Project managers admit too many companies overcharged for services

Hundreds of companies are paying too much for their project management contracts according to market research by a leading supplier of skilled consultants to the digital, telecoms and media industries.

Almost 90 per cent of experienced project managers who answered the survey, carried out by PM3 Consulting, said they believed the margins charged to clients for consultants and project managers should be below 20 per cent.

Steve Pragnell, CEO, believes the results justify his companyís policy of providing solutions at highly competitive rates; ìCompanies should not have to face excessive charges for contractors. People in the industry are asking for a change.î

ìThe industry is now populated by highly skilled and trained professionals ñ but it is essential that we provide real value for the money.

ìPM3 Consulting understands the value of building long term relationships with clients and nurturing repeat business. You canít do that if the client feels it is being overcharged.î

Feedback from the survey also made it clear that consultants find it harder to work effectively if their clients think they are paying over the odds for their services.

More than half of respondents (51%) even suggested that the premiums charged on a contractor should be below ten per cent.

ìThis survey is an important milestone for this industryís evolution,î says Pragnell. ìIt shows that taking note of the feedback from Project Managers is vital if you want to grow your business and keep your clients.î

Pragnell is also predicting a steady growth in the industry in 2008 and competition for client business becoming more competitive.

ìDemand for project management and consulting services in the digital, telecoms and media arena will definitely rise this year. The successful companies will need to focus on providing real value with their service.î says Pragnell.

PM3 obtained its results for the survey sent to 500 project managers answering questions on a dedicated web site.