PROJECT DEVELOPMENT AND MANAGEMENT PROUDLY DELIVERING SINCE 1967
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GLOSSARY
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WHY HIRE A PROJECT MANAGER?
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WHAT MATTERS TO YOU
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HOW WE GET YOU THERE
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KEY PHASE ACTIVITIES
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TOP 5 BENEFITS OF HIRING THE RIGHT PM
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BUT WHY HIRE A PM INSTEAD OF...
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HIRE THE RIGHT PM
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TRANSACTION VALUE CHART
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CRITICAL FACTORS FOR A SUCCESSFUL PROJECT
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REINVENTING THE OFFICE
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RETURN ON INVESTMENT
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NOTABLE CLIENTS
GLOSSARY WHAT YOU NEED TO KNOW ACCOUNTABLE
BUSINESS USER
CHANGED CONDITIONS
The accountable person in a team may or may not be the one who actually does the work in question, but he or she is the one whose job it is to make sure it gets done.
The people who will own and/or operate the facility, product or system being produced.
Conditions or circumstances, physical or otherwise, which arise after a contract has been signed and which alter the circumstances or conditions on which the contract is based.
ALIGNED People and plans are said to be aligned when they are in agreement.
BID A binding offer, usually expressed in dollars, to provide specific services within clearly stated requirements.
BID BOND A pledge from a third party (usually a surety company) to pay damages to the owner equal to the difference between the bonded contractor bid and the next highest bidder (but not to exceed the face value of the bond) if the bonded contractor declines an award offered by the owner.
BID DOCUMENTS The documents distributed to contractors by the owner for bidding purposes, including drawings, specifications, form of contract, general and supplementary conditions, bid forms, addenda, etc.
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BUSINESS REQUIREMENTS The tasks that the stakeholders need the system or site to perform to fulfill business needs.
BUY-IN Working with stakeholders to reach consensus (buy-in) is the best guarantee of success - both for the project and for those who must work with the resulting changes to their work life.
CHANGE ORDER A document that alters the contract amount, contract time, or contract requirements of the original contract entered into by the owner and a contractor.
CLAIM A formal notice sent by a contractor to an owner asserting the terms of the contract have been breached and compensation is being sought by the contractor from the owner.
COMMUNICATION PLAN Orderly plan for communicating the project scope and objectives to all stakeholders.
CONSTRAINTS Limitations such as time, budget or technical strategy that limit actions you may undertake within the scope of the project.
CHANGE REQUEST PROCESS
CONSTRUCTION DOCUMENTS
A property managed project has as its foundation a clear scope of work, schedule and budget. Any changes beyond these parameters may trigger extra costs. An orderly change request process ensures that all changes are evaluated with respect to time, quality and cost.
Drawings, technical specifications and addenda; contract documents that refer to the physical construction requirements.
CONTINGENCIES
FINAL COMPLETION
LABOUR AND MATERIAL BOND
Amounts in the project budget, dedicated to specific cost areas, to make provisions for oversights or unforeseen problems.
The point at which both parties to a contract declare the other has satisfactorily completed its responsibilities under the contract.
CRITICAL PATH
FLOAT
A guarantee provided by a surety company to pay claims against the owner from contractors and suppliers who have not been paid for labour, material and equipment incorporated into the project.
The continuous chain of activities from project start to project finish, whose individual durations cannot be exceeded if the project is to be completed on the project finish date.
A scheduling term indicating that an activity or a group of activities does not necessarily have to start or end on that scheduled date(s) to maintain the overall schedule.
DEPENDENCY
FORCE ACCOUNT WORK
Tasks or project stages whose completion or success depends on the completion of other tasks or stages.
DUE DILIGENCE Demonstration of rigorous inquiry and consideration of factors (including previous events or action) that may influence the success or legitimacy of the project.
FAST-TRACKING The strategy of designing portions of a project while those portions already designed are under construction.
Work done and paid for on a time and material basis.
FUNCTIONAL SPECIFICATION A specification that describes how a facility, product or system will perform.
