Owner/Builder versus Project Manager

If you’re considering renovating a property, one of the crucial early decisions you’ll need to make is whether to run the project yourself as an owner/builder, or hire a project manager to do it for you.

The route you choose to go down will depend on your own circumstances, and there’s a lot to weigh up. Here’s what you must keep in mind when making the decision:

As an owner/builder

If you go the owner/builder route, you:

• Have total control over the project, including budgets and timeframes
• Must apply for an owner-builder permit for works over $12,000
• Will need to take out domestic building insurance
• Can potentially save money by going DIY

This option can work well for those who don’t have a set time-frame (for example, if you’re not renovating with a view to selling at a profit) and can space the project out in stages.

Many renovators, particularly inexperienced ones, seriously underestimate the time, money and stress involved. While running the project yourself will give you complete control of the process, it’s often best for those doing minor, simple renovations, or people with skills and experience in renovating residential properties.

Many renovators who opt to do the work themselves as owner/builders hope this will save them money, but that’s not always the case. Those who lack know-how can all too easily make mistakes that require expert assistance to fix, often blowing out costs. And subpar work by unskilled handymen doesn’t add value to a property.

As an owner/builder, there is a certain amount of paperwork that must be dealt with. An owner-builder permit must be applied for if doing large-scale works; this requires you to guarantee all work undertaken, accept all the risks and responsibilities of being a registered building practitioner, confirm licensing of all tradespeople hired, and take out all required insurances, among other requirements. It’s important to note that owner/builders still need to hire licensed tradespeople for certain jobs, like electrical work.

Hiring a project manager

If you engage a project manager to oversee your renovation, they will:

• Oversee the whole process on your behalf
• Organise tradespeople and suppliers (a good project manager will have established relationships with quality professionals)
• Co-ordinate and schedule the project
• Manage the budget and deal with council regulations
• Have a high level of expertise and be equipped to deal with emergencies
• Keep the project on track – vital if you have a set deadline for completion

Expert assistance may initially seem the more expensive option, but a skilled project manager can actually save you money by negotiating with tradespeople and ensuring all work is of the highest standard, something the homeowner may not have the expertise to accurately judge themselves. The services of a project manager will generally amount to 10% – 20% of the cost of the total renovation. It’s important to budget carefully and weigh up the benefits.

Before hiring a project manager, there are several things you should asses. These include ensuring the project manager is properly licensed and has appropriate insurance, their availability (for example, how easy will it be to reach them in an emergency?), and whether they will personally supervise all work. You should also ask to see examples of their previous projects so you can get a sense of the quality of the work.

Both options have their benefits, so it’s important to do some research to determine which is best for you and your property.