Construction Management Why Is Construction Management Important? A Comprehensive Guide By Riya Jamble Construction Management No comments June 3, 2024 Frustrated by construction projects that always seem to go over budget, miss deadlines and leave you with a less-than-perfect outcome? Discover how mastering construction management can help you achieve your goals. In This Article Toggle What Is Construction Management?PurposeConstruction Management TeamConstruction Management vs. Project ManagementPhases of Construction ManagementPlanning and DesignPre-ConstructionConstructionMonitoring and ControllingClose OutTools and SystemsConstruction ManagerWho Is a Construction Manager?Typical Job TitlesDutiesKey Skills RequiredReasons To Become OneHow To Become OneFAQsNext Steps Compare Top Construction Management Software Leaders What Is Construction Management? Construction management is how building projects get planned, coordinated and finished. Think of it as a specialized project management focused entirely on building projects. Purpose Construction management typically covers: Creating detailed construction timelines. Monitoring finances. Collaborating with the construction management team. Ensuring the work follows plans and building codes. Performing safety inspections. Identifying risks (like bad weather) and creating contingency plans to avoid them. Providing clients with regular progress reports. Ensuring the project meets or exceeds the owner’s goals. Construction Management Team Every project requires a unique team, tailored to the specific needs and level of complexity. Here’s a glimpse into the key roles you’ll typically find on a construction team. Key leadership roles include: Construction manager Project manager Superintendent The team also needs support specialists, including: Field engineer Site clerk Construction estimator Safety officer Larger projects might also include: Quality control specialists Procurement specialists Contract administrators Compare Top Construction Management Software Leaders Construction Management vs. Project Management Construction and project management overlap, but there are key distinctions. Let’s explore those differences. Construction Management Project Management Focus Managing the building phase Managing the whole project from start to finish Responsibilities Running daily site activities Setting project goals and plans Managing workers, materials, and tools Creating schedules and budgets Ensuring safety rules are followed Handling project risks and problems Finishing on time and within budget Meeting project goals and stakeholder needs Job Titles Construction Manager Project Manager Site Manager Program Manager Field Supervisor Portfolio Manager Phases of Construction Management Below, we’ve outlined the key stages of construction management. Planning and Design This is when you lay the foundation for a successful construction project. You transform ideas into a detailed construction management plan. Here’s what you need to do: Align Designs: Partner with designers to ensure your vision becomes a buildable reality, tailored to your needs. Strategize Delivery: Select the perfect construction project delivery method to match your goals and timeline. Foresee Challenges: Identify any potential risks or problems to create smart strategies to avoid these issues or lessen their impact. Embrace Sustainability: Plan for a responsible build with smart waste management strategies that protect the environment. Pre-Construction To launch your project effectively, complete these pre-construction tasks: Build Your Team: Choose the best contractors, subcontractors and suppliers through a competitive bidding process. Negotiate contracts to get fair prices and reliable service. Get Permits: Work with local officials to get the necessary permits. This ensures your project follows building codes and regulations. Prepare the Site: Get your construction site ready, including moving utilities, demolition or digging as needed. Plan for Risks: Think about what could go wrong (delays, shortages, accidents) and have a plan to prevent or minimize those problems. Focus on Safety: Create a detailed safety plan to protect on-site workers from electrocution, falls, exposure to harmful chemicals, etc. Compare Top Construction Management Software Leaders Construction Here’s where your project comes to life. For a successful build, you’ll need to: Execute with Clarity: Make sure everyone knows their job and overall project goals. Use project management tools to track progress and hold regular meetings to solve problems and keep your team on the same page. Assure Quality: Guarantee high standards through continuous inspections, ensuring work aligns perfectly with the design specifications. Foster Safety: Conduct regular safety training sessions for all workers and supervisors. Encourage a safety culture where workers feel empowered to report hazards or unsafe conditions. Manage Change: Have a clear system for handling change orders. Before approving any changes, carefully consider how they’ll affect your project cost and schedule. Control Budget: Create a detailed budget with room for unexpected costs like design changes, equipment breakdowns or permitting delays. Oversee Administration: Take care of the paperwork — getting the right permits, updating insurance and answering questions (RFIs) quickly — to keep your project running smoothly. Coordinate Teams: Help different construction teams work together to keep the project on schedule. Document Thoroughly: Maintain records of change orders, inspections, safety protocols, communications and all other essential project details. Monitoring and Controlling This phase runs concurrently with the active construction phase. Key activities include: Performance Tracking: Compare actual progress against your schedule and budget relentlessly. Example: Notice framing is behind schedule? Investigate immediately and deploy solutions (e.g., add more workers) to get on track. Progress Reporting: Share regular updates and hold meetings with stakeholders. A detailed construction daily report helps you view completed tasks, upcoming milestones, budget status and challenges encountered. Close Out The close-out phase is about ensuring a smooth handover and learning from the project for future success. Key tasks include: Inspections and Final Touches: Conduct thorough final inspections to guarantee your project meets regulations. Address any outstanding punch list items for complete client satisfaction. Project Handover: Officially hand over the completed project to the