Advantages of Outsourcing Project Management

1. Advantages Of
Outsourcing
Project
Management

2. Advantages Of Outsourcing Project
Management
Let’s discuss what are the advantages of outsourcing project management,
especially when compared to employing a new project manager.

3. Cost flexibility, as it is easier to increase or decrease the
cost, according to the needs.
When time-and-materials type of contract is being used (and it seems to be the most commonly
used type for this kind of engagements), then the cost level matches the real effort. With this type
of contract the buyer (organization) usually pays for the seller's (project manager's) hours spent on
delivering services, and not for any particular deliverables. Less hours means lower cost, and more
hours means higher cost. Very unlike the situation with the employed project manager, when costs
are being generated even if there’s not enough work for a full-time project manager. This is
particularly important in volatile times, when demand can go up or down very quickly, and
consequently organizations are generally more cautious in employing new people.

4. Higher level of objectivity.
An outside person is less likely to fall under the influence of office politics and may bring an
independent and more objective view of what is better for the organization. The lack of those
blind spots, that each organization inevitably possesses, enables decisions that bring more
value to the organization.

5. More authoritative position of an outside
expert.
A specialist from outside is sometimes viewed as a kind of a know-it-all superman (sometimes
not justifiably ;-)), so in such cases people within organization can be more inclined to agree
with a course of action suggested by an outside expert than with one suggested by their
colleague from within the organization. With time this bias tends to fade away as the more
realistic view sets in.

6. Experiences are brought from outside and
they benefit the organization.
External experts usually work simultaneously on other projects not related to this organization
and they bring these experiences with them. This is not about intellectual capital being stolen,
of course. It is about learning from other areas and applying these lessons within our
organization.

7. Possibility to negotiate with more
providers.
Competition is a good thing. When there are more providers to choose from, they try harder,
and they work on improving their practice. Organizations can benefit from this by applying
sound procurement procedures. This applies to project management outsourcing as well.

8. Exposure to newer methodologies being
used by an outside specialist.
External specialists tend to invest more into project management research, new technologies
and methodologies. Organizations benefit from this without the need to invest as much
themselves.

9. Generally lower cost levels.
Employment costs of project managers are generally not in the lower categories.
And it seems that they are on the rise even when economy is going down, due to
demand on the job market which continues to rise. If an organization needs a
project manager who would not work full-time, the decision to outsource is probably
a no-brainer (cost-wise) as in these cases the outsourced cost levels are much lower
However, if organization needs a full time project manager, in some cases it may be
more effective and economical to hire a full-time project administrator (generally a
lower-cost role that takes care of the more administrative parts of managing the
project) and to outsource the part-time project manager role.

10. Benefits of CRG
as your CM  Labor agreements and Labor relations.
 Permitting and Plan check support.
 Bundling and bulk purchasing.
 Outreach to develop market interest.
Procurement
and Delivery

11. Benefits of CRG
as your CM
 Safety & Risk Management
 Child Safety Programs
 CIP
 Education/Training
 Pro-active Management
 Alternative delivery methods
for specific projects
 Design/Build
 At-Risk or Turnkey Delivery
 Job Order Contracting (JOCs)
 Pro-Active Site Management
 Project “first” with respect to issue resolution
 Maintain clear communications between all
stakeholders
Construction

12. Benefits of CRG
as your CM
 Enhancing Project Closeout
 Start planning closeout strategy before
design starts
 Requiring a detailed schedule of closeout
tasks
 Breakout detailed schedule for each
closeout activity
 Maintain a dynamic, cost-loaded
Incomplete Work List from start of
construction
Project
Closeout

13. Benefits of CRG
as your CM
 Assistance with placement of staff
 Providing interim staff
 Training for O&M personnel
 Extended OEM warranties
and service agreements
Commissioning

14. Project
Hierarchy

15. Stages of
your Project
5 Stages of
your
projects life
cycle
Project
Conception
and Initiation
1
Project
Definition/Plan
ning
2
Project
Launch/Execu
tion
3
Project
Performance/
Control
4
Project Close
5
When working with CRG we commence your project
management with 5 Key steps.

16. Project Conception and Initiation
 The first step in a construction project’s life cycle is deciding whether or not a
project is feasible and if it can realistically be completed. This means doing
your meticulous research to determine if a project is worth pursuing.
 Two ways that managers can evaluate and determine this is through a
feasibility study and/or business case document.
 A feasibility study looks at the goals, costs, and timeline of a project to
determine if the project manager thinks they have enough resources to pursue
the project.
 A business case document defines the reasoning for starting a new project
and what the financial benefits will be. If after further research and discussion
a project is found to pass these evaluation tests, the project will move on to
create a project charter or Project Initiation Document (PID).

