Do you want to be the middleman during your complicated construction project? Hiring experts to do the heavy lifting of coordinating and managing your project provides unbeatable peace of mind. Honorato Company are expert design-build remodelers in Boston, and we offer construction management as a standalone service. One of the most common questions we receive from clients contemplating this service is, “How much will it cost?”. Understanding the expenses of hiring a Construction Manager (CM) is a crucial first step. By partnering with us, you get more than just a builder – you gain a trusted advisor dedicated to transparency, efficiency, and quality. In this blog, we'll break down the factors that influence construction management costs, helping you make an informed decision for your next project.
Key Factors Influencing CM Costs
Project Size and Complexity
The size and complexity of a project are the primary factors that influence the cost of construction management services. Larger projects, such as custom homes or significant additions, require more resources, time, and oversight, which increases the overall cost. Smaller, less demanding projects still need careful management to ensure they stay on track and within budget.
Scope of Services Provided
Construction management can encompass a broad range of services, from overseeing the entire project to managing specific elements like the timeline, budget, or material procurement. The scope of services required directly impacts the cost. For example, a client might hire us purely to manage the timeline and finances or need a full-service approach where we handle everything from design coordination to final inspections. At Honorato Company, our construction management services go beyond what a typical General Contractor (GC) might offer, including detailed project planning, daily site oversight, financial management, and advanced project management software to keep everything organized and transparent.
Time & Material vs. Cost Plus Basis
We offer flexible pricing models to suit different project needs. For smaller jobs, we often use a “Time & Material” basis, where the client pays for the actual hours worked and materials used, plus our markup. We typically use a "Cost Plus" basis for larger, more complex projects. This model involves charging for all project costs plus a percentage fee, offering clients full transparency into where every dollar is spent. Our fees are built on the hourly rates of our team members and markup on materials and subcontractor costs, ensuring fair and transparent pricing.
Hourly Rates for Personnel
The cost of construction management also depends on the personnel involved. Each project gets a dedicated team, including a Project Manager, Site Manager, and general laborers, each with specific roles and hourly rates. Our team also includes specialized roles, such as design professionals and administrative staff, whose hourly rates reflect their expertise and the level of detail they bring to the project.
Markup on Materials and Subcontractors
In addition to hourly rates, we calculate our payment by applying a markup to materials and subcontractor fees. Our markup is 20-30%, which covers the coordination and management required to source high-quality materials and reliable subcontractors. This markup aligns with industry standards and reflects the value-added services we provide, such as thorough supplier vetting and ensuring that all subcontracted work meets our quality standards.
The Honorato Advantage: Construction Management & General Contracting Combined
We seamlessly blend the roles of Construction Manager (CM) and General Contractor (GC), offering a comprehensive suite of services tailored to each client's unique needs. This hybrid approach sets us apart in several key ways.
Transparency and Client Partnership
Unlike many firms that operate behind a curtain of hidden fees and vague costs, we believe in complete transparency. We act as a partner in your project, working alongside you to make decisions that are in the best interest of your goals and budget.
Comprehensive Services
At Honorato Company, our construction management services extend beyond what most GCs offer. We handle everything from high-level project planning and financial management to the nitty-gritty details of daily site operations. This includes creating and managing detailed project timelines, coordinating teams, revising plans as needed, and managing materials. We provide photo and video tracking of progress, giving you visual insights into your project’s development.
Technology Integration
We leverage the latest construction management technology to keep our clients informed and our projects on track. Using BuilderTrend, a state-of-the-art project management software, clients have access to a personal portal where they can view daily logs, see updates to the timeline, access pictures and videos of the project’s progress, and review financial information.
Why Choose Construction Management Services in Boston, MA?
Local Expertise and Market Understanding
Choosing a construction management service that is deeply familiar with the local Boston, MA, market can significantly benefit your project. Honorato Company brings extensive knowledge of the local construction landscape, including understanding city regulations, navigating the permitting process, and building relationships with reliable local subcontractors and suppliers.
Navigating Boston’s Unique Challenges
Boston’s construction landscape is unique, characterized by its historic buildings, dense urban environments, and specific local regulations. A construction management partner like Honorato, who understands these nuances, can save you time and reduce costs. We know the ins and outs of Boston’s permitting requirements, zoning laws, and environmental considerations, which allows us to preemptively address potential issues and keep your project on track.