owner. Provide essential documentation, including warranties and guarantees. Lessons Learned: Host a review session to analyze what went well and areas where you can improve your processes. Capture these insights to make your next project even better. Compare Top Construction Management Software Leaders Tools and Systems To manage successful construction projects, you need a solid toolkit. Let’s dive into the essentials. Gantt Charts: Visualize project timelines, identify dependencies and track progress against milestones. Team Scheduling Tools: Manage crew assignments and shifts, and optimize workforce usage. Dashboards: Get a real-time pulse on your project — how you’re doing in terms of budget, timeline and all those important performance KPIs. Resource Management Systems: Track materials, equipment and labor to prevent shortages and overages. Task Lists: Break down projects into manageable tasks with due dates and assigned responsibilities. Timesheets: Track labor hours for accurate cost accounting and payroll management. Online File Storage: Securely share plans, documents and photos, ensuring everyone works from the latest information. Email Alerts: Get automatic updates about important events, deadlines or problems so everyone is in the loop. Mobile App: Check project details, update progress and talk to your team using your phone or tablet. Daily Reports: Create short summaries of what work was finished, any problems found, and what will happen next. You can also find these tools in construction management systems. You should consider investing if you aren’t using them yet. Construction Manager Now that you know all about construction management, let’s meet the host of the show — the construction manager. Who Is a Construction Manager? A construction manager (CM) is responsible for turning building plans into reality. They coordinate workers, manage materials, handle budgets and ensure the project meets all safety standards. Common projects they undertake include: Civil: Focuses on building infrastructure that keeps us connected, such as roads, highways and bridges. Residential: Focuses on the places we call home, including houses, apartments and other housing types. It’s beneficial for CMs to be familiar with architectural styles and techniques for building different foundation types and structures. Industrial: Involves building places that manufacture goods and power our world, such as factories, warehouses and power plants. CMs in this field may need to understand complex engineering concepts related to electricity generation and manufacturing processes. Agricultural: Includes building structures essential to farming, such as barns, silos and storage buildings. CMs who understand modern farming practices can create buildings compatible with today’s needs and flexible enough for future growth. Institutional: Involves building places that serve our communities, such as schools, hospitals and community centers. These projects are often complex and involve many different contractors working together. Typical Job Titles Companies use different titles for construction management roles. Here are some common examples you might encounter in your job search, along with their typical average compensation. *We’ve sourced the below salary data from Glassdoor as of April 2024.* Construction Manager: $167,232 Construction Project Manager: $142,857 Construction Consultant: $134,951 Project Manager: $123,498 Chief Construction Inspector: $146,553 Senior Construction Manager: $177,699 Construction Foreman: $84,097 Duties CMs key responsibilities include: Cost Management: Carefully track expenses, craft and update budgets, and keep a pulse on the market to avoid unexpected price hikes. Contract Administration: Negotiate fair deals with subcontractors and suppliers, making sure everyone gets paid on time. Health and Safety Management: Enforce PPE use, create detailed safety plans, and provide regular training to keep everyone on site safe and sound. Total Quality Management: Set high standards, inspect work, and always look for ways to improve the process and deliver top-notch results. Compare Top Construction Management Software Leaders Key Skills Required Construction managers wear many hats: planner, organizer, leader and negotiator. A strong set of skills across various areas is essential to excel in this role. These include: Analytical and Critical Thinking Construction managers are the Sherlock Holmes of the building world. They dissect complex blueprints, spot potential problems before they cause delays, and have a knack for finding clever solutions. Motivational Skills Think of CMs as the cheerleaders of the construction site. They rally the troops, keep spirits high, and create a positive vibe that gets everyone working together like a well-oiled machine. A motivated team is productive, and that’s where the magic happens. Attention To Detail These folks have an eagle eye for detail. They’re like human magnifying glasses, spotting even the tiniest flaws that could turn into major headaches down the road. This attention to detail ensures top-notch quality and prevents costly mistakes. Communication Skills Construction managers ensure that everyone’s on the same page, the project vision is crystal clear, and there are no misunderstandings that could cause delays. Contract Management Skills Contracts are the backbone of any construction project. Construction managers navigate this legal landscape with ease, negotiating favorable terms, ensuring timely payments, and protecting the project’s bottom line. Health and Safety Knowledge Safety isn’t just a checkbox; it’s a priority. Construction managers are well-versed in safety regulations, ensuring a safe working environment for everyone on site and preventing accidents that could derail the project. Project Management Skills Construction managers are master organizers. They create detailed project plans, monitor progress, and keep everything moving smoothly. This ensures the project stays on schedule and within budget, meeting client expectations and delivering a successful outcome. Compare Top Construction Management Software Leaders Reasons To Become One Curious about a career in construction management? Here’s why it might be the perfect fit for you. Increasing Job Opportunities The numbers don’t lie — construction management is a hot field with lots of growth ahead! The Bureau of Labor Statistics (BLS) projects a 5% growth in construction manager employment from 2022 to 2032. It also estimates there will be about 38,700 openings for construction managers each