17. Project Definition/Planning
 Once a project is approved and given the thumbs-up, a plan or Scope of
work needs to be outlined and put into writing.
 Having a Scope helps ensure that everyone on the team is on the same
page and understands the steps that need to be taken to complete the
project.
 During this step in the construction project’s life cycle, the cost, scope,
duration, quality, communication, risks and resources are summarized.
 Hitting on each of these areas gives your team a well-rounded idea of
what will go into a project.
 This phase is imperative in preparing and executing a successful project.

18. Project Launch/Execution
 The next step in a construction project’s life cycle is the actual execution
based on your comprehensive plan developed in the previous step.
 This stage is where deliverables are developed to satisfy the customer.
 An initial meeting is usually held to mark the beginning of a project and to
communicate responsibilities to teams.
 Team members are assigned specific tasks that they are expected to
complete, and resources are allocated accordingly.
 Some of the specific tasks during this phase include: assigning teams,
executing project management plans, conducting status meetings,
updating project schedule, and modifying project plans.

19. Project Performance/Control
 This stage of the project cycle is all about monitoring.
 Project performance and control goes hand in hand with the previous step because
they occur simultaneously.
 During this phase, project managers track a project’s progress, often having to
adjust to keep a project on track.
 Specific key performance (or project) indicators(KPI’s) for cost, time and quality are
selected and utilized to determine degrees of variation from the original project
goal.
 Some examples of specific KPI’s include project schedule, estimate to project
completion, effort and cost tracking, and project performance.
 Calculating these KPI’s keeps projects on track to prevent any project failures.

20. Project Close
 After a project is officially completed, we move into the final stage of the
construction project’s life cycle.
 This last step is vitally important because it allows team members to evaluate,
document and learn from the project. Project Close helps members determine
what issues they had so that they can make improvements in the future.
 A final team meeting is usually held and led by a project manager to officially
mark the ending of the project.
 Valuable team members are rewarded and recognized, contractors are
terminated, and project successes and failures are identified.
 Also, project managers must create a final project budget and final budget
report to close out the project.

21. Project Success
Our Project Managers go through a lot to create and deliver a highly
successful end-product, by understanding the five stages that ensure the
process is easier and more efficient.

22. Who we are and what we do:
Project Team Roles and Responsibilities
Chris Gorga
COO
Elizabeth Anderson
Assistant Project
Manager
Jaime Murgueytio
Administrative
Assistant
Christian Pussilano
Regulatory
Support
Martin Eller
Controller
John Rizzi
Project Manager

23. Our Major Accomplishments
 Awarded Owners Representative contract on a $28M privately funded project. Competed project under budget, saving
client $1.5M.
 Captured over 60mw of Construction Management contracts to engineer, procure and construct multiple ground mount
solar projects over 10 locations. All projects have been completed project successfully, saving client millions.
 Delivered critical four month project 30 days faster than expected. A $10M distressed situation utility scale was purchased.
Overcame roadblocks and completed project successfully in record time, saving $1.5M.
 Awarded $3.5M in contracts that had 20% gross profit margins. Nurtured relationship with national developer and was
awarded contracts to build six projects for world’s largest REIT.
 Developed 110 unit multifamily complex. Construction Management contract with complete autonomy on design build
procedures. Completed project on time and 10% below budget.
 Completed Full renovations on over 150 properties ranging from ground up new construction, renovations and fit outs on
Residential Single Family, Multifamily, Commercial and Industrial Properties.
 Completed $4.5M restoration project early and 15% under budget. Renovated historic building back to original oak
beams and natural brickwork. Completed project four months early.
 Selected as Project Oversight for $35M ground up project. With complete facility access, controlled project, union and
trades professionals, completing project as specified in the scope document.
 Member of Construction Management Association of America

24. Construction Management
Association of America
 Being a member of CMAA comes with BIG responsibility.
 Must demonstrate the mastery of the Construction Management
Association’s (CMAA) Standards of Practice and the Construction Industry
Institute’s (CII) Best Practices Guide.
 Display proven leadership and competency through responsible-in-
charge experience.
 Must keep skills and knowledge fresh through recertification.
 Deliver the benefits of industry-standard services on every job.
 Provide owners with an objective assurance of knowledge skill and
abilities.

25. Committed to Your Future
 Having a Certified Construction Manager lead your project increases the
chances for:
 Reduced Risk
 Increased Sustainability
 Keep on Schedule
 Stay on Budget
 Additional Resources

26. For More Information:
Chris Gorga
Founder
Chrisg@crgdevco.com
5 Sicomac Rd
North Haledon, NJ 07508
973-870-0003
www.crgdevco.com
info@crgdevco.com