12 June 2024
Project Management Fees vs Cost Savings
Think Project Management is expensive? Think again!
Time and time again, the savings, efficiencies and guarantees that we are able to secure for our clients will exceed our fees. So, in effect, we’re making you money, not costing you money overall. Add to the fact that we reduce stress, remove the jeopardy from building in Spain and keep everything running to time, and you could say that project management is priceless!
Read on to find out how we save you more money than we cost you and why contracting a Project Manager is an absolute must.
How a professional project manager saves you money
To maximise the cost saving potential and reduce risk, you should bring in a Project Manager from the very start of your project.
We help you to map out the strategy of the project, drill down into the numbers, ensure that all contracts and technical documentation is correct and protects your interest, and negotiate to bring down costs during the tendering process. We also have great contacts with suppliers and contractors who will offer their most competitive prices in order to work on an MDCI led project.
Then, we make sure that throughout the build, you understand the cost implications of all the decisions that you make. We’re also there to keep on top of all the trades, suppliers and constructors to make sure the project is running to time and at maximum efficiency. Reducing time, also reduces costs, so everything is managed to the last detail to remove delays and unexpected costs and deliver your project on time and on budget.
MDCI’s Cost Saving Methods
Technical Documentation Audit
This thorough checking of documentation and costings to ensure they are complete and watertight is essential for avoiding cost overruns and a vital part of our strategic analysis service. In 95% of cases, we find defects, duplications or omissions, which could have caused budgetary issues down the line- and negatively impacted on your cashflows.
Faster building licence application
We have developed excellent relationships with town halls throughout Andalucía over the last 25 years and understand the process inside and out. Thanks to these relationships and knowledge of exactly what they need and how they’d like to receive it, we usually get favourable treatment from the planning offices and our projects get approved faster. This saves time and enables clients to start the build faster and start to sell the product earlier too. Get the lowdown on gaining building licences on the Costa del Sol
Tendering
We organise and manage an efficient and competitive open market bidding process which is where significant cost savings are made. We select the right supplier for the job at the right time to bid. Our many rounds of negotiations save on average 10%, if not more, and result in lower product costs from the start.
Cheaper and faster finance applications
We have relationships with Banks, Brokers and Property Investment Funds that can be available to our clients for much less than market rate, representing an important reduction in costs. These entities trust us – and our development projections, on which they base their funding calculations, so they offer better rates to our clients and on more favourable conditions.
Favourable Insurance rates
As we are famed for our processes, checks and balances and have a great reputation for delivering top-quality projects, with no defects to worry about, the insurance companies will look favourably upon any project that we are involved with. That leads to cost savings, as insurance is offered at a more competitive rates to our clients.
Contracts checked, vetted and negotiated
MDCI work hard to negotiate tight contractual terms with all suppliers and constructors, ensuring clear deliverables and clauses that protect clients’ interests. We also make sure that any late penalties are visible and actionable, so you are financially recompensed for any overrun. Find out more about the importance of a good contract
Preferential prices and conditions from suppliers
We’ve developed longstanding, positive working relationships with suppliers and specialists and our clients benefit from reduced prices and preferential rates thanks to previous high-volume orders and our outstanding reputation. We have been able to secure significant savings for our clients on things like landscaping, lighting, home automation systems, kitchens, Jacuzzis, BBQs, awnings and much more.
A tried and tested methodology
Over the last 25 years, MDCI has been refining and strengthening our working practices, processes and techniques to develop a unique and highly effective way of project managing even the most complex of projects. This gives our clients security and peace of mind and keeps suppliers and contractors on track, with clear briefs and constant leadership and supervision. This combination of steps, processes and checks and balances is why we’re always on time and on budget and no expensive mistakes are allowed to slip through. Check out our 9 steps to project management success
Confused by different quotes?
Differentiating between low prices and good value
When you’re going it alone it’s easy to be confused by different quotes and simply choose based on price, without understanding what this includes and the potential pitfalls it opens you up to. Our job is to forensically review all offers and make sure they are like-for-like, questioning quotes which appear underpriced and checking that suppliers’ costs aren’t being bumped up to cover the shortfall in the actual cost of the job. We ask the difficult questions to ensure that there are no impediments to deliver and to lock contractors into a contract which protects you from unforeseen extra costs. We drill down to remove the builders’ extra contingency costs and remove unfair payment terms such as up-front payments, which leave clients exposed. We rigorously control the project cashflow. Anything not planned or previously agreed is not there is not authorised for payment. We scrutinise what is being sent in and check against agreements and question any discrepancies, until the correct authorisations and agreements are achieved. Then, we offer advice and guidance on the optimal suppliers and contractors to choose, based on a full understanding of their quotes, reputation, ability to deliver and many other factors, ensuring you have the very best team at your disposal.
Not all Project Managers are the same
When contracting a certified Project Manager and choosing the right people to represent your best interest, make sure they are fully independent, experienced, trained, knowledgeable, professionally qualified and committed to supporting you throughout the project.
As you can see, we’re committed to saving you money, rather than simply supervising and administering a project and this is one of the ways our Project Management service stands out from the rest. Find out more about why choose MDCI on our website.
We’re proud to have been setting the benchmark for quality Project Management in Spain since 1999 and have many happy customers who are happy to recommend us.
Here are just a few recommendations from our Clients
“I would strongly recommend MDCI. They are extremely knowledgeable in the business, extremely well organized and specialists in putting contracts together which will keep you out of trouble. They know how to bid out the construction costs, how to hold contractors accountable and save you money through value engineering and contacts. I cannot recommend them highly enough.”
Other clients comment that Mark and his team “follow his systems and processes to a “T” and that leads to his success”. He is “a real stickler for quality, budget and being on time” and “he will keep you from being ripped off.”
“Thank you Mark, for delivering my project on time and on budget” JW Marriott Jr, Chairman of Marriott International, USA.
If you’d like to find out more, contact us to arrange a no-obligation consultation to discuss your project and how we can help.
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