Construction project

management
Construction Management
Technically, the Project Management Institute (PMI) defines project management as “the art of
directing and coordinating human and material resources throughout the life of a project by using
modern management techniques to achieve predetermined objectives of scope, cost, time,
quality, and participating objectives.” For the definition of construction project management, it’s
basically PMI’s definition in the construction context.

It encompasses all the planning, coordination, processes and controls over the myriad of tasks
involved in a construction project. And it can be any type of construction project — residential,
commercial, institutional, industrial, civil, agricultural, or environmental.

Managing a construction project is a complicated role dealing with complex tasks that get
modified from project to project. A construction project manager has to be skilled in
communication and knowledgeable in building processes and problem-solving.

The basics
Construction project management is not one thing — a project manager in construction has to be
knowledgeable in finance, mediation, law, and other disciplines.

Construction management starts with a project owner sharing project information to contractors
and subcontractors in order to solicit bids. Contractors and subcontractors give project owners
their cost estimates for the project to be completed. This may be open (inviting all contractors) or
closed (inviting only a select number of contractors).

Once the project owner receives all the bids, a contractor is then selected based on the lowest
bid, best qualifications, or of best value to the company. After that, payment contracts can then
be agreed upon and could be lump sum (the most common contract), cost-plus-fee, guaranteed
maximum price, or unit price.

The bidding process remains the same regardless of the type of a construction project. The
business models, though, are of two forms — it’s either design, bid, build where the project
owner chooses a contractor after the design phase or design-build where both design and
construction phases are done by one contractor.
The process
The construction phase begins once the bidding process has been completed. There are
differences in the phases of a construction project when compared to traditional project
management, however, the same principles are followed. The Project Management Institute has
developed five phases of managing a project that all construction project managers should be
aware of.

1. Initiation
At the start of any project, a business case must be created and evaluated to ascertain the
feasibility of the project. Stakeholders then perform feasibility testing accordingly. Once
feasibility is determined and all stakeholders and parties agree to advance the project, a project
charter or project initiation document (PID) is then created, which includes the business case and
the business needs.

2. Planning
Following initiation, the project team creates a roadmap — the project management plan (PMP),
a formal document that outlines the project’s execution and control. The PMP also archives
baselines for scope, cost, and schedule. Aside from the PMP, the planning phase also includes
the creation of the following documents:

 Scope statement and documentation, which establishes the business need, benefits,
objectives, deliverables, and key milestones.
 Work breakdown structure, which visually represents the scope breakdown into
manageable chunks.
 Communication plan, which defines communication roles, tools and methods in
achieving communication goals and objectives. As there are different teams with
different communication styles involved, the communication plan outlines a basic
framework to put everyone on the same and avoid disagreements or conflicts.
 Risk management plan, which identifies possible risks like nonviable time and cost
estimates, budget cuts, regulation changes, etc.

3. Execution
All work begins in this phase. After the kickoff, the project team assigns tasks and activities to
befit stakeholders — allocate resources, execute plans, structure tracking systems, update the
project schedule, and refine the project plan.

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4. Performance and monitoring
As the execution phase starts, so does the monitoring phase. As the project advances, building
progress and performance are measured to see to it that everything is going according to the
project management plan.

5. Closure
The last phase is project completion. A post-mortem meeting is usually carried out to assess what
went well and what didn’t. The team then generates a punch list of unfinished tasks, calculates
the final budget, and creates a final project report.

The construction project

management checklist
For beginners in construction project management, here is a basic checklist for most reasonable
size construction projects:

Scope
 Does the brief cover the purpose of the project, the scope of work, and does it identify
any relevant documents driving the project (e.g. master plan, education brief)?
 Did all relevant stakeholders provide appropriate input into the development of the brief?
 Did the client and stakeholders sign off on the project brief?
 Are all works needed to complete the project listed with a clear understanding of who
undertakes tasks and jobs, including all items to be obtained by the client?
 Are all project requirements (brief, budget, timeframes, project team standards) ready for
collection?
 Are constraints and conditions that will impact project delivery identified?

