The decision to change your corporate
office space involves far more than
making a telephone call to a moving company. Companies may select an internal resource to manage this change, and
while that individual may be an expert in
his or her particular field, chances are he or
she has no experience in corporate real
estate. While choosing to handle the job
internally may seem more cost-effective on
the surface than outsourcing to a project
management team, the employee tasked
with this responsibility costs the company
more than it saves, more often than not.
“When you think about it, you’re attempting to save the cost of the project management fee, but you’re losing out on the additional savings a professional project manager can bring to your project,” says Mark
Kowal of Grubb & Ellis Company. “Furthermore, project managers anticipate your
needs and can head off costly decisions
upfront, particularly when they work with
your commercial real estate salesperson.”
Smart Business talked to Kowal about
some of the cost-saving measures a
company can employ to ensure a smooth
transition.
How should a company approach the relocation process?
The best relocations are the ones that
fully integrate the client, project resources
and the project manager and have a solid
communication process. Every project
requires the coordination of resources. The
better the communication and the more
integrated the approach, the less opportunities there are for the project to get
derailed due to conflicts in timing or logistics, such as two vendors needing to be in
the same area at the same time or not
installing electrical outlets needed to support the technology, for example.
How does the process play out?
The first consideration is your programming requirements. Determine what
works in your existing space and what
should change in your new space. Are you
deleting or adding departments, products
or services?
At that point, you can engage an architect
to give you a more detailed version of your
required programming, including how
departments align, what can be shared and
what needs to be separated.
For even the smallest projects, you’ll
need space for copiers and office supplies.
You’ll need signage to make the move easier for employees. For bigger jobs, you may
need to add a cafeteria, food services or
even an auditorium. As you determine
what will be included in your space, you
can call on specialty services to supplement your core team.
You can also involve a construction manager in the design process to comment on
constructability. The more information you
have upfront, the more you will save time
and money.
How closely must contracted services be
monitored, and in what manner?
Typically, there is constant communication with the team, including daily e-mails,
weekly meetings and site visits. Different
players participate in the meetings as necessary throughout the course of the project. For instance, you wouldn’t necessarily want to involve furniture suppliers as
you’re putting up steel, but at some point,
they will have to visit the site.
A project manager will involve a client
representative as the project progresses.
It’s important for that selected representative to see what’s going on and relay that to
employees who might not be involved in
the process.
Depending on the size of the project, the
project manager may be located at the site
and interact with the contractors on a daily
basis.
How can a competent project manager save
money?
A good project manager always has cost
avoidance in mind. It’s a huge financial
benefit to include the project manager in
the site or building selection process. He or
she can work with the real estate broker to
analyze what site factors — like layout or
access to elevators or docks — may cause
higher construction costs. Even reviewing
what the landlord is providing (and not
providing) could save the end-user hundreds of thousands of dollars. As the project progresses, the project manager provides value engineering to avoid getting
away from the budget numbers.
Furthermore, determining what materials may require a long lead time to acquire
and having them ordered early can minimize expediting costs. Lastly, a good project manager is able to provide an experienced global support system that has the
capability to pull in other experts from various areas when necessary.
What determines the success or failure of a
typical relocation?
My view of a successful project is when
employees can walk into the new facility
for the first time, get a cup of coffee and
find their way to the conference room for
an early meeting. When the meeting is over,
they can find their new office or cubicle
with a working computer, ready Internet
access and working telephones.
MARK KOWAL is senior project manager in Grubb & Ellis Company’s Detroit office. Reach him at (248) 357-6567 or
[email protected].
