The project economy is often addressed as an emerging approach to boosting innovation and productivity, but it’s not as new as many claim. Described by the Project Management Institute (PMI) as a “fundamental paradigm shift,” this approach has displaced the conventional operations mindset in fields such as software development, but other fields have always been structured around projects.
Case in point: construction management. This sector is inherently project-based as each build involves clear goals, scope of work, and budgetary constraints, and each leads to easily identifiable results upon completion. Without structuring this field around projects, it could be difficult to coordinate talent, equipment, and materials.
Reflecting the prioritization of projects, a number of construction companies, real estate developers, and even government agencies hire construction project managers. These highly skilled professionals bring a wealth of domain expertise to the table. They thoroughly understand the complexities of the construction industry but also recognize that proper planning and coordination can mitigate these concerns. Keep reading for a deep dive into this role and its expanding influence within the construction industry.
Understanding the Role of a Construction Project Manager
Construction project managers tackle the big picture of construction projects. This means working with stakeholders to develop key objectives, along with building plans that enable them and their teams to achieve those objectives.
These skilled professionals handle many moving parts, including everything from budgetary concerns to resource allocation and even quality control. Their efforts bring structure and accountability to construction projects, thereby increasing the likelihood that these projects will be completed on time, under budget, and within the defined scope.
Key Responsibilities and Skills Required
Because new projects, opportunities, and challenges are always emerging, no two days look quite alike for the modern construction project manager. Differences also exist between employers. Some project managers are required to dedicate more attention to regulatory compliance, while others place a greater focus on talent management. Many project managers handle multiple projects simultaneously, but most roles will involve these essentials:
- Thorough understanding of construction processes and best practices and the ability to align these with project management techniques and methodologies.
- Knowledge of building codes, safety requirements, zoning laws, and other regulations at the state and federal level.
- Proficiency with construction management software, Building Information Modeling (BIM), and other technological solutions.
- Soft skills that relate to leadership, such as communication, emotional intelligence, collaboration, and problem-solving.
Importance of Project Managers in Construction
Handling the big picture of construction management, project managers are visionaries who shape every aspect of the project lifecycle. Operations platform SafetyCulture reveals that project managers drive the completion of “construction projects efficiently and in line with the owner’s goals by managing its cost, scope, and schedule.”
In this unique environment, the project manager’s ultimate goal is to lead successful construction projects by providing and communicating a clear vision and offering the motivation and accountability needed to achieve it.
Through careful coordination, strategic delegation, and strong risk management, project managers can deliver impressive outcomes that exceed the high expectations of clients and other stakeholders.
The Path to Becoming a Construction Project Manager
Construction project management calls for a unique mix of skills and domain knowledge that can be gained through a strategic blend of business-oriented coursework and industry experience. Often, this involves pursuing a targeted construction degree, such as the Bachelor of Science in Construction Management.
Essential Education and Certifications
There are a myriad of avenues to success in construction project management. That said, many ambitious professionals find that they best path to comprehensive skill development involves a targeted construction management degree.
Through classes on risk management, procurement, and construction law, aspiring project managers gain considerable exposure to the field’s most important concepts, while also getting the chance to build practical skills through projects and other immersive experiences.
A bachelor’s degree often represents the minimum barrier to entry, but opportunities such as certifications also allow construction project managers to hone their skill set.
After obtaining their bachelor’s degree and gaining experience in the field, some ambitious construction project managers may also seek graduate-level degrees, which can unlock many higher-level roles. Getting admitted to these competitive programs may be easier after completing a relevant four-year degree.
Gaining Practical Experience in Construction Management
Because domain knowledge plays such an important role in construction project management, aspiring project managers are strongly recommended to gain industry experience. There are several ways to accomplish this. For example, some begin by working as estimators, technicians, or even as project coordinators.
These roles help future project managers gain a nuanced understanding of the construction industry. They witness key challenges that can emerge due to poor management, along with cutting-edge opportunities to improve construction quality, reduce operational expenses, or pursue essential goals such as accessibility or sustainability.
