Management company in project construction

There is no practical experience in this area. The topic is great; those with experience in this area are welcome to answer.

I don’t think it’s a matter of whether the disadvantages outweigh the advantages or vice versa; rather, it’s the case that you truly don’t understand that industry, and your own management experience is not sufficient to oversee the construction of unfamiliar projects. In such situations, it’s inevitable to use a project management company. The question is what type of model to adopt, such as EPC, CM, or some other project management approach

If you decide to hire a professional management company, it means you have determined that the benefits outweigh the drawbacks; otherwise, you wouldn’t do it

I think every management approach has its advantages and disadvantages; it depends on whether that approach is suitable for the characteristics of the project. For carrying out project construction across different industries, since the developer has no knowledge of that industry, hiring a professional management company is a good option. However, to manage this project successfully, first of all, it is necessary to select a qualified (preferably excellent) management company, as this ensures that half of the success in managing the project lies in that choice ； Second, establish sound management systems and evaluation methods to supervise and inspect the management company, ensuring that all departments of the constructor and the management company operate effectively, each fulfilling its own responsibilities, rather than relying on one party to take care of everything.

Characteristics of project management by project management companies: Advantages: 1. Scientific management of various stages, with dynamic optimization across all aspects, throughout the entire process, and in all relevant specialties； 2. Diversification of contract strategies and methods ； 3. Unified procurement and material management for multiple projects; through framework agreements, procurement costs are reduced and the procurement process is accelerated ； 4. Promote cooperation among various subcontractors to resolve interface issues ； Disadvantages: 1. Lower exposure to project risks ； 2. Limited enthusiasm for investment control and schedule control ； 3. The management fee is high.

I would like to ask the original poster one more question: If a company has sufficient management capabilities for subsequent construction projects but does not possess **the required supervision qualifications, will the inspection report generated at the final acceptance stage not be recognized by the relevant authorities?

Manage a company? The results are just average. I believe that managing a company can only provide support in an indirect manner; if it tries to take charge directly, the results will be much worse. There is an oil refining project in Guangxi – with many PMTs, and their skills vary greatly. It’s obvious

To implement a project management system, the self-management approach adopted by project owners is generally too outdated, preventing improvements in management standards. Domestic construction companies prefer to take matters into their own hands, thinking it gives them more control, but this is completely wrong.

First, consider the project model: is it EPC, E+P, or E+C? Or does the owner handle everything themselves by hiring only a PM? If a PM is hired, in China this essentially means hiring an additional supervisor – such is the national situation and reality. But abroad, it’s different; the PM company takes care of the entire project on behalf of the owner, so the owner doesn’t have to worry about anything. This is something that cannot be achieved in China; experience is required for that

It is strong for joint ventures or wholly-owned enterprises, while state-owned enterprises show poor performance. Many rights have not been granted to the management company.

A management company and a supervision company are two different concepts; even if there is no management company, as long as there is a supervision company, the acceptance report issued by that supervision company will be recognized by the relevant authorities.

In fact, it is understandable for owners to be wary of PMC management companies, as after all they are not in a shared interest group; unless the two parties cooperate in a PMC+partner format

No, it’s not necessary to hire a manager, but at least a supervisor should be hired

Typically, large-scale projects, those with high professional requirements, or foreign-funded companies hire professional management firms, as this ensures better control over project quality and costs. Moreover, it does not require a large number of staff to be involved; a few supervisors with some experience are sufficient.

There are several ways to describe the advantages in textbooks. 1. Make the use of resources in the project construction process more efficient, reduce waste, and save costs. 2. Create new value in the management process. 3. Sometimes hiring a management company is also a way to share risks. In China, it’s better to work for a good management company; many of these positions are obtained through connections, and the work is done in the usual way – neither too much nor too little. . .