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Beginner's Guide To Construction Project Management
Beginner's Guide To Construction Project Management
Beginner's Guide To Construction Project Management
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In This Article
If you’re new to construction project management, this article will walk you through the must-know basics
(#construction-project-management-basics-how-to-win-the-project), commonly used business models for construction projects
(#business-models-for-construction-projects), and the role of a project manager in construction projects (#the-role-of-a-project-
manager-in-construction-management) so you can master the skills and expertise needed to manage dynamic, time-
sensitive construction projects of all sizes.
You’ll also learn about the best universities to study construction project management (#education-opportunities-for-
construction-project-management) and hear from industry experts (#new-to-construction-advice-from-the-experts) to better
understand best practice tips and tricks when it comes to construction project management.
Smartsheet enables you to track each project with its own dedicated project sheet and get a
unified view across all projects in a dashboard. Monitor tasks across projects and capture on-
site issues through a simple form on desktop or mobile.
History of Construction Management,
from the Pyramids to Today
As long as there have been complex building projects, there have been project managers. For
centuries, however, the person overseeing the construction of a complex building was often
the architect, which is thought to be the case in ancient structures like the Great Pyramids of
Egypt and the aqueducts of Rome.
Into the Renaissance, individual architects began to be known for their designs, like Sir
Christopher Wren of England. Wren designed and built buildings in the late 17th and early
18th centuries, including the masterpiece St. Paul’s Cathedral, that help give London its rich
countenance. Wren had a breadth of knowledge that would foreshadow the types of skills
needed on a complicated construction project, with expertise in advanced mathematics and
physics, as well as in design. He was on his building sites every day overseeing every phase
of the works.
The rules of project management began to take shape across corporate America around the
time of World War II, and by the 1950s, they were guiding civil construction projects. This
meant that the phases and tenets of managing a construction engineering project were now
being applied to a variety of corporate projects.
More and more details of managing a construction project can be done digitally (see software
section below), and that trend is expected to grow. Mobile-friendly technology and software
are set to play a major role in the field, as a younger workforce is more comfortable with the
technology, and it will allow the work to be managed and tracked from anywhere.
Closed Bid: The process for a private project starts with a closed bid, wherein the owner
invites a select group of contractors to send in their bids.
Whether the owner chooses an open or a closed bid process for the project, the bids will then
come in, and the selection of a contractor can commence based on a number of criteria:
Low-Bid Selection: The bottom line — aka the price — is the main focus for the project owner.
The winning contractor is the one who submits the lowest price for the project.
Qualifications-Based Selection: In this process, the project owner asks contractors to submit
with their bid a request for qualifications (RFQ), which summarizes the contractor’s
experience, plans for management, organizational flow, and success in staying on budget and
on schedule. The project owner then chooses the contractor with the best qualifications.
Best-Value Selection: In this approach, the project owner considers both the bid price and the
contractor’s qualifications to find the best combination of cost and skill set.
The next and final step after an owner chooses a contractor is to negotiate a payment
agreement. Both parties typically select from four payment models:
Lump Sum: A lump-sum contract is the most prevalent choice. The project owner and the
contractor come together on the overall cost for the work, and the owner must pay that
amount, regardless of the project’s success or if the final bill surpasses the initial quoted price.
Cost-Plus-Fee: As the name suggests, cost-plus-fee includes the total cost of the project as
well as a fixed fee percentage of the overall cost to the contractor, all of which the owner must
pay. This is the most contractor-friendly arrangement, since it covers all additional costs.
Guaranteed Maximum Price: With a guaranteed maximum price contract, the owner and
contractor agree on a set price that the total cost and fee cannot exceed.
Unit Price: If the two parties can’t agree on the cost ahead of time, they opt for a unit-price
model, in which the owner pays out a specific unit price throughout each phase of the project.
As noted in the two above models, the bidding process begins with the design phase. The
design stage itself can be broken down into different approaches.
Conceptual/Programming and Feasibility: This model uses the final vision of the building as
the starting point to determine needs, goals, and objectives. Considerations include the
building size, the number of rooms, how the space will be used, and even who will be using
the space. This information is generally captured in a spreadsheet listing each room, the
critical information about those spaces, and the approximate square footage of each area.