Tools and Resources for Aspiring Construction Project Managers
Today’s construction project managers leverage a wealth of technological tools and resources, which provide valuable assistance with everything from scheduling to budgetary concerns and even data analytics. Some of these solutions are designed to automate mundane, time-consuming tasks, thereby improving efficiency and freeing up construction project managers to focus on more dynamic tasks.
Introduction to Project Management Software
Project management software streamlines time-consuming tasks while boosting coordination and collaboration among team members and stakeholders. Construction project managers should keep up-to-date with emerging software solutions and should be prepared to leverage these popular solutions:
- Contractor Foreman. Offering affordable solutions for small to mid-sized general contractors, Contractor Foreman provides a range of features related to work orders, daily logs, punch lists, and more.
- Primavera P6. Meant for large-scale projects, this popular solution from Oracle provides elite scheduling and analytics tools. This robust platform aims to eliminate bottlenecks and boost efficiency.
- Procore. Arguably the most user-friendly construction management solution, Procore serves as a powerful project hub, offering bid management and real-time labor costing.
Essential Books and Online Resources
A wealth of online resources provide insider information and valuable perspectives on the construction industry. While these should not be used as training in lieu of a targeted degree program, they can support learning efforts while also encouraging aspiring construction project managers to delve into niche topics they find compelling.
Helpful are influencers are also on YouTube or TikTok. Matt Risinger, for instance, offers cutting-edge insight into construction technology, along with advice on pre-construction planning and other topics relevant to construction project managers. Similarly, Jason Schroeder is committed to elevating the construction industry and its most promising leaders.
Construction-centric books are worth reading, as are top titles from the project management field. Essentials include:
- The Lean Builder: A Builder’s Guide to Applying Lean Tools in the Field
- Project Management for the Unofficial Project Manager
- Built to Fail: Why Construction Projects Take So Long, Cost Too Much, And How to Fix It
Building Your Construction Project Management Team
Construction projects are only as strong as their teams. Made up of domain experts who bring niche skills to the forefront, these teams must be highly collaborative and driven by a shared vision.
Roles and Responsibilities Within the Team
Construction is collaborative by nature and, without a strong team, communication and productivity can quickly suffer as can quality. This then prompts poor adherence to building codes and a whole host of other issues. Delegation is a must, as this ensures that team members’ skills align with their designated roles and responsibilities. Key team members may include:
- Construction manager. Not to be confused with the project manager, the construction managers focuses on the day-to-day aspects of coordinating construction sites. These leaders ensure that all specifications are followed and often serve as a vital point of contact between project managers, stakeholders, and the construction workforce.
- Site supervisor. Traditionally referred to as the foreman, the site supervisor oversees construction workers and subcontractors while enforcing quality standards. Site logistics play heavily into this role, but site supervisors may also be responsible for enforcing safety protocols.
- Field engineer. Also known as the site clerk, this entry-level employee functions a lot like an assistant to the foreman. This role often centers around document organization, quality checks, and progress monitoring.
Construction teams may also include engineers, architects, and experts in plumbing, electricity, or carpentry. Several projects involve trade foremen, who coordinate activities among various trade workers.
Team members should have complementary skills and, just as importantly, should be a strong cultural fit, holding the same values and priorities as the organization in question.
Effective Communication and Leadership Strategies
Construction management expert Jason Schroeder explains that while procurement, pre-construction, and closeout are all crucial, the bread and butter of construction project management involves leading teams. He believes that the project managers ultimately acts as the “orchestrator of the entire project,” adding that the ideal project manager will function as a “builder of people who build things.”
Successful leadership involves high-level coaching and mentoring, along with clear communication. This means regularly updating all team members and subcontractors on project developments. Strong channels of communication should be established, with project managers leveraging software and mobile solutions when possible.
Beginner’s Guide to Project Management Processes
In the construction industry, project management processes largely echo those seen in fields such as information technology. The project management cycle outlined by PMI includes initiation, planning, execution, monitoring, and project close. Below, we explain these essentials as they relate to the construction industry.
