When the Guide Works for You, Not the Builder: Protecting Your Society in Redevelopment

Can a Project Management Consultant truly defend your rights if the builder is paying their fees?

Housing societies increasingly appoint Project Management Consultants (PMC) to guide redevelopment. Legally and practically, the PMC must be the society’s independent advisor. For that reason, the society should pay the PMC directly instead of asking the builder to bear the cost.
When the builder pays the PMC, a clear conflict of interest arises. The consultant’s fees depend, in substance, on the party whose offer and conduct they are required to scrutinise. This undermines the PMC’s duty to protect the society’s interest in areas like feasibility, tender conditions, extra area, corpus, rent, and quality control. If a dispute later reaches a court or authority, such an arrangement can be criticised as biased and contrary to principles of transparency and fair dealing.
Co‑operative housing law and government guidelines on redevelopment expect the society to take informed, independent decisions. The PMC’s role is to help the general body understand technical, financial, and legal implications and to verify the builder’s claims. That independence is credible only when the society appoints and pays the PMC from its own funds, under a clear resolution and written agreement.
Direct payment also improves financial transparency. The PMC issues invoices to the society, which are properly recorded in the accounts and audited. Members know the exact fee and can evaluate whether it is reasonable. If the builder pays, the cost is usually hidden in the construction rate or commercial exploitation, making it harder to prove what was actually paid and for what services.
Finally, when the society pays the PMC, it can enforce performance: set milestones, demand reports, and, if necessary, terminate the consultant for unsatisfactory work. In a builder‑paid model, control over the PMC is diluted. For sound governance, accountability, and legal defensibility, the society should always pay its PMC directly.