Schematic Design: Schematic designs are drawings or sketches used to identify spaces,
shapes, and patterns. Not every part of a construction project can be sketched, of course, but
those that can be are in this type of design. The drawings note materials, colors, and textures.
These sketches can also capture floorplans, where structures like elevators will be placed,
and so on.
1. Initiation
Before the project starts, a project manager must develop and evaluate the business case to
determine if the project is feasible and worth undertaking. Stakeholders may be asked to do
their due diligence and to conduct feasibility testing, if needed. When all parties agree to
proceed with the project, the project manager writes a project charter or project initiation
document (PID), which includes both the business needs and the business case.
2. Planning
Next, the project team develops a road map for all involved. This includes the project
management plan (PMP), a formal, approved document created by the project manager to
guide execution and control, as well as set baselines for scope, cost, and schedule. You can
also expect to see these documents in the planning phase:
Scope statement and scope documentation: This defines the project’s business need,
benefits, objectives, deliverables, and key milestones.
Work breakdown structure (WBS): This document breaks down the scope of the project into
visual, manageable chunks.
Communication plan: This outlines all aspects of communication, from goals and objectives to
roles to tools and methods. The communication plan creates a common framework that
everyone can work from to avoid misunderstandings or conflict.
Risk management plan: This helps project managers identify risks beforehand, including time
and cost estimates that may not be met, potential budget cuts, shifting requirements, and a
shortage of committed resources.
3. Execution
Now the work begins. Typically, all parties hold a kickoff meeting, then the project team begins
the crucial work of assigning resources, implementing project management plans, setting up
tracking systems, completing tasks, updating the project schedule, and if necessary, modifying
the project plan.
4. Performance and Monitoring
The monitoring phase often happens concurrently with the execution phase. This phase is
necessary to measure progress and performance and to ensure that items are in line with the
overall project management plan.
5. Closure
This final phase marks the project’s completion. To mark the conclusion, project managers
may hold a post-mortem meeting to discuss what parts of the project did and didn’t meet
objectives. The project team then creates a punch list of any lingering tasks, performs a final
budget, and issues a project report.
Learn more about the phases of project management (https://www.smartsheet.com/blog/demystifying-5-
phases-project-management).
"Spend time on the job site observing the work being done and asking lots of questions. Get
out in the field, get your boots muddy, and show respect to the trades who actually do the
work of getting projects built. It's important that entry-level CMs understand the many field
elements, such as weather, site conditions, limited lay down space, traffic congestion, etc.,
that can impact cost, schedule, quality, safety, and the other project variables that CMs are
responsible for managing."
— Barbara Jackson, author of Construction Management Jumpstart
(http://www.amazon.com/Construction-Management-JumpStart-Toward-Career/dp/0470609990) and director of
the Franklin L. Burns School of Real Estate & Construction Management.
(http://daniels.du.edu/faculty-research/franklin-l-burns-school-of-real-estate-and-construction-management/)
“Keep communication flowing. Bad news is just as important as good news. Making sure all
stakeholders in the project are aware of what is happening on the job will minimize the phone
calls, emails, and conference calls in the midst of trying to fix or recover from an issue onsite.”
— Dan Julien, principal of Julien Management (http://julienmanagement.com/), a construction and
project management consultant to some of the largest brands and high-profile individuals.
"Commit yourself to ongoing education. The construction industry is in the midst of change —
cost, project delivery systems, technology, demographics, and perhaps most important,
sustainability (’green’) expectations, are all impacting how projects are designed, built,
managed, and financed. Successful CMs are nimble and informed and understand the
implications of these many changes. The old way of doing things is disappearing; keeping up
to date on everything from standards and codes, to construction practices, to collaborative
project delivery and more will be required."
— Alison Dykstra, AIA, founder of Kirshner Books (http://www.kirshnerbooks.com/) and author of
Construction Project Management: A Complete Introduction (http://www.amazon.com/Construction-
Project-Management-Complete-Introduction/dp/098270349X) and Green Construction: An Introduction to
a Changing Industr (https://www.amazon.com/Green-Construction-Introduction-Changing-
Industry/dp/0982703422/)y.
