Managing a property development

The hot seat
Hot seats don't come much hotter than a project manager's. He or she has overall responsibility for the site throughout the project, including making sure everything complies to building regulations and planning permission. Project managers hire contractors and tradespeople, pay wages and even administrate tax. They schedule the work and ensure supplies arrive on time. They're the first to arrive at the crack of dawn at least six days a week and they're the last to leave. They're also responsible for on-site safety and general smooth running.

It's a huge job and even professional project managers find it draining, so you can expect to pay around 10% of the cost of the project to hire one. You can engage a project manager independently (see Building Consultants or Project Management Services in the Yellow Pages). If you take this route, seek recommendations from friends who have used project managers and negotiate a flat fee for the job.

Doing your own thing
Before you rush out to buy a hard hat and a clipboard, ask yourself whether you're really up for the hassle - especially if you've got a full-time job. Remember that a project manager should save you money by sourcing materials at keen prices and keeping the project on track. Inexperienced developers can lose thousands of pounds to poor scheduling and purchasing.

Halfway house
A compromise is to engage a reputable builder to oversee the main building work, delivering the project to you at an agreed stage of completion - typically when all that remains to be done is the decorating. The builder project-manages all the tricky stuff, like deciding when plumbers and electricians should arrive. Then you can dip your toe into project managing by sorting out the decorating, carpet fitting and other final tasks.

On the money
Whatever project management model you adopt, controlling the budget is down to you in the end. Even with a contingency fund built into a budget, unexpected problems can push you into the red. If this happens, don't panic. Sit down calmly with the project manager and think your way out of the situation. Usually this means saving money elsewhere, so it's wise to spend time formulating some ''plan B'' strategies before the project gets underway.

Crews control
The secret to a good relationship with your builder is communication. ''You've got to make it as clear as possible to builders and contractors what it is that you want,'' advises Paul Speed, an experienced Norfolk developer. ''It's no good saying after the event that you wanted a job done this way or that. Get it written down in black and white and then you know exactly what you're getting.'' A bit of trust and respect goes a long way, too. If a builder offers you advice, consider it very carefully indeed!

Paper trail
Keeping on top of the project means keeping on top of the mountain of paperwork it will generate. In addition to estimates, quotes and bills, you'll have to keep track of local authority documentation, certificates and guarantees concerning the work that's been carried out. Vendors will want to inspect these documents so keep them safe.

Thinking ahead
As soon as you begin looking for a property to develop, start collecting recommendations from people who have used reputable tradespeople. If you're doing your own project management, start sourcing materials as soon as you know what the project entails.

The bottom line
Staying sane in the middle of a development project can be tough. Here's some pointers to help keep you smiling.