Step 1: Project Initiation and Planning
The initial phase of the project management lifecycle is instrumental. This is when the project’s core objectives are clarified, along with the project scope. That ultimately provides structure for all activities to follow while also limiting the potential for scope creep. This phase should encompass risk identification, which we will discuss in greater detail later.
Step 2: Project Execution
The actual work of constructing a building occurs during the execution phase. If initiation and planning processes are carried out correctly, execution should be seamless.
During this phase, the construction site should be prepared, with infrastructure set up and site access confirmed. Strategic labor management and equipment procurement should ensure that the right tools and talent are available to get the job done.
Project execution may involve coordination between various contractors or professionals, with the goal of promoting smooth workflows. Along the way, meticulous documentation is essential, including daily logs and change orders.
Step 3: Monitoring and Controlling the Project
Planned schedules and actual progress do not always align, especially as the complex realities of running a construction site may prompt unexpected delays. However, through progress tracking, construction project managers can verify whether deadlines are met, and if they’re not, why such delays occur and how these can be resolved or avoided in the first place.
This phase also involves cost control measures, including careful monitoring of the project budget. Costs involving labor and materials should be regularly reviewed, with financial reports outlining expenditures and anticipated costs to keep stakeholders informed every step of the way.
Step 4: Closing the Project
As construction activities begin to wrap, the final phase of the project promises closure. This should begin with final inspections, which confirm adherence to critical codes and specifications. Minor defects represented in a punch list may require correction before the project can be finalized. Other essentials include site cleanup and processing payments.
The final steps involve client walkthroughs and formal handover. This allows clients to review completed projects and gain access to important documentation or other resources. However, if concerns emerge following finalizations, additional review or support can be provided during the defects liability period.
Common Types of Construction Projects
In project management, a project is defined as a series of tasks that must be strategically completed to arrive at a desired and clearly defined outcome. With construction project management, the outcome is often easy to identify, which is a newly built or renovated structure that aligns with stakeholder priorities. These projects can look dramatically different based on the type of building and its identified purpose or the industry it is meant to support, but most projects will fall into one of the main categories highlighted below.
- Residential. This category centers around the paramount structures in which people live. While some construction projects may involve single-family homes, many residential projects involve condominiums or apartment buildings.
- Commercial. From brick-and-mortar retail locations to offices and even entertainment facilities, a wide range of structures fall under the commercial category. These must be closely aligned with the needs of their respective industries or businesses.
- Industrial. Primarily dedicated to manufacturing and warehousing, industrial projects are typically vast in scope but, in general, aim to provide the complex infrastructure needed to support industrial operations.
Understanding the Unique Challenges of Each Type
Each type of construction project presents distinct challenges that must be identified early on so that specific steps can be taken to overcome these issues. Examples include:
- Residential. While cost overruns can occur in any type of construction, these are especially problematic for residential builds, which often involve limited budgets. Zoning concerns may also emerge, along with building code complications.
- Commercial. Challenges can differ greatly from one commercial project to the next. There is no one-size-fits-all approach for this category, and transparency is vital when dealing with nuanced project objectives and scope.
- Industrial. Extensive infrastructure and complex engineering can be expected when tackling large-scale industrial projects. Larger quantities of materials may be required, leading to potential procurement or supply chain challenges. Site access can also be a major point of concern, as team members need to reach the site in question. Ideally, disruption to local communities will remain minimal.
Navigating Construction Management Contracts
Construction management contracts provide much-needed accountability and are also necessary from a compliance and risk management standpoint. Project managers may be heavily involved in contract negotiation, which can shape every aspect of the project in question. The previously mentioned Jason Schroeder highlights the need to “reach fair terms in a win-win environment in a powerful and effective way.”
Overview of Contract Types and Their Uses
Many types of contracts influence construction project management. These may determine everything from budgeting strategies to project timelines. Common contracts required in construction project management include:
- Time and materials (T&M). Under this setup, payment is determined based on the amount of time spent carrying out construction tasks and the materials required to get the job done.