HIERARCHY OF CONSTRUCTION DOCUMENTS In the event of conflict between parts of contract documents, a statement regarding which documents (e.g. specifications) take precedence over the others (e.g. drawings).
LETTER OF INTENT/NOTICE OF AWARD A notice from an owner to a contractor stating that a contract will be awarded to the contractor providing certain events occur or specific conditions are met by the contractor.
MILESTONE A significant event in the project, usually completion of a major deliverable.
MULTIPLE CONTRACTING A contracting format that separates the project’s single work-scope into a number of interfacing similar work-scopes, to be individually and competitively bid or negotiated.
NOTICE TO PROCEED A notice from an owner directing a contractor to begin work on a contract, subject to specific stated conditions.
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GLOSSARY WHAT YOU SHOULD KNOW OVER-RUN
SCOPE
SUBSTANTIAL COMPLETION
Failure to meet time or cost objectives.
What the project will deliver. Once agreed upon, the scope of the project should be respected as closely as possible and is referred to as the benchmark, whenever changes are suggested.
That date on which a contractor reaches a point of completion, when contractors scheduled to work next can productively begin work, or the owner can occupy the project, in whole or in part, without undo interference.
SCOPE-CREEP
WARRANTY PHASE
PERFORMANCE BOND A guarantee provided by a surety company to complete a project consistent with the terms of the contract documents in the event that the bonded contractor defaults on the
QUALITY ASSURANCE The procedure established by the project team to inject and extract the level of required quality.
QUALITY CONTROL That part of the quality assurance procedure that determines if specified quality is attained.
RESOURCES Everything needed to complete the project, but particularly people and money.
RISK REGISTER A register of what could go wrong with the project; impact or such occurrences and how likely they are.
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When minor “improvements” to the project are implemented without a change request. Once the scope has been determined, it is important to prevent scope-creep by insisting on change requests.
SIGN-OFF This should always take the form of a signature or a clear record from a minuted meeting, indicating that the person with authority to formally approve the work has done so.
SLIPPAGE This is the term applied when a project begins running slightly over time or over budget.
STAKEHOLDER Any person or group with a valid interest in the project. If the project affects someone else’s work, he or she is a stakeholder.
A stipulated length of time following the construction phase, during which contractors are bonded to ensure that materials, equipment and workmanship meet the requirements of their contracts, and the supplier and manufacturer warranties and guarantees remain in force.
TECHNICAL SPECIFICATION The detailed definition of how the system will meet the functional specification.
TOR (TERMS OF REFERENCE) The plan for the project. It contains the what, how, when and why. In most organizations, there won’t be a budget or sign-off without a TOR.
PROJECT
DEVELOPMENT
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we save you
TIME & MONEY.
deliver y
leverage
expertise
project risk
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WHY HIRE A PROJECT MANAGER?
DELIVERY
LEVERAGE
Project success requires sound, smart decision making from the project manager. Our people will help you complete your project ahead of schedule and under budget.
We leverage JLL’s multi-billion dollar annual spend volume with consultants, vendors and contractors to get you the very best in pricing and delivery.
EXPERTISE
PROJECT RISK
Projects are often complex, so you will need the right team of subject matter experts to help manage your project. Our project managers have the experience and building knowledge to make your project a success.
We’ll help you minimize scope creep, cost increases, missed deadlines, liability and lack of business continuity which can be a huge burden on a business.
