We live in the information age, and those who use information correctly gain a competitive edge. However, it’s not realistic for everyone to be knowledgeable in every field. In this context, those who specialize in specific areas stand out and make life easier for others. Project management firms, too, use their expertise to ensure that investments proceed smoothly. Project management—which is practically a lifesaver, especially in construction projects involving numerous components—is still in its early stages of development in our country...

Kemal Okumuş is among those who believe the future of project management is bright... As the founder of Integrated Project Management, Kemal Okumuş is confident that project management will continue to grow in our country... Emphasizing that construction is a field entirely based on experience, Okumuş states, “Investors receive support from project management firms throughout all stages of construction. “This way, they both spread the risk and reduce investment costs,” he says. Kemal Okumuş, who is also one of the founders of the Istanbul Project Management Association, shares the following information with us regarding project management:

How did the need for project management arise in the world and in our country?

Project management is a field that originated in the United Kingdom and the United States. In the United Kingdom, there have been companies operating in this field for about 100 years. The foundation of project management rests on the distribution of responsibilities. Since the investing company cannot keep specialists on its own staff for the duration of the project, it outsources this work to other firms.

In our country, project management—which is still in its early stages of development—is primarily utilized by foreign firms. However, domestic firms have also begun to take an interest in project management due to factors such as an increase in the number of projects, the need to accelerate work, and difficulties in finding specialized staff. The Istanbul Project Management Association (IPYD), founded in 1997, played a significant role in the development of the project management sector in our country. Through the meetings and conferences it organized, the association helped raise awareness and contributed to the development of experts in this field. I, too, have tried to contribute by serving in various roles and as president of this association.

What are the stages preceding project management as an investment gets underway?

The investor first contacts a real estate investment advisory firm. The advisory firm clarifies the nature of the investment.

Next, an appraisal firm gets involved. After the land and the project have been appraised, the investor approaches a project management firm. The project management firm then supports the investor with the help of its expert staff in areas such as feasibility studies, design management, contractor and supplier selection, and construction supervision.

What does a project management firm contribute to the investment?

Once the project site and details have been finalized, the investor commissions the project management firm to conduct a feasibility study. The project management firm provides support services on behalf of the investor from the feasibility phase through to project delivery. The architectural design team is selected in collaboration with the investor and the project management firm, in accordance with the requirements of the now-finalized project. Afterward, the project management firm prepares the project budget. It manages the design. It monitors the timeline, budget, and compliance with the initial investment budget for every item the designer proposes. After conducting a pre-qualification review at each of these stages, it prepares the bid documents. The primary function of the project management firm is to provide expert support services on behalf of the investor or financing institution from the beginning to the end of the project. This can be handled by a single person, or you can assemble a team of 15 people.

What are the contributions of project management to construction?

In the past, work was awarded to contractors. The contractor firms—known as general contractors—would negotiate with subcontractors on your behalf. Now, however, the investor, through a project management firm, is reducing the main contractor’s role. By dividing the work into packages—covering all stages of construction, such as excavation, shoring, and reinforced concrete finishing—the investor has the project management firm carry out these tasks. This way, the investor both distributes risk and reduces investment costs.

The target audience for project management is not the construction sector, but the investor. A project manager is the person who ensures the project is delivered within the investor’s desired budget, on time, and at an acceptable quality level—and who assumes responsibility for this. One of the fundamental functions of project management is ensuring the technical quality of the work is accountable. This condition remains valid even five years after the project’s completion.

There is no professional liability insurance system in Turkey. The insurance system is gradually developing, led by foreign-owned firms. As it becomes more widespread, consulting firms and architects will feel the responsibility for their work over the long term. In Western countries, it is not easy to practice project management or architecture without professional liability insurance. This is because those involved can be held liable for damages and losses resulting from a project manager’s wrong decisions or an architect’s flawed design.

Have standards been established in the project management sector?

Regulations for project management. There are none in the world outside of Germany. The PMI in the U.S. offers a series of processes that can be adapted to any sector. But when it comes to the construction sector, there is no written standard here. The project management process evolves according to the requests and expectations of the investor organizations. At Entegre, we have a program we’ve developed that summarizes our activities. In this program, we specify what we will do at each stage.

Project management will continue to develop in our country. The foundation of every project essentially rests on expertise. The reason this practice is more widespread abroad is that investors mitigate their risks by working with specialized firms. Construction is also a field entirely based on experience.

Could you tell us about Entegre’s activities?