"In construction management, the more we plan the luckier we get and the more successful
our project becomes. Planning begins before starting the project, including selecting the best
construction methodologies, preparing the construction schedule/program, and organizing
resources. It also encompasses daily and weekly planning through the life of the project to
ensure all tasks are completed.
“Construction is all about teamwork, and good communication is essential for every project
manager. You have to communicate with your team, subcontractors, suppliers, your client,
designers, local authorities and sometimes neighbors and members of the public."
— Paul Netscher, author of two construction project management books (http://www.pn-
projectmanagement.com/paul-netscher.html), including Successful Construction Project Management
(http://www.amazon.com/Successful-Construction-Project-Management-Practical-ebook/dp/B00JX9AA04/ref=sr_1_1?
s=books&ie=UTF8&qid=1446570047&sr=1-
1&keywords=Successful+Construction+Project+Management%3A+The+Practical+Guide+by+Paul+Netscher).
"Never stop studying or analyzing everything you see in a project. Never take anything for
granted. The construction management profession demands complete attention, great
commitment and excellent learning and analytics skills. Live the project in its day to day and
never forget to prepare for the unexpected."
— Vicente Barrera (https://www.linkedin.com/in/vicente-barrera-vazquez-95556719), who has two decades
of professional experience in industrial construction and infrastructure. He is currently a
project manager for SENER, a private engineering and technology group.
“My biggest piece of advice: Never stop learning. That was actually one of the major reasons
why we created Construction Junkie. The construction industry may still do some of the same
things we've done for decades, but there's always room for improvement and things should
always be improving. Just look at the advances being made in concrete right now. Concrete
has been used for centuries, but now scientists are figuring out ways for it to heal its own
cracks and others are engineering ways to make permeable concrete strong enough for heavy
concrete. If we stop learning, progress stops with it.”
— Shane Hedmond, editor in chief of ConstructionJunkie.com (http://www.constructionjunkie.com/)
Top Construction Management Books
for Beginners
Here are some top construction management books for beginners, either students or those
just entering the field:
Written by an expert with over 20 years of experience as a licensed contractor, this bestselling
guide provides a deep introduction into construction management basics, shares the latest
techniques and tools of the trade, and includes today’s hot issues like sustainability and build
information modeling (BIM). Readers will find out what it takes to be a construction manager
with an aptitude quiz, learn the ins and outs of contract documentation, and build and maintain
a project schedule. Learn more about Jackson's book. (http://www.amazon.com/Construction-
Management-JumpStart-Toward-Career/dp/0470609990)
The Management of Construction: A Project Lifecycle Approach by F. Lawrence Bennett
This 2003 book introduces all aspects of construction management to students and
professionals. It covers each stage of the construction project from conception to completion,
design-build, and build-own-operate-transfer, and it discusses environmental issues important
in 21st-century practice.
This article breaks down the overlap between project management and construction
management, outlining how knowledge of one can feed into the other.
Organization Strategies
There are several streams of information that need organization and management in any
construction project. These are the most business-critical:
Records Management: Record management controls the distribution, storage, and retrieval of
project records, both hard copies and electronic, in a safe, secure manner. Project managers
must make sure that all incoming and outgoing documents are transmitted through the
records management specialist, who uses software to track the records (this method will also
create a central library of all project documents and information).
Contract Management: It is important to clearly define the roles and responsibilities for the
project team members who are managing the project and the project staff responsible for
managing contracts and documents. The contract management plan is designed to set
expectations and procedures around this by addressing who has the authority to direct and
approve the contractors to work, how the contractor’s work is monitored and reported, how
they are paid and approved, how contracts are modified, which financial audits are necessary,
etc.
Contract Procurement Planning: Project managers also have to ensure that procurement
activities fit with the project plan. Some of the tasks they have to manage include:
Setting expected contract price
Adding completion dates to contracts that align with the project schedule
Commissioning Plan and List: The commissioning plan and list should be started early in the
design phase and continually updated as the project progresses. The commissioning plan is
designed to provide direction for the commissioning process during construction; to resolve
issues related to scheduling, roles, and responsibilities; and to aid in the reporting, approvals,
and coordination. It is a systematic process to ensure that buildings perform according to the
design and to the owner’s operational requirements.