- Guaranteed maximum price (GMP). Often reserved for large or complex projects, GMP sets a fixed maximum, thereby delivering greater peace of mind for the client. This means that the contractor incurs the risk of overruns.
- Unit price. Involving compensation for specific types or quantities of work, unit price contracts work best for a well-defined, easy-to-understand project scope.
Tips for Successful Contract Negotiation
The best contract negotiation strategies allow construction project managers and stakeholders to arrive at mutually beneficial terms. This may call for some element of compromise, but by understanding the project scope and risks, construction project managers can secure favorable contracts. Essential elements of contract negotiation include:
- Setting limits
- Identifying acceptable trade-offs
- Addressing changes proactively
Best Practices for Budgeting and Cost Management
Strict financial constraints accompany most construction projects, and project managers are responsible for allocating budgets and resources according to client requirements. This can be challenging given the inherent uncertainty of construction projects, but these best practices may help:
Estimating Project Costs Accurately
A clear scope statement provides the basis for accurate cost estimations. This can be followed by a work breakdown structure (WBS) to organize the various tasks required, and, eventually, a cost breakdown structure (CBS) or should-cost analysis to reveal the likely expenses that the project may incur. Categories covered in the CBS include:
- Labor
- Materials (both tangible and intangible)
- Equipment
- Overhead (such as utilities)
Managing Project Finances and Avoiding Overruns
Overruns occur when actual project costs exceed original estimates. These may involve unanticipated increases in labor costs or the cost of materials. Project managers are best equipped to avoid overruns when they fully understand project requirements and scope, as well as when they develop estimates accordingly. Beyond this, project management software, progress monitoring, and resource re-allocation can limit the potential for overruns.
Risk Management in Construction Projects
Every construction project presents unique risks that can stand in the way of meeting identified objectives. These could involve everything from supply chain challenges to illnesses among team members or even natural disasters. Risks cannot always be avoided, but, if identified and planned for, their negative impact can be minimized.
Identifying Potential Risks Early
Construction project risks must be identified early on, as it is nearly impossible to address or mitigate risks that remain unknown. Ideally, this will occur during the initial planning phase. Potential risks can be identified through historical analysis and by seeking diverse perspectives from stakeholders.
Developing Effective Risk Mitigation Strategies
Unfortunately, not all risks can be entirely avoided. However, if worst-case scenarios ultimately play out, mitigation strategies can limit the damage. For instance, diversifying suppliers can limit supply chain problems, while stockpiling critical materials can provide a buffer in the event of an unexpected delay. Subcontracting or even cross-training can prove invaluable when labor shortages pose problems.
Prepare for a Bright Future in Construction Project Management
Are you ready to take a step up in the construction industry? With the right training, you can drive results as a construction project manager. Give yourself an edge in this growing field as you learn critical skills with Florida Technical College’s Bachelor of Science in Construction Management. Spanning up to 39 months, this program provides powerful preparation for ambitious students who hope to help shape the construction management industry. Reach out today to learn more.
These examples are intended to serve only as a general guide of possible employment opportunities. There are many factors that determine the job an individual may obtain and Florida Technical College cannot guarantee its graduates any particular job. Some positions may require license or other certifications. We encourage you to research the requirements for the particular position you desire.
Sources
https://www.pmi.org/learning/library/forging-future-focused-culture-11908
https://safetyculture.com/topics/construction-management/
https://www.pmi.org/about/what-is-project-management
https://www.pmi.org/certifications/construction
www.youtube.com/@buildshow/videos
https://www.youtube.com/watch?v=07gr7vk9EV4
https://www.reddit.com/r/ConstructionManagers/?rdt=65421
https://www.youtube.com/@jasonwilliamschroeder
https://www.youtube.com/watch?v=swD_oRsnPR8
https://www.youtube.com/watch?v=PDAmTebSIv8
https://www.oracle.com/construction-engineering/primavera-p6/
https://contractorforeman.com/project-management/
www.procore.com/platform
