What it is and why you need it!
By FRANK RICCI
Today I would like to introduce you to the concept of “Turnkey Project Management (TPM) for Real Estate” and how it will simplify your life. Signing a lease or purchase agreement is only a thin slice of the work required to get your office up and running. The concept of TPM provides for a Single Source of responsibility through a Project Manager (PM) and encompasses all of the tasks necessary to get your facility ready to open, including these key elements:
Due Diligence – Due diligence is the upfront work required to determine the best location within a geographical area to locate your practice and includes demographic analysis, a competitive market survey, space programming, budgets, traffic studies, zoning, lease/purchase analysis and other site specific studies. A PM will coordinate the performance of all of these activities.
Lease/Purchase Negotiation and Execution – this is the work that brokers typically focus on and is an important part of the process. There are typically many deal points that must be negotiated to ensure the best possible outcome. A PM must be a broker with specialized knowledge of medical real estate. A PM must also be able to work with financial institutions to negotiate the best terms and conditions for your project financing.
Design & Permitting – If there are going to be any construction or renovations performed, it is necessary to identify, compare and select the best architect, engineers, interior designer, consultants and equipment suppliers and installers for the project. A PM will have contacts within the industry in order to help select the firms best suited for your particular project based upon size, experience, quality, and availability.
Value Engineering – A PM should have specialized knowledge of the construction industry in order to identify materials, methods and means to shorten the project timeline and/or to save costs without sacrificing quality.
Construction – A PM will oversee the distribution of plans and specifications to various qualified contractors and oversee the bidding process. Working with the client and the architect, the PM will help select the winning bidder, determine the draw process, ensure that an adequate safety program is established, coordinate the various consultants and provide general supervision of the construction process including site visits and photographic/video evidence during each stage of construction.
Cost Segregation – During the construction phase, an experienced PM will work with your architect, contractor and tax advisor to identify and separate costs for individual building components that will be used in a Cost Segregation Analysis. This analysis can be of enormous financial benefit and save you significant amounts of money for years to come.
Move in & Grand Opening – Upon completion of the construction, there is now the enormous task of moving and installing equipment, furniture, interior design elements and personal touches. A PM will coordinate all of this work in preparation for your Grand Opening. Your PM can also coordinate with a public relations firm with medical expertise to get the word out and handle all of the event details for your eventual Grand Opening.
As you can see, simply signing a lease or a purchase contract is just the tip of the iceberg. A PM, as a single point of contact, can relieve you of the many details, decisions, calls and trips necessary to get your office open and ready for business, on time and on budget.
Frank Ricci is a principal with Healthcare Realty & Development Services, LLC a leading Total Project Management firm with over 35 years of experience based in Winter Park, Florida. Frank is a licensed real estate broker and licensed building contractor with extensive experience in “Turnkey Project Management.”
For more information email Frank at Healthcare Realty & Development Services at
FrankR@HealthCareRealtyOnline.com.
Or visit www.healthcarerealtyonline.com
