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Construction Project Management Processes: Everything You Need to Know

Friday - 16/08/2019 16:44
Project management is the basis on which every construction project is founded. A construction project manager has to obtain a variety of skills and competences in order to navigate through the project and to establish a functional connection with the numerous teams.
Construction Project Management Processes: Everything You Need to Know
Construction projects have a continuous need for alterations and in that sense project management is key to the stability of the whole procedure. In this article, we will try to walk you through the vital concepts and principles around construction project management.
What does Construction Project Management (CPM) mean?
Construction project management could be defined as the direction, regulation, and supervision of a project from early development to completion. The ultimate goal of construction project management is the full satisfaction of the client’s demands for a viable project both in terms of functionality and budget. There is a wide range of construction project types, such as commercial, residential, industrial and heavy civil.
The main concept of construction project management is closely connected to technical parameters like budget and execution but it also requires solid communication between all the agents (stakeholders, contractors, community).
The Role of a Construction Project Manager
A construction project manager is responsible for planning, coordinating, budgeting and supervising projects from the beginning to the end. In short, a construction project manager has to take care of the following:
Put together the budget and negotiate cost estimates
Arrange the work timetables
Choose the most efficient construction method and strategies
Stay in touch with the clients for work or budget related issues
Discuss about technical and contract details with workers and other professional parties
Keep an eye on the personnel in construction onsite
Cooperate with building and construction specialists
Contractor: Role and Duties
The construction project manager chooses the contractor of the project as soon as the design is completed. In some cases, this can happen even when the project is still in development. The selection is based on an auction process with various contractors. There are three prevailing methods based on which a contractor is picked: low-bid selection, best-value selection and qualification-based selection.
Contractors should be able to deal with deadlines, budget issues, public safety, decision making, quality management, working drawings, human resources and mathematics.
Construction Project Management: The Primary Functions
Construction management is typically extended to a plethora of different functions. The most important of them could be summarized to the following:
1. Specification of the project goals and the plans including drawing of scope, scheduling, budgeting, deciding upon achievement requisites and choosing project participants.
2. Boost of the resource effectiveness through the acquisition of workforce and of the necessary equipment.
3. Conduction of numerous operations through legitimate coordination and management of contracting, planning, estimating, design, and construction during the whole procedure.
4. Efficient development of solid communication between the agents for resolving any conflicts that may arise.
Conduction of numerous

The Main Principles of Construction Project Management
It’s no secret that construction project management is a quite complicated field. However, there are some fundamental principles that anyone who just entering the field should keep in mind.
Everything starts with the project owner reaching out to contractors in order to ask for bids. The managers of construction that are interested in carrying out the project will, then, offer a bid to the owner. The bid will include details about the amount of money that the project owner has to offer for the project to be completed. There are two types of bids:
1. Open bid: Open bids are inextricably connected to public projects. It’s an auction where any contractor is welcome to make his offer. An open bid is normally openly promoted.
2. Closed bid: Private projects are based on closed bids. The project owner sends a bid invitation to a specific number of contractors.
After receiving all the bids for the particular project, the owner proceeds to the selection of the contractor through one of the following three methods:
1. Low-bid selection: In that case, the main focus of interest is the price. The construction management companies present the lowest bids they are open to complete the project for. The project owner selects the lowest offer and proceeds with it.
2. Best value selection: This process puts weight both on qualifications and price. The owner is choosing the most appealing bid both in terms of quality and money.
3. Qualifications-based selection: The present method is adopted when qualifications are used as the only criterion for the selection of the construction management company. A request for qualifications (RFQ) is helping the owner in order to acquire further information regarding the experience and the project organization competences of the contractor.
Contract Types
When the selection procedure is completed, the type of contract has also to be agreed upon. Normally, there are four contract types:
1. Lump sum: The most popular kind of agreement. The owner and the contractor set a fixed price for the whole project. The price remains the same even if the total cost of the project is proven to be higher lower than the agreed amount.
2. Unitprice: When there are objective difficulties in deciding the final price in advance, this method is preferred. The project owner offers materials with a particular unit price in order to reduce spending.
3. Cost-plus fee: A cost plus fee contract is the best contract agreement for contractors. On top of the project’s total cost and the agreed fixed fee for the contractor, any other unpredictable expenses have to be covered by the owner after in the end.
4. Guaranteed maximum price: The last type of contract doesn’t differ much than the previous one. The key difference is the maximum set price which can’t be surpassed in this case.
Project Management Processes
The bidding process is over and now it’s time for all the people involved in the project to make it happen. In general, every project has a standard life cycle, regardless of its special characteristics. This structure could be outlined to four basic stages:
1. Project Initiation
During the first phase, the objective and the feasibility of the project are determined. This is a crucial stage of the whole process, since it can indicate whether this project is a good opportunity or not. If necessary, a feasibility study is conducted and based on its results a recommended solution/plan is issued.
Once everything is decided, a project initiation document (PID) is created. The project initiation document provides the groundwork for the construction plan and is one of the most vital artifacts in project management.
2. Planning Phase
The project planning stage is where the team singles out all the work to be done. It’s an ongoing activity almost to the end of the project. The main priority, during the planning phase, is to plan time, costs and resources for the project.
Based on those requirements the team is developing the strategy that has to be followed. This is also known as scope management. Another important document that has to be prepared is a work breakdown structure (WBS), a checklist that divides all the necessary work into smaller more functional categories.

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