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WHAT MATTERS TO YOU
CONSENSUS BUILDING
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CORPORATE CULTURE
WORK STREAMS
TALENT CAPTURE
BRAND IMAGE
TRANSFORMATIONAL WORKPLACE
IT INTEGRATION
BUDGET/COST MANAGEMENT
SCHEDULE
CONSULTANT SELECTION
REPORTING INVOICING
CHANGE MANAGEMENT
BASE BUILDING COORDINATION
RISK MANAGEMENT
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PROCESS
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KEY PHASE ACTIVITIES
1 2 3 4 5
INITIATE
PLAN
DESIGN
CONSTRUCT
CLOSE
Complete close out of designer’s and contractor’s activities
Transition project knowledge
Prepare project charter/ execution plan
Manage design development process
Manage construction process
Engagement notice signed off
Develop and agree project schedule
Update the budget
Manage permitting process
Project funding signed off
Develop and agree project budget and cost assumptions
Confirm project process
Plan and execute project procurement process Plan risk & value management process
Update the schedule Manage the production and construction documents Manage procurement of contractor
Manage substantial completion process
Complete closeout of financial activities
Manage move Manager commissioning
Validate project scope
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IT ALL COMES DOWN TO
There's no question about it, construction projects are risky, costly and time-consuming. And the more complex a project is, the more potential there is for issues to arise, including scope creep, budget overruns and schedule days. A good PM will lead and help integrate all elements of a building project—from planning to design and engineering to construction and commissioning—for maximum overall results. They serve as the owner’s trusted advisor and single source of responsibility and accountability for project performance throughout the entire process. But corporate real estate (CRE) executives sometimes ponder whether the benefits of hiring a PM justify the expense. The answer is a resounding “yes.” By ensuring everyone is in the right place, at the right time, doing the right things, a good PM will help you avoid redundancies, rework and costly mistakes.
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TOP 5 BENEFITS Of HIRING
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THE RIGHT PROJECT MANAGER WILL...
1 2 3 4 5
...SAVE YOU TIME Managing a project takes a lot of time and a lot of focus. There are many components to managing a project: juggling multiple vendors and stakeholders, organizing and implementing a timeline, and managing risk and quality control. A good PM will assume complete ownership of the project—from start to finish—freeing you up to focus on your day-to-day responsibilities.
...SAVE YOU MONEY Not only has a good PM developed strong relationships with best-in-class vendors in the local market over the years that they can leverage, but they have also gained extensive knowledge and experience to ensure optimal and consistent service is delivered to the client day in and day out.
...MANAGE RISK Every project has a certain amount of risk, but should a problem threaten to derail a project in the middle of it, a good project manager has a clearly defined plan in order to make timely decisions to resolve the problem or mitigate the potential risks.
...PREVENT SCOPE Whether it’s time or money, or both, eating away at the success of a project, you can be assured that both are a result of scope creep. Successful project management controls the flow of a project and keeps team members focused on and working within the original scope of work.
...DELIVER OPTIMAL RESULTS A good PM is a highly skilled professional, trained to lead a project from start to finish, on time and on budget. They will analyze your needs and provide the right resources to ensure your deliverable is of the highest quality. A skilled PM knows there’s no such thing as a one-size-fits-all-solution, but rather brings a customized approach for the specific needs and preferences of each client. By quickly scaling up or down in size to match changing requirements of the project, the PM can ensure optimal project results.
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BUT WHY HIRE A PROJECT MANAGER INSTEAD OF... Many CRE executives wonder why their project can’t be managed either internally by someone on their own staff or simply by the project’s architect or contractor since they’re already familiar with the project. While this may seem like a good idea at first, it all comes down to expertise, focus and
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PROJECT MANAGER INTERNAL STAFF All too often, the internal delegate assigned to the project lacks either adequate training or proven experience to effectively manage all aspects of an expensive development or building project. And in many cases, the project is in addition to their ongoing responsibilities, reducing the amount of attention they can devote to the project. Unless internal candidates have extensive experience and are empowered to commit the required time necessary, they may not be able to provide the appropriate and timely direction to ensure project success.
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PROJECT MANAGER ARCHITECTS & CONTRACTORS Architects and contractors may be very capable at their individual specialties, but they can fall short as effective PMs. Unlike PMs, their responsibilities are limited to only one component of the entire project, while a PM is involved in the entire scope from the start, helping develop a clear project vision and strategy based on client-focused objectives—always with their client’s best interests in mind. Additionally, since architects and contractors are often charged with specific responsibilities, it can be difficult for them to step back and take a strategic view of the building as it may relate to other buildings in the owner’s portfolio success.
