CONSTRUCTION MANAGEMENT - Willac Agency

Construction projects are highly structured endeavors, whether that’s building a shopping mall or a single-dwelling residence. They have a lot of moving parts and people that must be precisely coordinated.

Just like any other project, construction project management has phases, from design to planning to scheduling to the build itself. Each of these phases are complicated enough by themselves, but in congress with the whole project, they grow exponentially more complex.

That’s why there’s project management software. But is a project management software robust and dynamic enough to carry the weight of a construction project? Before answering that question, it’s important to first have an understanding of what exactly construction management is?

What is Construction Project Management?

In brief, construction management is the process of managing construction projects. But when you’re talking about managing a construction project in comparison to other types of projects, the distinction is mostly that construction is mission-based. That means that the project’s organization ends with the end of the project build.

While generally project management is defined as managing resources over the life cycle of a project through various tools and methodologies to control scope, cost, time, quality, etc⁠—when working in the construction industry your outlook must be broader. Construction management usually includes a wider variety of constraints to consider that are specific to the design and build of construction projects. Construction project management can interact with a variety of different disciplines in the lifetime of a project as well, from architecture to engineering to public works to city planning.

Construction Sectors

There are a variety of different types of construction projects, depending on the different construction sectors. There are two sectors in construction: residential and commercial. Depending on the sector, there can be up to four different types of projects:

Residential home building and renovation
Heavy industrial construction
Commercial and institutional construction
Engineering construction

That means there are a wide variety of types of construction projects that require construction management in order to be successful. Construction management might be required for a simple home to a large bridge, from engineering a dam build to an airport seismic retrofit project. Construction project managers, then, manage the beginning and end of a project build, often managing on-site to ensure the safe, successful construction.

There are several types of construction projects and each of them has different challenges. However, all of them need a project owner, construction project manager and a general contractor.

Construction Project Management Team

Project Owner

The project owner commissions the project and directly or indirectly finances it. In addition to this, the owner supervises the project from a high-level view and makes important decisions such as defining the bidding process, selecting the contractor and choosing the project delivery method.

Construction Project Manager

Construction project management is run by a construction project manager. This person is tasked with the planning, coordination, budgeting and supervision of the construction project.

Construction project manager responsible for the following tasks:

Estimate and negotiate project costs
Formulate budget
Manage the construction scheduling and work timetables
Manage work orders
Determine which project management methods and strategies are appropriate for the project
Communicate with the project owner and stakeholders, re. budget, progress, etc.
Lead or interface with job site workers, teams and other construction professions on technical and contract details
Work with building, construction and regulatory specialists

The construction project manager is usually a Project Management Professional (PMP) certified by the Project Management Institute (PMI). The Project Management Body of Knowledge explains the different roles and responsibilities of a project manager in depth.

Also, the Construction Management Association of America (CMAA) explains the responsibilities of a construction manager, which is basically a project manager that specializes in the construction industry.

General Contractor

A general contractor oversees the daily operations of the job site and provides the equipment, materials and labor required for the execution phase of the construction project. General contractors usually hire subcontractors to execute specific tasks.
These are some of the main responsibilities of a general contractor:

Supervising the work of subcontractors
Setting up job site safety protocols
Applying for building permits and licenses
Disposing construction waste
Managing personnel on the construction site
Communicating with the project owner and construction project manager

A general contractor is selected after the project owner reviews bids from multiple general contractors and chooses the bid that better adjusts to the project needs. Let’s see how this bidding process works.

Construction Management Bidding Process

Most construction projects follow the design-bid-build model. First the project owner gets the design from architects or engineers. Once the project owner has blueprints and a material take off (MTO) for the construction project, the next step is to select the general contractor through the bidding process.

Then, general contractors present their bids, which include details like the statement of work, payment terms and how much it will cost.

Project owners usually issue two types of bids:

Open bid: These bids are publicly advertised and are used on public projects. Any general contractor can submit a bid.
Closed bid: The project owner selects a group of contractors and only receives bids from them for the construction project.

Once project owners receive the general contractors’ bids, they choose the best by any of these selection methods:

Low-bid selection: Consists in selecting the contractor with the lowest price bid.
Best-value selection: This selection method evaluates both the contractors’ qualifications and the price to choose the contractor with the best price-quality relationship. The project owner also closely examines the request for proposal (RFP) submitted by contractors to make a decision.
Qualifications-based selection: This selection method focuses on the contractors’ qualifications. To do this, project owners analyze each contractor’s request for qualifications (RFQ) to decide which is the most qualified contractor for the project.

Once a contractor is chosen, a payment agreement contract must be signed. Let’s review the most commonly used contract types.

Types of Construction Management Contracts

These construction contracts are a legal agreement between the project owner who needs to outsource job site work and the general contractor who will get it done. Their purpose is to clarify things like the project scope and payment terms so that everybody is on the same page. Some projects may involve a contract administrator, superintendent or a field engineer, which act as assistants to facilitate the process.

Lump Sum Contract: A lump sum contract or fixed price contract, defines a total price for the completion of the project.
Cost Plus Contract: Cost plus fee contracts are made of two parts: a fixed fee that’s agreed upon by the project owner and the contractor, plus additional costs that are added as the project progresses.
Guaranteed maximum price: It’s the same as a cost plus contract, but a maximum price is defined.
Time and Materials Contract: This type of contract is used when there’s uncertainty about the project scope. The general contractor charges an hourly rate for labor and materials.
Unit Pricing Contract: Used when costs can’t be determined ahead of time, it sets unit prices for materials.

In addition to the contract type, the owner must decide which delivery method works best for the project.

Construction Project Delivery Methods

The purpose of these construction delivery models is to define how the project owner, the general contractor and the licensed designer (architect or engineer) will interact throughout the project.

