What is Construction Project Management?
Construction project management is the art and science of planning, organizing and controlling resources to bring a construction project from inception to completion. It encompasses a wide range of tasks and responsibilities, including scheduling, budgeting, resource allocation and risk management.
Effective construction project managers possess a combination of technical skills, business acumen and leadership qualities as well as a deep understanding of the construction industry and the unique challenges of building projects.
Whether you're an experienced construction professional or just getting started, a solid grasp of the principles and practices of construction project management is essential for success.
This article will explore the key components of construction project management, including what it entails, why it's important and how to excel in this challenging and rewarding field.
Why is Construction Project Management Important?
Effective project management helps to ensure that construction projects are completed on time, within budget and to the desired quality standards. Delays and overruns on a building project can result in significant financial losses for stakeholders, including the owner, contractor and investors. Construction project management helps minimize these risks by establishing clear goals, timelines and budgets and closely monitoring progress throughout the job.
Construction project management is also essential for managing risk. Construction projects are complex and involve many variables that can impact the outcome. Effective project management helps to identify and mitigate potential risks, such as cost overruns, changes in market conditions or unexpected site conditions, by implementing contingency plans and risk management strategies.
Finally, construction project management is essential for ensuring the safety and well-being of all involved. Construction sites are inherently dangerous environments, and it's the responsibility of the construction project manager to ensure that all workers are protected and that the work environment is safe and healthy. This requires a deep understanding of relevant regulations and standards and effective communication and collaboration between all stakeholders.
Five Phases of Construction Project Management
Construction projects typically involve several phases that require effective project management, including:
- Planning: The planning phase of the construction project is vital to assess the viability and decide what tasks are necessary to complete a project successfully. Permits and licenses may be required, and once a plan is mapped out, the construction project can begin.
- Preconstruction: The preconstruction phase is where the contractor plans out every step involved in executing the project. This includes designing drawings, creating budgets and selecting materials, workers and permissions. During preconstruction, the project manager will also plan for any potential issues that could arise during the job.
- Procurement and contracting: This phase involves selecting and hiring contractors and suppliers and negotiating contracts. The project manager ensures that the procurement process is competitive and transparent and that contracts are properly executed and managed.
- Construction: This is the execution phase that involves the project's actual construction and is typically the longest and most complex part. The project manager is responsible for overseeing the work of the contractors and suppliers, ensuring that the building is in accordance with the plans and specifications, and managing the budget and timeline.
- Post-construction and project closeout: During this phase, the building project is completed and handed over to the owner. The project manager is responsible for arranging punch list walkthroughs to ensure that all work is completed to the desired quality standards and that the owner is satisfied with the results.
Throughout each phase, the project manager plays a critical role in ensuring that the project is completed on time, within budget and to the desired quality standards.
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Stakeholders in a Construction Project
In every construction job, there are several stakeholders that make up the construction project team. Here are a few of the key project stakeholders involved:
- Project owner: The project owner in a construction project is typically the individual or organization initiating and paying for the project. The project owner is responsible for ensuring that the project's goals are met within a set timeframe, budget and quality criteria.
- Project manager: The construction project manager is responsible for overseeing the management of the entire project. They are responsible for project planning, coordinating, budgeting, communication on project progress and meeting project milestones.
- General contractor: A general contractor is responsible for managing the daily operations at the job site and ensuring that necessary equipment, materials and labor are in place to complete the construction project. General contractors often employ subcontractors to accomplish specific jobs.
- Subcontractors: Construction subcontractors are companies specializing in a specific type of construction, such as electrical or plumbing. General contractors hire them to complete certain aspects of a project. The general contractor monitors the subcontractors' performance and, through punch lists, ensures that all jobs are completed to the required standard.
What is the Role of a Construction Project Manager?
As the backbone of any construction project, a project manager plays a crucial role in ensuring its success. With the responsibility of overseeing every aspect of the project, from budgeting to scheduling and supervision, the construction project manager must ensure that all work is completed with precision, speed, and quality in mind.
