OREANDA-NEWS. April 5, 2011. PM Expert, a unit of ARMADA group (MICEX, RTS: ARMD), hereby announces that it has started providing services of the management of investment and construction projects. The company’s first contract involves the management of a construction of a large sports facility in one of Russia’s regions. According to global practice, the cost of managing investment and construction projects usually makes up from 2.5 to 12 percent of a project’s budget.

The signed contract for the outsourcing of business processes assumes that PM Expert will perform the full range of activities related to managing the implementation of the project, such as supervising the project’s schedule, resources, risks, communications, keeping project records and reports, etc.

“According to global practice, the cost of managing investment and construction projects usually makes up from 2.5 to 12 percent of a project’s budget, depending on the size of the project and the ratio of capital and operating expenses, “PM Expert General Director Alexander Kutuzov commented. “With such expenditures the economic effect amounts to 20–30 percent thanks to such factors as less time required to implement a project, efficient resource management, proactive identification of risks and risk management, budget planning, and management of work with suppliers. “

The Russian government’s priority projects for the next few years include investments in and implementation of large construction and infrastructure projects for the 2014 Sochi Winter Olympics and the 2018 FIFA World Cup, as well as development of the defense sector, transportation system and others.

“Given the rapid development of construction projects in Russia, we expect the market for the outsourcing of project management to expand, and target a share of between 20 and 30 percent of this market in a midterm” Alexander Kutuzov added.