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Established Vendor and Subcontractor Relationships
Over the years, Honorato Company has built strong relationships with some of the best local vendors and subcontractors. These trusted connections mean we can negotiate better rates, ensure higher-quality workmanship, and have more leverage in scheduling work, all of which contribute to smoother project execution and cost savings.
Long-Term Value of a Quality Construction Management Team
When you invest in construction management services with Honorato Company, you’re not just paying for a service but investing in long-term value. Our commitment to transparency, efficiency, and quality ensures that your project will be completed on time and within budget without compromising on the quality of the work.
- Maximizing Your Investment: We ensure that every dollar is accounted for and spent wisely by providing detailed budget tracking, regular updates, and open communication. Our proactive approach to project management helps prevent costly overruns and reduces the need for change orders, which can often inflate the final project cost.
- Quality Assurance: We maintain stringent quality controls over every build aspect. From material selection to the final inspection, we ensure that every detail meets our high standards and your expectations. This commitment to quality not only enhances the immediate outcome of your project but also contributes to its longevity and durability, ensuring that your investment continues to pay off for years to come.
FAQs About Construction Management
What is included in a Construction Management fee?
A Construction Management (CM) fee typically includes a range of services that are essential for the successful planning and execution of a construction project. Honorato Company's CM fee covers comprehensive project oversight, including coordinating timelines, budgets, materials, and subcontractors. Our fee includes access to advanced project management tools, such as BuilderTrend, which provides real-time updates, daily logs, and financial transparency. Unlike a General Contractor who focuses primarily on field operations, our CM services ensure that every aspect of your project is meticulously managed from both the office and the field, providing a seamless and efficient construction experience.
How are Construction Management fees calculated?
Construction Management fees can be calculated in different ways depending on the scope and scale of the project. For smaller projects, fees are often determined on a time & material basis, where the client pays for the actual hours worked and the cost of materials, plus our markup. We typically use a cost-plus basis for larger, more complex projects, where the fee is a percentage of the total project cost. This approach allows for greater flexibility and transparency, ensuring that clients only pay for the actual expenses incurred plus a predetermined percentage for management services. At Honorato Company, we ensure that our fees are aligned with the value we provide, offering a fair and transparent pricing model that meets the needs of our clients.
How much should project management costs be?
Project management costs can vary significantly depending on the complexity of the project and the level of service required. Generally, project management fees can range from 7% to 15% of the total project cost, especially for larger, high-value projects. At Honorato Company, we strive to keep our fees competitive while providing exceptional value through our comprehensive construction management services.
How does Construction Management ensure project timelines and budgets are met?
Construction Management is all about planning, coordination, and oversight. At Honorato Company, we proactively ensure that projects stay on schedule and within budget. This involves detailed timeline management, regular budget reviews, and constant stakeholder communication. By using advanced project management tools and maintaining high transparency with our clients, we can quickly identify and address any potential issues before they impact the project.
Do I Need a Construction Manager?
If you're planning a construction project, whether it’s a new build, a home renovation, or a commercial development, hiring a construction manager can be incredibly beneficial. A construction manager acts as your advocate throughout the project, overseeing every detail to ensure it stays on track, on time, and within budget. They coordinate all the moving parts—subcontractors, materials, permits, and schedules—so you don’t have to worry about the day-to-day complexities.
With a construction manager, you gain access to expert guidance and a team dedicated to delivering quality results. They help prevent costly delays and mistakes, provide transparent pricing with no hidden fees, and keep the entire process streamlined and efficient. If you want to save time, reduce stress, and have confidence that experienced professionals are handling your project, then hiring a construction manager like Honorato Company is the right choice.
Let’s Team Up to Ensure Your Boston Area Build Goes to Plan
Navigating the complexities of a construction project in Boston, MA requires a partner who understands the local market and offers a level of transparency and dedication that is often hard to find. At Honorato Company, we provide comprehensive Construction Management services designed to give you peace of mind, knowing that your project is in capable hands. Whether you're planning a new build, a major renovation, or simply need expert management of your existing project, we’re here to help. We invite you to contact us to discuss how our Construction Management services can help bring your vision to life. We’re excited to be your allies in building something extraordinary.
