Management of construction projects: All you need to know

Every construction project begins with project management. To manage a construction project, a project manager must have a wide range of skills and competencies. Communicating effectively with all the teams and navigating the project are necessary. Project management is crucial to maintaining stability in construction projects that are constantly changing. We will cover the essential concepts and principles of a construction project for an interior fit-out company in London.

What is construction project management (CPM), and what does it mean?

The management of construction projects can be described as the supervision, direction, and regulation of the project's progress from its inception to its completion. Construction project management's ultimate goal is to satisfy the client's requirements for a viable project in terms of functionality and budget. Many construction projects include residential, commercial, and heavy civil.

Construction project management is closely linked to technical parameters such as budget and execution, but it also requires solid communication among all agents (stakeholders, contractors, and community).

Construction project managers: What is their role?

The job of a construction project manager involves planning, organizing, budgeting, and supervising the projects from start to finish. A construction project manager is responsible for the following:

• Create a budget and negotiate costs estimates
• Organize the work schedule
• Select the most efficient construction strategy and method
• Keep in touch with clients regarding budget-related or work-related matters
• Talk to workers and other professionals about technical details and contracts
• Pay attention to the construction workers on site
• Collaborate with construction and building specialists

Contractor: Role and duties

The construction manager selects the contractor as soon as the design has been completed. Sometimes, this may happen even while the project is still under development. Selection is made through an auction with several contractors. Three main methods are used to select contractors: Low-bid selection and Best-Value Selection. Qualification-based selection is also an option.

Contractors must be able to handle deadlines, budget issues, and public safety.

Management of construction projects: These are the primary functions

Construction management can be extended to many different parts. These are the most important.

1. Specify project goals and plans, including scheduling, budgeting, and deciding on achievement requirements.

2. Acquiring the required equipment and the workforce will increase the effectiveness of your resource resources.

3. Execute multiple operations by ensuring coordination and management of contracting and planning, estimating, design, and construction throughout the process.

4. Effective communication between agents is essential for solving many conflicts.

These are the main principles for construction project management

Construction project management can be a complex field. Anyone just starting in this field should be aware of some basic principles.

The project owner should reach out to contractors to request bids. Managers of construction who are interested in the project will then offer to bid to the owner. The proposal will contain details about how much money the owner of the project must offer to complete the project. There are two types:

1. Open bid:

Public projects are directly linked to open requests. It is an open bid auction, where any contractor can make their offer. Usually, an available bid is promoted.

2. Closed bid:

Private projects can only be won through closed bids. The project owner sends a bid invitation to a specified number of contractors.

After reviewing all bids, the owner will select the contractor using one of these three methods.

1. Low-bid selection:

The price is the most crucial consideration in this case. Construction management companies offer the lowest possible bids and are willing to finish the project. The owner of the project selects the lowest bid and accepts it.

2. The best value selection

Is based on both price and qualifications. The owner chooses the best bid in terms of both quality and price.

3. Qualified-based selection:

This is when qualifications are the sole criterion for selecting a construction management company. An owner may request qualifications (RFQ), which allows them to obtain more information about the contractor's experience and their project management skills.

Types of contracts

After the selection process, you must agree on the type of contract. There usually are four types of agreements:

1. Lump-sum:

This is the most common type of agreement. Both the owner and contractor agree on a fixed price for the entire project. Even if the project's final cost proves to be lower than agreed, the price will remain the same.

2. Unit price:

This method is used when there are objective problems deciding the final cost in advance. The project owner may offer materials at a specific unit price to reduce costs.

3. Cost plus fee:

This is the best type of contract for contractors.

4. Guaranteed Maximum Price:

This contract is the same as before. This contract has a maximum price that can't be exceeded.

Project management processes

Now it's time to bring the project to fruition. Regardless of its unique characteristics, every project has a typical life cycle. The structure can be broken down into four stages.