Design-bid-build: The design-bid-build method consists in choosing a general contractor after the design phase is completed.
Design-build: In the design-build method, the design and build phases are executed by the same party known as the design-builder.
CM at risk: The CM at risk model empowers the construction manager, giving him more functions than he would normally have. In this project delivery method, the construction manager acts in two ways. On one hand he is a consultant to the project owner during the design and development phases, and on the other hand, he monitors the contractor during the construction phase to control costs and guarantee that the project is delivered within the guaranteed maximum price.

Once the project owner has the blueprints, material take offs, a construction project manager and a general contractor, the project can begin.

Construction Project Management Processes

Construction project management requires a broad variety of skills, along with the ability to interface with a diverse range of agencies and people in order to lead the project from concept to build. It’s important that construction project managers follow the principles of project management during every phase of the project life cycle.

Project Initiation

You can’t start a project unless you know you’ll be able to finish it. First comes the due diligence to determine if the project is even feasible. How do you figure this out? You want to go through a feasibility study or what is often called a business case, in which you look at the goals, cost estimates and timeline to see if you have resources to reach a successful project end within those constraints. You also want to define the reasoning behind the project and make sure it’s sound. If so, then you create your project charter to help initiate the project. You’ll also identify potential issues and risks in this phase.

Project Planning

You have approval, now how are you going to achieve success? Outline the tasks within the timeline, noting project milestones, and the resources needed to do those tasks within the budget allotted. Be transparent in your project plan, so everyone is on the same page and understands what needs to be done over the life cycle of the project. That includes detailing the cost, scope, duration, quality and communications used in the project. This is also when you’ll be able to conceptualize the best project team for the project and begin the process of assembling them.
The planning phase is probably the most important project management phase because you’ll create the documents that will guide the project execution. Here are some of them:

Work breakdown structure
Risk management plan
Project schedule
Scope management plan
Cost management plan and project budget

Once you have a construction plan that includes all the information you need to manage costs, scope, risks, time and other aspects of your project, it’s time to execute.

Project Execution

Now you’re executing the project, taking the project plan and implementing it, along with all the changes and issues that can arise during such a process. Whatever deliverables you promised must come through in the timeframe you noted. Now, as a construction project manager, you must deal with the project owner, stakeholders and customers and teams. The latter have tasks that must be completed, which means workload management and resource allocation. You’ll be setting up meetings and reporting frequently throughout this stage. This is where your project management tool will really be tested, but more on that later.

Project Monitoring and Control

You can’t know the progress of your project if you don’t have a way to monitor it. You’ll be doing this during the previous stages of the project, but it’s important enough to demand its own separate stage in your management. You’ll want to have a way to note the progress, which is why you need to set up key performance indicators for cost control, time tracking and quality assurance. If you can stay on top of these figures, it’s less likely you’ll manage a failing project. Therefore, stay flexible and communicative throughout so you can adapt quickly to change when it occurs, and it always occurs.

The 4 Stages of Construction Project Management

When you’re managing a construction job there are certain objectives you should consider. You reach them in stages. Just like in any project, you accomplish it by breaking it down. The following are four steps you can take to organize a successful construction project management project.

Design

There are four parts to designing a construction project. It’s the responsibility of the project manager to make sure your design meets with building codes and other regulations.

The concept. What are the needs, goals and objectives of the project? You’ll be making decisions based on the size of the project, the site allocated for the build and the actual design of what you’re building. This is comprised of a list for each room or space under consideration, including all critical data.
The schematic design. The schematic design is a sketch that identifies all the various parts, materials, sizes, colors, textures, etc. It includes the floorplan, elevations, etc., even a site plan.
Develop the design. This requires research. What are the materials to use? What equipment will be needed? How much are the materials? What is the material take off? You’ll be refining the original drawings from the previous stage now to reflect these decisions. Knowing local building codes and adhering to them will be important at this stage.
Get the contract documents together. These are the final blueprints and construction specs. These will be used by outside contractors to bid on the job.

Preconstruction

Once the general contractor bids are accepted, but before ground is broken, you’ll have these three steps to work on.

Assign a project manager. Do this if it hasn’t already been determined. Sometimes a project manager is on board early and participates in the first stages of a project, while other times they aren’t hired until the design is complete.
Determine the rest of the personnel. Find a contract administrator: this is the person who helps the project manager. A superintendent is needed now, as well, who keeps everything on schedule in terms of the materials, deliveries and equipment. They’re also on site to deal with construction activities. Finally, you want to have a field engineer, which is more an entry-level position to deal with paperwork.
Investigate the job site. Check to see if anything needed. The job site must be ready for the construction, which might mean dealing with environmental issues, such as the suitability of the soil for construction.

Procurement

You have people and you’ve planned for the construction and materials necessary to complete it. Now you must purchase those materials and equipment. This might be the responsibility of the general contractor or subcontractors, depending on the organization of the business doing the construction.

This is the stage you’ll be working with purchase orders, which are used as an agreement between the buyer and the seller.

Construction

Finally, you’re ready for the build! But first you have a preconstruction meeting to deal with work hours, the storage of materials, quality control and site access. Then get everyone on the construction site and set up.

You’ll need to create a schedule of payment and a process to deliver them. This information needs to be transparent, not only to meet financial obligations, but to maintain a happy and productive workforce and environment. Make sure your work orders are detailed enough to avoid misunderstandings between you and your contractors.

The last part of the project is after the construction is complete and the occupants move into or take ownership of the site. You must make sure all their requirements have been met, and usually provide a warranty period to make that arrangement official and binding.

What is Construction Project Management Software?

Construction project management software organizes the planning, scheduling, building, resources and reporting associated with construction projects. It streamlines the process and improves productivity—all while keeping to a tight schedule and budget.