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HIRE THE RIGHT PM
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1 2 3
You’re convinced. You realize you need a good PM. But how do you hire the right one for your project and your business? Here are seven questions to ask during the interview process:
DOES THE CANDIDATE'S SKILLS AND EXPERIENCE MATCH YOUR NEEDS? Has the PM successfully managed projects comparable to yours in scope, building type and industry group? A good PM candidate should be able to provide solid references from organizations they have served successfully.
IS THERE AN ASSURANCE OF CONTINUITY FOR YOUR PROJECT? Projects can suffer potential slowdowns and information gaps from an influx of different PMs. Make sure there is one lead PM assigned for the duration of the project.
CAN THE CANDIDATE SUCCESSFULLY INSTILL A COLLABORATIVE PROCESS TO OBTAIN BEST RESULTS? A PM must be able to facilitate a collaborative process amongst not only architects and contractors, but other project contributors such as technology and furnishings planners, as well as other stakeholders ranging from internal review boards to public interest groups and regulatory bodies.
Organizations that drive optimal project management practices meet their goals 2 ½ times more often than those in low performing organizations (90% vs 36%) Source: 2015 Project Management Institute Pulse of the Profession
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Project management helps manage risk— 73% of firms that use risk management practices met their original business goals Source: 2015 Project Management Institute Pulse of the Profession
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DOES THE PM'S FAVORABLE REPUTATION EXTEND TO ARCHITECTS, CONTRACTORS AND OTHER VENDORS? While these professionals are not expected to agree with all of the PM’s decisions, they should respect the PM’s regard for quality, fairness and willingness to consider all sides of the issues. If a PM has a reputation for lowering costs by unfairly “squeezing” suppliers, they most likely won’t be respected or trusted.
DOES THE PM EMPHASIZE A THOROUGH DESIGN AND PRE-CONSTRUCTION PROCESS? The best time to add value to a project is early in the process. After helping the owner define their goals for the project, a good PM should initiate a frontend process including team-brainstorming sessions with the owner, architect, designer, suppliers and stakeholders.
IS THERE FLEXIBILITY IN THE SOLUTION THEY HAVE OFFERED? A good PM doesn’t enter a new project with a one-size-fits-all solution, but knowledge and expertise to customize an optimal approach for the client’s specific needs. A PM should be expected to assimilate with the client and its culture, not vice versa. They should also be able to quickly scale up or down in size to match changing project requirements.
HOW CAN YOU BE ASSURED OF OPTIMAL PM PERFORMANCE? The role of PM is to ensure all project contributors are delivering optimal results, but who’s overseeing the PM? A good PM typically has a program that reviews the PM’s performance, providing recommendations for improvement when necessary.
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VALUE 24
EXECUTED LEASE
DEFINE PROJECT GOALS (SPACE, TIME & MONEY) • Manage Design Team Selection • Define SF Requirements
SITE SELECTION
• Define Technology Requirements
• Manage Test Fit Process
• Provide Occupancy Benchmarking
• Prepare Comp. Building Analysis
• Develop Probable Cost Models
• Develop Comp. Probable Cost Models
• Develop Probable Project Timeline
• Develop Comp. Probable Project Timeline
SUPPORT LEASE NEGOTIATION • Negotiate Physical Requirements • Negotiate Work Letter
DESIGN OVERSIGHT
• Define Landlord Obligations
• Manage Design Team Selection
• Finalize Probable Cost Model
• Manage Engineering & Consultant Team Selection
• Finalize Probable Project Timeline
VALUE ADDED
OCCUPANCY
TRANSACTION VALUE CHART
• Validate Design Against Scope Requirements, Budget & Timeline
ABILITY TO INFLUENCE COST SAVINGS CONSTRUCTION OVERSIGHT • Manage General Contractor Prequal & Selection • Lead Project Meetings & Process • Scrutinize Change Order Process • Manage General Contractor Against Budget & Timeline
RELOCATION OVERSIGHT • Manage Mover Prequal and Selection • Develop Move Plan & Directory • Develop From/ To Matrix
PROJECT DURATION
TRANSACTION SUPPORT
PROJECT OVERSIGHT & COORDINATION
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The early phases of a project provide the most opportunities to influence its success. An experienced JLL Project Manager, involved early and fully focused on the client's goals, allows a project to start on the best possible foundation. Ongoing management through design, construction and close-out builds on this foundation. While the Architect and Contractor are key team members, their responsibilities are more narrowly focused.
