Sow and Reap

Currently, we are looking to refurbish a block of flats we have in NW London.  The cheapest quote I got was from a builder who could do the whole lot for £180K.   
  
There are 6 flats which were formerly one bedrooms, and are now being converted to 2 bedders, which places them below the national guidelines.  This is not an issue for the council who is looking to take the properties on once refurbished, or for renting them out on the open market.   
It becomes an issue when you wish to sell, and the buyer needs a mortgage on the property; this is where things will fall apart.  Unless, you simply add a dining table instead of a bed and call it a one bedroom flat, this will get you past this issue, but the values then may not stack up.   
Anyhow, we were prepared to press the button on the build.  The builder, however, got distracted with other jobs and became too busy to start the contract.   
In the interim, I got talking to a property developer who develops up North.  He continually does refurbs for what seems like pennies to me.  He has been brought up on building sites from a very young age.  He knows how long it would take, and how much it would cost to plaster a wall.   
He gets involved with the build, personally appointing each of the contractors separately, and overseeing them.   
This got me thinking about our little job.  How could I take off all the fat the builder normally takes and still get the job done properly?  This is a refurb project and doesn’t involve any major structural changes, only the chimney removals.   
In order to resolve this issue I thought it prudent to consult a project manager.  He can then appoint each of the tradesmen to ensure the work is done in the right sequence and in a timely manner.   
This will plug the potential holes in the project and ensure a smooth delivery without any compromise.  Using this method we managed to get the build cost down to £100K, 55% of the original cost.   
This represents a substantial saving from the original contract price, however, I was hoping to drive down the price even further, but I kept hitting a brick wall and so left the price where it is; at the end of the day I don’t want them to walk off site.   
The build cost, low as it is, will mostly be covered by the council, as they have kindly offered £65K of the cost of building as a grant towards the works, in return for renting the units back to council tenants.   
I, all of a sudden, like council tenants.  The great thing is next year when the chickens come home to roost they won’t lose their jobs, and be unable to pay their rents as they never had one in the first place.   
So, in short, the build cost will come in at a figure of £35-40K net to refurbish 6 flats.   
This helps to take the edge of the slightly expensive bridge we have on the property.