Project Management Fee

INTRODUCTION

This paper outlines the specific project management services recommended for the following three stages of any development.

1. A new project that as yet has not commenced

2. A project underway though only the design has been completed

3. A project underway that is already within the construction phase

As the services within items 2. and 3. primarily form a subset of item 1, we will identify all of the services normally recommended for a complete project and then list those that are applicable to items 2. and 3.

We note that for most projects the management services provided would be tailored to suite the actual development and the needs of the developer. As this proposal is not related to any one specific project, we will identify as a guideline, the general range of services normally recommended.

1. PROJECT MANAGEMENT SERVICES - NEW PROJECT

For a new development CMR Project Management provide the complete project management service that will provide the overall management and guidance from project conception through to the completion of the defects liability period.

In CMR taking this role, much of the burden of dealing with and co-ordination of all the project parties will be removed. With our system of meetings and reporting, the Client will be completely informed and positioned to make the most important development decisions. CMR Project Management provide experienced construction professionals who act at all times in the best interests of the Client.

For a new project our project management services are broken into two overlapping stages. The first of these is the project initiation stage and the second is the project implementation stage. These two stages and are described in detail below :

1.1 Stage 1 Project Initiation

Project initiation services consolidate the basis of the development and provide the detailed guideline which drives the project from commencement through to completion.

Initially they involve the review of Client project objectives, project scope, functional and financial brief. Following this a feasibility study of the project will be carried out together with an analysis of financing requirements. Finally, the implementation strategy, master program, project procedures manual, and budgets will be established.

1.1.1 - Review Of Client Development Brief, Project Objectives, Project Scope, Functional and Financial Brief

- This role includes a detailed review of any project documentation developed to date and results in the preparation of a report which summarises specific design and contractual issues. This role is vital as it allows the project management group to become familiar with the complete project and will identify obvious deficiencies in project concept.

- If these documents have not been prepared, CMR will lead the Client through the process of developing the Client Development Brief which will be the basis of all following project documentation.

1.1.2 - Feasibility Study and Financing Requirements

- After co-ordinating and receiving approval of the Client Development Brief, concept plans, marketing report and the initial cost plan, CMR will develop a comprehensive financial model which will provide the core information to prepare a complete project feasibility study. With the financing parameters set, we will make recommendations on modifications to the development which will tailor the project to suite the development finance.

1.1.3 - Implementation Strategy and Master Program

- An implementation strategy will be developed in conjunction with the Client and all other relevant parties to the project. This strategy will be formulated on the basis of minimising the project development period while reducing the exposure to development risk.

- Once the development strategy has been finalised, we will utilise this document to prepare the project master program. Once completed the master project program will be used to ensure critical key dates and milestones for both the design and construction are identified.

1.1.4 - Project Procedures Manual

- CMR Project Management will work with the Client to establish a project procedures manual. This manual will identify consultant roles and responsibilities, project document control, meeting and reporting schedules and will establish clear lines of communication and responsibility.

1.1.5 - Project Budget and Cost Management Systems

- CMR Project Management will propose a cost management system to establish accurate project budgets and project cost control. Specific budgets are to be prepared by an independent Quantity Surveyor.

- Methods of monitoring forecast cost to complete, methods of reporting and information management systems will be covered.

1.1.6 - Design Team Selection

- CMR Project Management can identify and recommend to the client the necessary consultants required to carry out the design component of the works. The preparation of consultant engagement documents, tendering, tender assessment and recommendation will be offered as part of this service.

1.2 Stage 2 - Project Implementation

Project implementation includes the implementation of all the design and construction components of the contract. CMR Project Management will utilise all of the documents prepared during the project initiation stage including the Client development brief, concept design, master program and financial feasibility model and guide the consultant and construction teams through the complete design and construction process.

This process includes design co-ordination and management, administration and reporting described as follows:

1.2.1 - Design Management

- CMR Project Management will be responsible for design management and will coordinate the design