1. Initiation of a project

The first phase determines the objectives and feasibility of the project. This stage is crucial as it will decide whether the project is worth it. A feasibility study may be required. Based on the results, a plan or solution is recommended.

Once all the details are settled, a project initiating document (PID) is created. The project initiation document is the foundation for the construction plan. It is one of the most important artifacts in project administration.

2. Phase of planning

The team identifies all work that needs to be done during the project planning stage. It is an ongoing process that continues almost until the end of the project. During the planning phase, the main goal is to plan the time, costs, and resources required for the project. The team will then develop the strategy.

It is also called scope management. A work breakdown structure (WBS) is another critical document to prepare. It is a checklist that breaks down all work into smaller, more functional categories. (You can do this in our construction scheduling software).

Once the budget, schedule, and work are set, the project can be started. Risk management is the next important step in this process. The team must now examine all potential risks and develop solid solutions. A communication plan is also necessary, allowing for efficient information flow among project stakeholders.

3. Execution phase

The construction project management plan is used in the execution phase. This phase can be divided into two major processes: monitoring, controlling, and executing. The project team ensures that all tasks are completed. The project team monitors progress and makes adjustments as necessary.

A project manager spends most of his time monitoring the project and, depending on the information he receives, redirects the tasks to maintain control.

4. Closure phase

It is the final stage of a project. The project's final phase is where the manager evaluates what went well and identifies any possible failures. The team completes the project report, calculates the last budget, and provides information on any remaining tasks.

The report and analysis of potential failures for future projects will provide valuable feedback.

Project scheduling

A reliable scheduling system can reduce many risks associated with a construction project. Scheduling is designed to increase the efficiency of resource allocation and material allocation. It will prevent any delays and allow for better communication between all parties. A project manager can choose from a variety of scheduling methods:

1. Gantt Charts are:

Without a doubt, it is one of the most valuable tools a project team has at its disposal. Gantt charts can give you a view of the construction project and help you identify tasks that have been completed or are still being worked on.

2. Line of balance scheduling:

This is a beneficial technique for repeating tasks. It can be a great help in meeting deadlines and allocating resources efficiently.

3. The critical path method

Is a popular scheduling tool. It helps to distribute resources efficiently and accurately calculate timelines. A required path method can help you complete your construction project on time or earlier.

4. Q-Scheduling

Is a construction scheduling technique that has been growing in popularity. It allows project managers to place multiple, sometimes conflicting, tasks in the correct order.

Construction project budget management

The most critical parameter to consider when you begin a construction project is a budget. Although it can be challenging to estimate the cost, it is possible to make the project successful if you do it correctly. The following are the four main parameters that project managers should remember:

1. Analyse the project:

Clarifying the objectives and limitations of the project is the first step. It will help you to get a clearer picture of your goals and the people you need to accomplish them.

2. Estimating the budget:

It's a great time to solicit bids from interested contractors.

3. Cost monitoring:

It is crucial to monitor the project's costs as soon as it begins. It's essential to do this as quickly as possible, so you can detect potential misappropriation of resources before it's too late.

4. Accounting:

It is essential to have a competent accounting department. They will work with the project team to ensure that all financial agreements are in order.

The Legal Aspect of a Building Project

Many details go into a construction project. The legal parameters of a construction project are an essential aspect that every manager must consider. A competent construction project manager must be able to answer any legal questions or potential risks.

It ensures that the entire project is secure and built upon solid foundations. There are five areas to be aware of:

1. Parties:

This refers to all parties involved in the construction project (contractors and consultants, sub-contractors or purchasers, etc.).

2. Contracts:

Although there are some fixed contracts for construction projects, changes often need to be made. Legal advice is highly recommended.

3. Legislation and Regulation:

A robust legal team will ensure that all regulations and legislation are correctly followed.

4. Procurement:

This refers to purchasing all materials and services required for a construction project. The legal aspects of the entire project must be considered.

5. Insurance:

There are many dangers at a construction site. It is essential that a project manager was informed about and took care of all details regarding the insurance agreements.