Wednesday, April 6, 2016

ESTATE MGT.: REAL ESTATE SUMMIT 2016

THEME: TOWARDS INTERNATIONAL BEST PRACTICE: THE EFFECTS OF STANDARDIZATION.
DATE:    6TH APRIL, 2016.
VENUE: ENVIRONMENTAL FACULTY AUDITORIUM.

TOPIC: The Role of Project Management in Estate Management
BY: Oluwapelumi OYETIMEIN.
(Member, Project Management Institute. 2015 & 2016 #YTech100 Honouree.)

INTRODUCTION
In the past few years, the practice of Project Management has continually been on the increase with many professionals realizing that it essentially makes their job easier and by extension, their lives.
There are different Project Management methodologies and schools of thought, certifications as well.
Estate Management is almost as old as man himself and with the advent of Project Management, sanity is introduced into the field of Estate Management.
Introduction – The Definitions
      Estate Management is the supervision and control of interest in land and landed property with the aim of securing socio-economic benefits.
      Project: This is a temporary endeavour designed to produce a unique product, service or result with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables) undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. [1]
      Project Management is the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria. [2]
Estate Management - What It Entails
      Real Estate Agency
      Property Management
      Feasibility & Viability studies
      Valuations
      Facility Management
      Investment Advice
      Assets Audit
      Building Survey
PROJECT MANAGEMENT - WHAT IT ENTAILS.
Project Management traditionally entails 5 stages.
      Initiation
      Planning (and Design)
      Execution (and Construction)
      Control (and Monitoring)
      Closing (and Completion)
Others include Agile which involves iteration, Lean PM amongst others.
Little History
      There are two public fathers of Project Management.
      Henry Gantt (1861-1919) – father of planning and control techniques.
      Henri Fayol (1841–1925) – created the five management functions (planning, organizing, staffing, coordinating and controlling).
      Both were students of Frederick Winslow Taylor’s (1856–1915) Scientific Management principles.
      Scientific management is the administration of a business, industry, or economy, according to principles of efficiency derived from experiments in methods of work and production.
Estate Management in Nigeria – The Figures
      820 NIESV-registered real estate firms. [1]
      1973 NIESV-registered real estate professionals. [2]
Roles PM Can Play in Estate Management
Project Managers can play several roles in the real estate industry but the most obvious needs are in Facility Management and Construction (Property Development) Management.
      Facility Management: A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology. [1]
      Construction Management: Organizing, scheduling, mobilizing, and directing equipment, material, and personnel in performance of a construction contract. [2]
Top Five benefits
      Higher level of Efficiency
      Better Quality
      Better client satisfaction
      Higher quantity
      Higher profits
Implementation Challenges
      Inadequate skills
      Cost constraint
      Unavailable Manpower
      Team dynamics
Case Studies – Failed Projects
Lekki Gardens Residential Development
As a result of improper project management, two unplanned floors were added thereby putting lives and property in danger.
The Lekki Gardens Company has lost its reputation and is also embroiled in a court case to determine the extent of its liability.
Case Studies – Successful Project
Eko Towers (not the Hotel).
It is a mixed-development complex that was actually built by Total on a Build-Operate-Transfer basis.
The 17-level high-rise includes completely fitted out office floors, an auditorium, company restaurant, heliport, etc.
The land was leased to them by Eko Hotel.
Observations
      The bigger companies are the ones who are able to hire competent Project Managers. Smaller companies usually can’t hire too many team members due to cost.
      Also, some companies don’t see it as a necessary phase in real estate development and management.
      With the proliferation of estate agents, too many people building their houses themselves and without professional input, real estate projects are continually being built by quacks.
      In a Nigeria where the average graduate is not employable[1], competent and certified project managers are not particularly available for employment as they are in high demand.
      The adoption of Project Management is still in its early stages in Nigeria despite three Universities offering it as full undergraduate courses.
      Nigeria suffers from a lack of a very good data management system so gathering statistics could be very cumbersome.
Recommendations
  1. More schools should offer Project Management as an undergraduate course.
  2. Companies can also engage in talent development. Train manpower and let it work for you.
  3. The cost of Project Management training can be subsidized as well.
  4. Data management should be implemented so the actual dearth of talent can be known and a way forward can be planned.
Thank You For Listening!
pelumi@pelumionline.net
www.oluwapelumi.com
This presentation is available for download - http://j.mp/resummit16



#RESUMMIT 2016

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