Project Manager

[Matt21]

Can anyone advise on this?

I am renovating a townhouse in London to include a new kitchen, 2 bathrooms, basement extension + moving two stud walls. Total cost likely to be c.120k.

I don't have time to manage the project myself, and have been quoted a PM fee of 15% of the contractor costs + 15% of the price of furniture and fittings. This sounds like c.£20k to the PM to manage the building process and source fittings for a 3 month (?) job. It sounds way over the top, but what sort of rate and on what basis should I be paying?

Many thanks!

 

[freddiemercurystwin]

Sounds very excessive to me, PM fees will vary from the paltry to the crazy, get a few more quotes and go from there.

 

[joinerjohn]

Can't understand why he'd want 15% of the cost of the furniture and fittings. Is he sourcing these ?? Somehow I doubt it. 20k for a 3 month job, Either he's having a laugh at your expense, or I'm in the wrong profession.

 

[alittlerespect]

Hi

Check out some references, ask for 5 and check out/arrange to visit any 3 at your discretion, if they come back good you should have no problems. Don't forget to ask for a copy of his 'professional indemnity insurance'!

The fee the PM is charging depends on the amount of work you are expecting the PM to do - If you have a detailed architects drawing/specification then not too bad, if not then not too good.

The minimum fee you would be looking at would be around £15,000 but if the PM has to do a lot of sourcing and getting approvals then this cost could easily go up to £24,000 so all in all £20,000 isn't sounding too bad - you could always negotiate say look to gain an 8% reduction in costs. Whatever you do - do not pay in full until you are satisfied that the job has been completed to the required standards - I assume you will be using the RIBA short form of contract against which stage payments can be agreed?

Regards

 

[^woody^]

Widen your search to include other building professionals to manage the work - surveyors, engineers etc.

Fees will vary depending on the level of involvement, but you can negotiate a fixed fee or a %, but your existing quote seems quite a lot.

Why don't you just agree something with a reputable builder?