When and why you should choose an external project manager
This is a tale about two very similar projects, with similar results. The results were not good for either project, but for different reasons. The outcomes for both projects would have been different, had the organisations involved only done one thing!
Both projects involved converting existing spaces into new specialist rooms. This meant the construction team did not need to start a new building, but still do more than mere cosmetic changes to the structure to bring it into line with its intended future use. Both projects required artisans across multiple spheres, e.g. plumbers, HVAC (heating, ventilation, and air conditioning) expertise, and electricians.
Case Study 1
In the first case study, a food manufacturer needed to convert an existing room into a laboratory. The project was led by the company’s CFO. She had decided to use the contractor already onsite, who was dealing with various building maintenance issues. This contractor did recommend that the organisation hire an external project manager, who has experience in this type of specialised construction, but the accountant believed she was competent enough to do this without additional assistance.
Not only did she not have sufficient time or project management skills, she lacked understanding of Good Laboratory Practice and how this would impact the required construction. If she had, she would have known that the contractor did not have the necessary skills or qualifications to outfit a lab. While company 1 may have lab now, it is questionable whether it would pass any safety inspections.
Case Study 2
The second case study started out very differently: the business set up the project properly, including identifying an internal project manager. They created a compelling business case, as well as a comprehensive document, to provide a variety of interested parties with enough information to quote on the construction of a clean room. A clean room is a controlled environment free from contaminants and pollutants, and is used most often in the medical and electronic environments.
The business had done their due diligence on each contractor, eliminating a potential problem service provider, with the tendering process. The two finalists both recommended a construction project manager to drive the project and manage all the required subcontractors.
And then the project sponsor stepped in. He was not happy with the costs, believing that the clean room construction could be done faster and cheaper by a friend of his. So the friend’s construction company was appointed and the friend would also act as the project manager. This meant that the internally-appointed project manager’s load would be less.
After the project was running two months late and still not completed, the organisation’s management team stepped in and fired the construction company. Not only had they wasted money and time but, when the new contractor came to site to review what was done, they recommended that all the work be ripped out, as it would not pass inspection for a clean room.
What to do?
Based on these two case studies, it should be obvious that – when dealing with construction, at least construction projects beyond cosmetic upgrades – it is best to bring in a project manager with the appropriate experience. When else should you look externally for a project manager?
Any project that is a once-off (such as construction, but other examples include implementing new software, adding a new manufacturing line, or moving offices) should be managed by someone with experience in that area. This often means an external project manager.
The examples above also underpin another reason to bring in an external project manager: when the project requires specialist knowledge outside your organisation’s area of expertise.
Another compelling reason to bring in an external project manager, is if your employees do not have the capacity to run the project. If your staff is busy with important operational requirements, i.e. their jobs, will they be able to attend all the required meetings, as well as deal with all the required documentation and follow-ups?
On the other hand, if the project’s continuous improvement relies on in-depth knowledge of your business and your operations, then keeping it in-house may be the best answer.
Finally, if a contractor suggests bringing in an expert, do consider it seriously!