Procurement
 What project procurement method (e.g. lump sum, cost-plus-fee, guaranteed maximum
price, or unit price) was selected?
 Has the selection of architectural, engineering, and other required consultants been
managed?
 Are all required disciplines and specialist advisers included in the project team?
 Are all appropriate contracts executed between clients and consultants?
 Are all contract progress payments to consultants being processed?
 Did the client and stakeholders provide requirements and timing of materials and
services, and are they built into the project programs?
  Are feasibility study reports, sketch drawings, and working drawings completed,
coordinated, checked, and signed off at appropriate times?
 Are tender calls, tender recommendations and contractor engagement processes managed
properly?
 Are all contract documents signed?
 Are site inspection requirements from consultants met and are appropriate instructions
given to contractors following site meetings and inspections?
 Are variations and contract instructions made on a timely basis?
 Are project completion and hand-over process managed well?
 Are dispute resolutions, contract defaults, and liquidations supervised properly?

Cost
 Are cost estimates and project budget reviewed and managed accordingly?
 Have cost issues been flagged early and discussed with all stakeholders?
 Are variations and extension of time expenditure checked?
 Are contract payments to contractors processed on time?
 Are strategies to maintain the project budget when cost pressure arise intact?

Quality
 Are client quality standards well articulated and understood by the consultants?
 Are the quality standards required by the consultants and contractors being followed?

Risk
 Are all project risks identified and are there preparation plans to address them?

Time
 Has the project team established a project program and are key strategic activities
identified?
 Is the project program monitored and updated per required and are timely provisions of
materials and services from other parties flagged?
 When delays are evident, are strategies to maintain the project program in place?

Communication
 Are there consultative mechanisms (project meetings and reporting processes) all
throughout the construction process?
 Have approval mechanisms for various sign off requirements with appropriate authority
been established and well managed?
 Are government and statutory approvals checked, archived, and managed properly?
 Are meeting minutes reported to the appropriate stakeholders?
  Are regular progress reports on project issues (costs relative to budget, progress relative
to project plan) prepared periodically?
 Did all team members understand their roles and responsibilities and ensure their ongoing
commitments?

What are the main stages of

construction projects?
 The concept of a project
 Design
 Pre-construction stage
 Procurement stage
 Construction stage
 Post-construction stage

For every stage of a construction project, from the simplest to the most
complex, there are certain steps and processes that need to be followed to
ensure a successful outcome.

Projects in construction may vary based on their size, the number of

stakeholders involved, budget and delivery date. Regardless of the case,
though, a construction project is always a long and demanding process.

The good news is that with the continuous progress of digital solutions, the
management of the different project phases can now be done much easier
and with higher precision. On top of that, the collection of valuable data from
the field can play a decisive role in improving, and ideally, standardising the
construction process for future projects.

Explore LetsBuild today!

In a nutshell, here are the 6 stages of a construction project and what you
should know about them:

1. The conception of the project

Normally, the conception of the project starts with the client. This is where the
dream begins as well as the research for the right location and the
specifications/standards that should be followed.
Depending on the project, the conception stage might vary. It can take
anywhere from a few days to a few months or more, depending on how
imminent is the need for the completion of the project.

It goes without saying that construction workers usually don’t have much input
during this stage, as the ball is still in the hands of the project owner.

2. Design
Once the project is closer to fruition, it is time to sit down and talk design. This
is still a preliminary stage, which means that nothing is guaranteed at this
point. Nevertheless, design is the stage where usually the bidding process
begins.

The team that is in charge of the design, led by an architect or an engineer,

will need to make sure that each of the state regulations and codes is met
while respecting the vision of the project owner as well as ensuring that the
newly built structure will be usable.

There are normally four different steps within the design stage and they
include programming and feasibility, schematic design, design development,
and contract documents.

During the programming and feasibility step, each of the objectives and goals
of the project has to be outlined. Numerous decisions are made at this stage,
including how large the building will be, how space will be used, and how
many rooms will be needed.

The schematic design is a sketch that will show the space as well as
materials, colours, and even textures. That sketch will be used during the
design development to research the equipment needed, along with the cost
for them and the materials being used.

Once the contract documents are drawn up, everything is close to being
finalised, because they contain the final drawings and specifications. These
documents are used in the construction field by those placing bids to work on
the project.