Project Control Process: The project control process tracks and manages the scope, cost,
and schedule of a construction project. The goals of this process are to establish a baseline,
track performance against the baseline, forecast performance at completion and compare to
the baseline, and identify changes and monitor the effects to the baseline.
Project Requirement Definition: Also known as the statement of work, this document details
the project deliverables. In the project requirement definition (PRD), the project manager
explains the scope of work and what the project will accomplish. It helps stakeholders, team
members, and external parties all understand the goal of the project and acts as a record of
initial expectations.
As-Built Drawings: Also known as record drawings, these are edited drawings submitted by a
contractor at the end of a project. They reflect all the changes made in the working drawings
during the construction process and show the dimensions, geometry, and location of all
elements included in the contract. As-built drawings provide a quick visual into the existing
design and capture deviations from the original documents.
Daily Documentation: Keeping diaries, logs, and daily reports of project activities acts as a
reference guide after the work is completed and can mitigate any damages. This kind of
documentation can show how questions were answered, how problems were solved, and
tracks any unusual conditions on a certain day. By keeping these daily logs, you are leaving a
paper trail throughout the whole project in case anything goes awry later on.
And finally, the working drawings are created. These are the project’s final specifications and
illustrations that builders use for construction and that contractors add to their bid.
Scheduling Strategies
Organizing your documents helps you categorize and prioritize important project information,
and once you have everything stored in a central location, you can build out your project
schedule.
A well-defined schedule provides a structured approach to planning, identifies problems
before they arise, forecasts cash flows, and assesses resource requirements.
Here are the fundamental and advanced scheduling techniques:
Gantt Charts: A Gantt chart is the easiest way to create a construction schedule. It lets you
visualize your project timeline by transforming task names, dates, durations, and end dates
into cascading horizontal bar charts. Learn more about creating and using Gantt charts in
Smartsheet.
Critical Path Scheduling: The most widely used scheduling technique is the critical path
method. This method calculates the minimum project completion time and the start and end
dates for all project tasks. It identifies the critical tasks that, if delayed, will delay your entire
project. The critical path method helps you reduce timelines, manage resources, and compare
planned with actual. To learn more, read our Ultimate Guide to the Critical Path Method.
Line of Balance: This scheduling technique is best suited for repetitive work and is often
employed in road construction. It is a management control process for collecting, measuring,
and presenting facts relating to time, all measured against a specific plan. With a Line of
Balance schedule, you must allocate resources for each step, so you can make sure the next
step is not delayed.
Mini-Trial: A mini-trial is held in an informal setting with an advisor or an attorney who must be
paid. The agreement is nonbinding and can be broken. A mini-trial takes more time and more
money than mediation.
Arbitration: Arbitration is the most expensive and time-consuming way to resolve a conflict.
Each party is represented by an attorney while witnesses and evidence are presented. Then,
the arbitrator makes a ruling and his final decision is a binding agreement.
How to Create a Risk Management Plan
By focusing on prevention, project managers can spend less time dealing with spontaneous
problems and more time on reducing their impact. A risk management plan
(https://www.smartsheet.com/enterprise-risk-management-guide) is used to manage all project risks,
defines the roles of project staff in risk management, and identifies potential risks and
categorizes them in terms of probability and impact.
Smartsheet
Buildertrend
Co-Construct
Co-construct (http://global.co-construct.com/) is a web-based solution for custom builders and
remodelers. It helps businesses coordinate their selections, schedules, and photos while
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a project budget, update schedules, share files, and more.
Procore
BuildTools
Aconex
Aconex (http://www.aconex.com/) offers one solution to manage information and processes across
engineering and construction project to improve efficiency and reduce risk. Features include
document management, workflow automation, bid management, issue management, and
more. As a web-based solution, Aconex allows users to create and review documents from
any location.
PlanGrid
D/B: design/build
D/B/B: design/bid/build
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