Beginner’s Guide to Construction Project Management

Beginner’s Guide to Construction Project Management

A Guide to Project Management for Construction

Construction Project Management includes the responsibilities of a traditional project manager plus the skills and expertise of the construction industry in order to produce a safe, practical and economically feasible project. Management of a Construction Project is a very complex and challenging task because construction projects are quite unpredictable due to the changing dynamics of the project.

Therefore, it is of utmost importance that the Construction Project Manager (CPM) possesses strong communication skills, organizing skills, problem-solving skills and knowledge of the construction process. He should also have appropriate knowledge about budgeting, scheduling, resolving conflicts and handling legal issues.

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The Role of a Construction Project Manager:-

A Construction Project Manager (CPM) ensures the project is tracking along the plan. The construction project plan is created by thinking of innovative design concepts which will help to reduce cost and improve the aesthetics and functionality of the constructed facility. Also, these innovative design concepts need to be checked for their technological and economic viability. The CPM has to finish the project on time and on budget and ensure that his team completes it according to building codes, plans and specs decided by the client.

The role of a Construction Project Manager includes the following seven categories:-

Project planning:-  Defining the project goals and its scope, budget, schedule and timelines.

Project management:- Overseeing all aspects of the project which includes quality management, material management and cost management.

Cost management:-  Ensuring efficient use of resources such as labor, materials and equipments.

Time management:- Implement project tasks as per the plan and schedule.

Quality management:- Working in conjunction with project engineers (quality controllers) to check the quality of work done on the site.

Contract administration:- Setting performance requirements and selecting project participants.

Safety management:- Identifying risks and reducing accidents on the site to improve productivity and project ROI.

How to obtain a Construction Management Project:-

The owner of a construction project, shares project information with a large group of contractors or sub-contractors to solicit bids. Then the selected contractor estimates the cost and fee based on the project owner’s requirements of the construction facility. This amount has to be paid by the project owner to the contractor in order to complete the project.

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The project owner can choose between closed bids and open bids. Once he receives bids for the project, he can select the contractor through low-bid selection, qualifications-based selection or best-value selection method.

Once the project owner chooses a contractor, there are four different kinds of payment contracts they can agree upon:

  • Lump sum:- The project owner and contractor agree on the overall cost of the project and the owner is required to pay that amount irrespecive whether the project succeeds or fails or if it exceeds the initial estimate.
  • Cost-plus-fee:– The project owner has to pay the total cost along with a fixed percentage of the total cost as contractor fee.
  • Guaranteed maximum price:– The guaranteed maximum price contract is the same as the cost-plus-fee, except that the price is pre-determined so that the total payment does not exceed set limit.
  • Unit price:- This contract is chosen when both parties are unable to determine the cost ahead of time. The contractor calculates specific unit price to estimate overall cost.

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