidded for the job and won the bid.

If I were you I would have taken all the drawings approved by the investors so we know that what they are going to build and would give it to the top three contractors in the area and have to come up with their numbers and then I can reconcile all three quotations from the different three contractors including the activities your investor is looking at to do it by himself.
Originally posted by @Bilal Haider :
If I were you I would have taken all the drawings approved by the investors so we know that what they are going to build and would give it to the top three contractors in the area and have to come up with their numbers and then I can reconcile all three quotations from the different three contractors including the activities your investor is looking at to do it by himself.

 Is that socially acceptable? To get unofficial "bids" and use the numbers in order to secure a deal without the contractors that provided their expertise? 

Originally posted by @Shannon Webb:
Originally posted by @Bilal Haider:
If I were you I would have taken all the drawings approved by the investors so we know that what they are going to build and would give it to the top three contractors in the area and have to come up with their numbers and then I can reconcile all three quotations from the different three contractors including the activities your investor is looking at to do it by himself.

 Is that socially acceptable? To get unofficial "bids" and use the numbers in order to secure a deal without the contractors that provided their expertise? 

 Or is it common to provide payment for those estimates?

Well it varies. at some places it does work I'm not sure about your area but it's a kind of tender and batter to give a shout out to couple of contractors and let them know that you are in the planning phase of a big project and this is what you are thinking to get the different birds and whoever is Lower going to get the project Since you are from construction background you would know that how big projects are being awarded.

@Shannon Webb I would send an RFP to the well known contractors in the area that are capable of doing the work and ask to break out the part that the owner wants to do himself. So for example if the owner wants to do rough plumbing from point A to point B I'd have your contractors quote that in a separate line item on the bid sheet. I'd then have your owner bid the work as well so you can compare them all apples to apples. It would be silly to hire him to do the work if he was twice the cost just because he's the owner. Once you reconcile the owners scope and if he should do it or not- then approach the investors with the bids you received along with your fees for your services. Make sure to have the contractor submit a schedule as well which will give you a good idea how long you need to carry your PM fees for. 

My background: CM degree and heavy civil PM work. Currently on a design build ferry terminal as the owners representative. 

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