How to Work Out a Project Manager’s Fees for a Double-Storey House Project
Building a double-storey house is a major investment that requires careful coordination between architects, engineers, contractors, and suppliers. Many homeowners and developers hire a Project Manager (PM) to oversee the process — ensuring the project stays on time, on budget, and meets quality standards. But one of the most common questions is: how much should you pay a project manager?
Working out a project manager’s fees depends on several factors, including the scope of work, project value, complexity, and duration. Here’s a detailed look at how to calculate and justify these costs.
1. Understanding the Project Manager’s Role
Before talking numbers, it’s important to understand what a project manager actually does. A PM acts as your representative, coordinating all aspects of construction — from design approval and procurement to site supervision and cost control.
Typical responsibilities include:
- Developing the project schedule and budget.
- Managing contractors and consultants.
- Ensuring compliance with local council regulations and building codes.
- Overseeing procurement of materials and verifying workmanship.
- Reporting progress and costs to the client.
A competent project manager can save you 10–20% in overall project costs by preventing overruns, rework, and delays — making their fee well worth it.
2. Methods for Calculating Project Management Fees
There are three common ways to calculate project management fees for residential projects:
a) Percentage of Project Cost
This is the most widely used method. The PM charges a percentage of the total construction cost, which typically ranges from 5% to 15% depending on project size and complexity.
- For a simple single-storey house, fees might be 5–8%.
- For a double-storey home — which involves more structural design, coordination, and risk — fees generally fall between 8–12%.
- For luxury or custom builds, expect 12–15%.
Example:
If your double-storey house is estimated to cost US$180,000, and your PM charges 10%, the fee would be:
180,000 × 10% = US$18,000
This fee is usually spread across project milestones such as design completion, foundation, superstructure, roofing, and handover.
b) Fixed (Lump Sum) Fee
Some project managers prefer to charge a flat rate, agreed upon after assessing the scope and duration of the project. This option works best when the project scope is clearly defined and unlikely to change significantly.
For instance, a PM might charge US$15,000–US$25,000 for managing a double-storey home with a total build cost of around US$200,000. Fixed fees give clients certainty but can lead to disputes if there are major variations in the work.
c) Monthly Retainer
If your project spans several months or is being built in stages, a monthly retainer may be more practical. In Zimbabwe, project managers typically charge US$1,500–US$3,000 per month, depending on project scale and frequency of site supervision.
This method suits clients who want flexible support or are managing financing in phases.
3. Factors That Influence the Fee
Several elements affect how much a project manager will charge:
- Project Size & Complexity: A double-storey home involves more coordination than a bungalow — extra foundations, staircases, plumbing risers, and roofing work.
- Location: Urban projects may attract higher fees due to logistics and permit requirements.
- Duration: Longer projects mean more supervision and reporting hours.
- Client Expectations: If you require detailed cost reporting, 3D updates, or premium materials tracking, expect a higher fee.
4. Budgeting Tips for Homeowners
- Include PM fees early in your cost plan — don’t treat them as an afterthought.
- Request a detailed proposal outlining services, deliverables, and payment stages.
- Check qualifications and experience. A registered project manager or construction consultant with proven local projects offers better value than a cheaper, inexperienced alternative.
- Negotiate based on scope, not just price. The cheapest quote may omit critical services that cost more later.
Final Thoughts
Hiring a project manager for your double-storey house project is a strategic investment, not an extra cost. Whether you agree on a percentage, lump sum, or retainer, ensure the fee reflects the scale, risk, and professionalism required. A well-managed project not only stays within budget but also delivers a home that stands strong and beautiful for generations.