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INITIATE PROJECT REPORTING
PLAN DESIGN
(ARCHITECT)
CONSTRUCT
(CONTRACTOR)
PROJECT CLOSEOUT
OCCUPANCY
MOVE-IN MANAGEMENT
FURNITURE
EQUIPMENT
SAFETY & SECURITY
INFORMATION SYSTEMS
OWNER'S CONSULTANTS
OPERATIONS MODELING
THE RIGHT TEAM FOR THE PROJECT
CONTRACT COMPLIANCE
CONSTRUCTION CLOSEOUT
CONSTRUCTION MGMT.
BIDDING
DEMOLITION
PRE-CONSTRUCTION SCH.
PRE-CONSTRUCTION EST.
PROGRAM VALIDATION
CONSTRUCTION ADMIN
REALISTIC PROJECT SCHEDULE
BID DOCUMENTS
LIFE CYCLE STUDIES
SYSTEM ANALYSIS
ENGINEERING DESIGN
ARCHITECTURAL DESIGN
SCHEDULE VALIDATION
PROGRAM VALIDATION
CODE REV. & ANALYSIS
TESTING & INSPECTION
ACCURATE PROJECT BUDGET
PROJECT ACCOUNTING
FINANCING
ENTITLEMENTS
CONTRACTS
TEAMS SELECTION
PROJECT SCHEDULE
PROJECT BUDGET
MASTER PLANNING
SITE SELECTION
PROGRAMMING
PROJECT PLANNING
ABILITY TO INFLUENCE PROJECT SUCCESS
CRITICAL FACTORS FOR A SUCCESSFUL PROJECT
STRONG CONTRACTS THAT REDUCE RISK
PROJECT MANAGER'S SPAN OF RESPONSIBILITY
CLOSE
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REINVENTING THE OFFICE TRADITIONAL
MODERATE
PROGRESSIVE
PRIVATE OFFICES
OPEN PLAN
ACTIVITY-BASED OPEN PLAN
HYBRID MOBILITY
FULL MOBILITY
Fully assigned offices and/or high partition workstations
Fully assigned open plan workstations
Fully assigned open plan workstations and a variety of support spaces
Mix of unassigned and assigned workstations and a variety of support spaces
Fully unassigned workstations and a variety of support spaces
300-250 SF/Person
250-200 SF/Person
200-150 SF/Person
150-100 SF/Person
100-50 SF/Person
PROFESSIONAL SERVICES
PHARMACEUTICAL, FINANCIAL, INSURANCE
TECH, CREATIVE AGENCIES
IMPACTING RENT*: $36M
$30M
$24M
$18M
$12M
*Assumptions: 10 Year Deal; 300 Employees; $40/SF Rent
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RETURN ON INVESTMENT
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SAMPLE BUDGET - 25,000 SF TI IMPROVED COST EFFICIENCIES
$120/SF JLL TEAM
$90/SF
PM FEE PM FEE SOFT COSTS SOFT COSTS
414% ROI
$310,500 SAVINGS
HARD COSTS
6 MONTHS
HARD COSTS
5 MONTHS
IMPROVED SCHEDULE AND LEAD TIMES 31
NOTABLE CLIENTS
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PROUDLY since
1967
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If you’re looking for real results, ‘Why hire a Project Manager?’ isn’t the question you should be asking yourself, but rather ‘How can you afford NOT to hire a Project Manager?’ Not only will a good PM make sure everyone is in the right place, at the right time, doing the right things, but a good PM will deliver optimal results, saving your organization real time and money in the process. With so much at stake, including your reputation, you can’t afford to make mistakes. So, sit back, relax and leave the juggling and headaches to the pros.
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