3. The pre-construction stage

The next stage of a construction project begins when the bidding is completed
and the contractor has been chosen to do the work. As soon as the contractor
is chosen, the project team is put together.

Typically, a project team has the task to prepare the construction site before
the work begins. As a rule, it consists of the following specialties:

 Contract administrator
  Project manager
 Superintendent
 Field engineer
 Health and safety manager

In close collaboration with the contractor, the project team is responsible for
visiting the field in order to complete a site examination. The site examination
will allow the project team to detect or predict any environmental challenges
that might emerge during the building process. Soil testing is also an integral
part of this step.

When all information is collected, all plans and findings should be reviewed by
the city authorities. This is usually a long procedure, as all concerns and
opinions should be heard and addressed.

4. The procurement stage

Now it’s time for the project team to order and obtain materials, equipment,
and workforce. This stage of the project can be more or less complex and
challenging depending on how big the project is, the available resources and
the agreed start date.
Many of the big construction companies have their own procurement
departments. In such cases, it is common that the construction company will
simultaneously order labourers, equipment and materials for a number of
projects. This process might vary a lot in smaller projects.

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All this work is usually performed by the general contractor, however, there
are times when subcontractors will be in charge of certain parts. The
subcontractors may be responsible for hiring their own workers or obtaining
their own materials so that they know that they have exactly what they need to
complete their portion of the job.

5. The construction stage

Before the construction work begins, a pre-construction meeting is done to
ensure that everyone is on the same page when the construction starts. This
meeting normally includes information about the following topics:

 how to access the job site

 the quality control of the project
 how and where to store all the materials
 the hours that everyone will be working

Each worker may be given their own schedule. It is also important to note that
the schedule of each project agent might vary depending on their role. This is
especially true for subcontractors who need certain parts of the job completed
before they can begin their portion. It easily becomes evident that bad
planning at this point can lead to serious delays and budget overruns.
Once the meeting is over and there are no lingering questions, the very first
step of the project can begin. The goal at this point is to have planned
everything so carefully that everything goes off without a hitch. Of course, that
rarely happens, as something always goes wrong during a construction
project.
To avoid pitfalls, while planning your construction project, you should use
some kind of digital solution.

Explore LetsBuild today!

6. The post-construction stage

Last but certainly not least, the post-construction stage. Now that all the work
on the job site has been completed, the project will soon come to a close.

Nonetheless, there are still a few steps that need to be done before the keys
to the building can be handed over.
In general, the final stage of the construction project is divided into three
critical steps:

a. New construction building commissioning

First things first, an inspection of the whole building needs to be done. If
everything is done correctly, these inspections are fairly simple to pass.

The reason is that other inspections should have already been completed
during the entire project. It is during those previous inspections that issues
should have been found and corrected.

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comprehensive guide
As soon as everything has been checked, it is time for the project team to
train the client in operating and maintaining the newly built structure. That is a
step of considerable importance as it will contribute to increasing the lifecycle
of the project.

b. Owner occupancy
Now that the training is completed, the owner can take over the building. This
is when the warranty period is on. In that way, the project owner can feel safe
that there is enough time to examine all the different systems, equipment, and
materials that have been installed.
There are three main types of warranty in construction:

 Express warranty: It is normally included in the contract.

 Implied warranty: It is imposed by law.
 Statutory warranty: It is introduced in a state’s regulations.

c. Closure
That is the last step in the long process of designing and completing a
construction project. The project team has to overall contractual agreements
and make sure that the project is free from any type of legal burden.

At this point, it is also a good practice to carry out a post-project review which
could help the different agents to detect any tasks that weren’t completed,
analyse why this happened and put together a list of insights for the future.

A post-project review can also be the foundation for the creation of an in-
depth project completion report.

Final word
At the end of the day, every stage of a construction project is a chain of tasks,
decisions, and numerous tools. Its complexity depends vastly on the size and
type of the project but there are always some core steps that can’t be skipped.

Impeccable communication between the different stakeholders and fact-based

decisions are two fundamental pillars in the effort of streamlining a
construction project and making sure that all phases will be developed and
completed within the agreed timeframe and budget.

If you want to dive into more detail regarding all the distinct aspects of the
construction management process, make sure to download our free ebook
on improving productivity on the construction site.