Project Management Fee?
- Thread starter DexV2
- Start date
Which builders are charging 20%?!
I will if someone is offering (but there would be a minimum charge) 
what do you mean by 'third part PM', oh do you mean third party PM?
What type of services do you mean?
Firstly I'd want more than 20% ROI on project but that's me.
I know some Perth project managers are quite pricey but they may include an awful lot. I charge 1.5% of construction contract to do what I call project management (assist with design, builder choice/tender, prestart choices, fortnightly report/up date on construction/site and assist with choosing rental/sales agent at end)
Services would include from start to finish:
Finding a property to investing with a report
Submitting all necessary applications
Design, finding a builder
Update report on construction
And what you've said (would there anymore extra important essential services I'm missing?)
Would that increase the %?
Just not financial side of things and the settlement stuff which are usually left to the lawyers anyway.
Definitely in the future I will look for higher ROI projects for investors. I originally thought 20% of the profits would be nice but looking at some of the responses it looks a bit too greedy and ambitious.
I'm now terribly confused. Are you asking if 20% is too much to charge someone to be their project manager for those things? Then the answer is yes.
First finding a site isn't a project manager, nor is the report. You could possibly say the stuff after is though. I think it varies based on the contract amount but I doubt it's more than 5% for after purchase items.
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Yeah I meant if it was too much. Okay so let's say property scouting and project management together, would that warrant a higher percentage like around 3-4% then?
It really depends on how competent you are and what sort of returns they will be getting. If someone brilliant came to me with a project I knew they could pull off and it returned 40% I'd happily pay them 10% to put the whole thing together and manage it but if it was 20% and I wasn't sure how good they are I'd be uninterested even at 3% pm fee
Property scouting or sourcing of the site would be 2% on it's own.
I am looking into having a project managed at the moment.
Size of the development might determine charges as well.
A 5 unit site total build cost of 1.2m will be around 8k per site.
Or just under 3.5 %. This would include all apects of the development from DA to completion. This is what I have been advised to allow for if I choose to have the project managed.
