Implementation Model of Project Management Office

in Real Estate Development



By Habib Fayadh, PMP

PMO Director,Meinhardt

Riyadh, Saudi Arabia




This research proposes an implementation model for Project Management Office (PMO) in the real estate development industry. Real estate development is a heterogeneous business and can face many uncertainties due to economic conditions, regulations, financing, competition and project execution delays. It is perceived that (PMO) plays an important role in coping with such uncertainties and offers a practical methodology in managing real estate development projects efficiently. The model presented in this paper is based on literature review and the author’s experience in PMO, project execution and real estate development. This study shows the position of the PMO in the organization structure together with the authorities and responsibilities assigned to it, are an integral factor of its success.

Key words: Project Management Office (PMO), Real Estate Development, Success Factors, Implementation Model.


Real estate development is a project-based business that accomplishes its goals through implementing highly diversified physical projects. Project development in the real estate industry is a complex process and has a long lifecycle from initiation to completion. The development process is multi dimensional, capital intensive, multi disciplinary, economic conditions related, public private interactive, time consuming with extremely diversified stakeholders. The development process in real estate starts with simple a concept: Land looking for use, or use looking for land to end up starting a long process that results in a major physical asset to generate profit to the shares holders. In addition, the risks and uncertainties in such an environment are high and require highly systemised methodologies to manage these endeavors.

A real estate organisation like any business is presented continuously with many challenges, opportunities and uncertainties. This requires an efficient vehicle to analyse, prioritise, align what comes in its way to decide what to work on and what to invest in and what to drop.   For this reason, organisations invest heavily in developing strategies and plans. Strategies reflect an organisation’s awareness of its markets, competitors, regulatory environment, economical forecasts, its future trajectory, and its present capacities and potentials. It integrates and translates the vision of corporate leaders and stakeholders with the plans for making that vision a reality over time (Crawford, 2010). However, recent statistics shows that the success rate for strategy execution stands between 10% and 30% (Chuah et al., 2016). As per (Okumus, 2003), organizations fail to implement more than 70% of their new strategic initiatives. These companies are like a body whose brain is unable to tell it what to do (Crawford, 2010).

For professionals coming from real estate development, the only way to translate the real estate development corporate’s vision into reality is through executing successful and efficient physical projects. Regardless of the complexity and diversified long lifecycle of real estate development projects, project management practices and methodologies is the only vehicle capable of transforming the vision and strategic plans into reality and capable of optimizing values from investment. To manage the project management, we need special vehicles like Project Management Office (PMO). Exhibit 1 conceptualises this fact.

In Exhibit 1, the PMO serves as the bridge between the organisation’s vision and the actual work of the project implementation. The PMO in this context is expected to provide a systematic methodology for selecting, prioritising and aligning the proper projects, and then plan, staff, execute, control and report the status of each development to the executives.

The purpose of this research is to propose and discuss an implementation model of PMO in real estate development organisation.



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How to cite this paper: Fayadh, H. (2020). Implementation Model of Project Management Office in Real Estate Development; PM World Journal, Vol. IX, Issue IV, April.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/03/pmwj92-Apr2020-Fayadh-PMO-implementation-model-for-real-estate-development.pdf



About the Author

Habib Fayadh

Riyadh, Saudi Arabia




Habib Fayadh is PMO director at Meinhardt. With over 20 years of experience in construction, PPP and real estate development, he has served as Vice president, PMO director, project director and delivery director in real estate development, PPP and construction industries. He managed the complete lifecycle of several real estate development projects (initiation, due diligence, feasibility, design, procurement, construction and handing over) in hospitality, retail, commercial and housing. He also served as construction manager for the construction of several hi-tech projects including oil and gas, x-ray inspection systems, hospitality, theme parks and retails. He is also a licenced engineer in Saudi Arabia.

Habib assists real estate development, engineering and construction organisations, as a Subject Matter Expert, to achieve their strategic business objectives, by providing analysis, managerial and methodological proposals that could allow organisation complete their projects on time within budgets and at the expected quality. He established and managed 3 PMOs for real estate development organisations in Saudi Arabia, integrating project management methodologies and tools in the business operations.

Mr. Fayadh holds a bachelor’s degree in Civil Engineering and a Master of Science degree in Construction Engineering and Management from King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia. He earned the PMP certification in 1990.  He is a co- author of “Building Construction Detailed Estimating Practices in Saudi Arabia” a technical paper published in ASCE journal. He is currently working on a technical paper on the “Challenges of Real Estate Development in Saudi Arabia”.

Habib Fayadh can be contacted at fayadhh@gmail.com

LinkedIn: https://www.linkedin.com/in/habib-fayadh-30a58822/