In some cases, the project manager may be an employee of the project owner or the construction company, while in others, they may be an independent consultant hired specifically for the job.
The project manager works closely with the owner, design team, contractors, and suppliers to ensure that all aspects of the job are properly managed and that everyone works together to achieve the project goals.
The construction project manager wears many hats while delivering a project. They are responsible for crafting a precise budget and striking cost-effective deals with contractors, arranging a seamless project timeline, selecting the most efficient construction methods and staying in touch with clients. They must also possess exceptional communication skills to coordinate effectively between the various teams.
The ultimate goal of a construction project manager is to guarantee that all projects are completed on time, within budget, and to the highest standards. With the right combination of skills, knowledge, experience and support from construction project management software, a project manager can truly be the driving force behind a successful project.
Construction Project Manager Skills
A construction project manager is responsible for delivering complex projects and needs to have a wide range of skills to be effective in their role. Some of the essential skills include:
- Technical knowledge: A strong understanding of construction processes, materials and equipment is essential for effective construction project management. This requires a deep knowledge of building codes, safety regulations, and industry standards.
- Leadership: The project manager must be able to lead and motivate the project team and establish clear goals, expectations, and project timelines. They must also be able to resolve conflicts and manage risk.
- Communication: Effective communication is critical for construction project management, as the project manager must communicate effectively with the owner, design team, contractors, suppliers, and other stakeholders. This requires excellent interpersonal and negotiation skills and the ability to communicate complex technical information clearly and concisely.
- Financial management: Construction projects are complex and require effective budgeting, forecasting, and cost management. The project manager must have a strong understanding of financial management and be able to develop and implement effective strategies for cost control and managing the project budget.
- Risk management: Construction projects involve a wide range of risks, including cost overruns, changes in market conditions, and unexpected site conditions. The project manager must be able to identify and mitigate project risks through risk assessment and implement contingency plans as needed.
- Scheduling: Construction projects require careful planning and coordination. The project manager must be able to develop and implement an effective project schedule and ensure that all work is completed on time.
- Adaptability: Construction projects are dynamic environments that are subject to change. The project manager must be able to adapt to changing circumstances and proactively manage uncertainty and risk.
By developing and refining these skills, construction project managers can position themselves for success and help ensure their projects are completed on time, within budget and to the desired quality standards.
Construction Project Management Software
Construction firms use a variety of tools to assist with delivering successful projects, including:
- Project management software: Construction project management software is designed to help construction firms plan, execute and track construction projects.
- Construction accounting software: Construction projects require effective budgeting and job cost accounting. Purpose-built accounting software for the construction industry is designed to help construction firms manage their finances and track costs for each job.
- Scheduling tools: Scheduling tools such as Gantt charts, PERT charts, and critical path method (CPM) software are used to create detailed project schedules, track progress and manage resources.
- Document management software: Construction projects generate a large amount of project documentation, including plans, specifications, contracts and change orders. Document management tools help construction firms manage and share their project documents.
- Risk management software: The complexity of construction projects means that they involve a wide range of risks. Risk management tools such as Monte Carlo simulation, decision trees and sensitivity analysis are used to identify and quantify potential risks and to develop risk management plans.
- Communication tools: Effective communication is critical for construction project management. Communication tools are used to facilitate collaboration between team members and stakeholders.
- Construction equipment tracking tools: Construction equipment tracking tools monitor construction equipment’s location, usage and maintenance. Equipment tracking software helps construction firms improve efficiency, reduce costs and manage risk.
- Punch list software: Punch list software keeps track of tasks and manages project checklists. It enables construction project managers to quickly identify problems, assign responsibility and ensure that subcontractors complete projects to the contract specifications.
How Deltek Supports the Construction Industry
Deltek ComputerEase is the leading construction software for job cost accounting, project management and payroll services—delivering solutions that help customers connect and automate the project lifecycle that fuels their business. Deltek's dedicated team is committed to providing service excellence and product innovation, adapting to the evolving construction compliance requirements.
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