year on average over the next decade. Why the demand? We need more homes, businesses and better roads and bridges. That takes skilled managers to oversee everything. Rising Global Opportunities The world’s growing population needs better buildings and roads. That means construction managers are in demand everywhere! Imagine working on exciting projects in new countries. You’ll learn about different cultures and work with teams from around the world. Financially Rewarding According to Indeed, the U.S. average construction manager’s salary is $91,347. And this is just the beginning. Your earning potential increases with experience. Complex Project Management Interests Every project brings new obstacles to overcome. If figuring out solutions and making things work gives you a sense of satisfaction, this career will deliver. You’ll also tackle different builds, and unique challenges, and constantly learn on the job. Boredom isn’t an option! The Thrill of the Finish Unlike many jobs, your work doesn’t disappear into files or reports. You’ll see your plans and efforts rise from the ground, shaping the world around you. Driving past a building, bridge, or community space you helped create is a special kind of pride. Your work has a lasting impact. Compare Top Construction Management Software Leaders How To Become One Construction management is a perfect field for those who embrace change. Here’s how to break into this exciting field: Relevant Degree Choices A degree can open the door to a great career in construction management. Jad El Achar, CEO of Hex Consultancy, says, “Construction management needs a lot of technical knowledge, so I suggest getting a Bachelor’s or even a Master’s in engineering or architecture.” (Source) Not sure where to start? Here are some options: Construction Management: This program teaches you about budgeting, scheduling, materials and safety rules. You’ll also learn to use the latest construction software. Construction Science: If you like technology, this major might be for you. It covers topics like structural analysis, soil mechanics, sustainable practices, and building materials. Architecture: For creative people, architecture is a great choice. You’ll work in design studios, learn about building systems and study the history of architecture. Engineering: This field gives you strong problem-solving and design skills. You can specialize in civil, mechanical or electrical engineering. Remember, as El Achar says, “Your degree is a passport to enter this big industry. To succeed, focus on communication, self-growth, and learning from mentors.” Professional Certificates and Training Beyond formal education, professional certifications can significantly boost your career in construction management. Here are some top certifications to consider: Certified Construction Manager (CCM) Offered by: Construction Manager Certification Institute (CMCI) Why get it: Shows you’re an expert in construction management, perfect for seasoned professionals. Eligibility: You’ll need at least 4 years of experience leading construction projects (this can be less if you have a relevant degree). Check out their CCM Application Handbook for help applying. Certified Associate Constructor (CAC) & Certified Professional Contractor (CPC) Offered by: American Institute of Constructors (AIC) Why get it: CAC: Perfect for recent grads or those new to the field. CPC: Proves you’re a highly experienced and knowledgeable construction project manager. Eligibility: CAC: No specific requirements, but designed for those starting. CPC: You need eight years of experience (4 years if you have an AC certification), including at least two years managing projects. Certified Safety Manager Construction (CSMC) Offered by: National Association of Safety Professionals Why get it: Demonstrates your expertise in construction safety. Eligibility: A mix of education, work experience, and passing an exam. Industrial Experience Your degree is important, but here’s how to get real-world skills that employers love: Internships: Many programs include internships (some are even paid!). This lets you learn on the job while you’re still in school. You can seek internships independently through online job boards or simply visiting offices. Apprenticeships: Work for a contractor and get paid while you learn. This is a great way to get in-depth knowledge, especially if you like hands-on work. Volunteering: Even without getting paid, volunteering on construction projects (at home or abroad) builds skills and shows dedication. You can help on-site or with project management tasks. Parijat Naha, Procurement Team Lead at DAMAC Properties, highlights the importance of networking and continuous learning for recent graduates in the construction industry. He suggests attending workshops, and conferences, and engaging with fellow professionals to gain valuable insights and knowledge. “Keep accumulating knowledge, it never goes to waste,” Naha advises. (Source) Compare Top Construction Management Software Leaders FAQs What’s the importance of construction management? Here’s why construction management is important: Avoid Delays: Meticulous planning and proactive problem-solving keep projects on schedule. Save Money: Detailed budgeting, cost-saving strategies and controlled change orders protect your budget. Enhance Communication: Clear communication with everyone involved ensures concerns are addressed promptly. Build Quality that Lasts: Setting clear goals and conducting thorough inspections lead to exceptional results. Minimize Waste: Smart procurement and inventory management practices save resources and money. Fuel Business Growth: Learning from experiences, refining processes and delivering outstanding results drive continuous improvement and pave the path to success. What are the key steps of the construction bidding process? Here are the key steps of the bidding process: Bid Solicitation: The project owner sends a detailed package inviting potential contractors to bid. Contractor Preparation: Interested contractors thoroughly review project documents and estimate costs to create a detailed proposal. Bid Submission: Contractors submit their sealed proposals by the deadline. Bid Opening and Review: The project owner evaluates all proposals, considering not just price but also experience and proposed timelines. Award and Contract: The winning bidder is chosen, and a contract is signed, finalizing the agreement. What are some construction project delivery methods? Some common construction project delivery methods include: Design-Bid-Build (DBB): This is the traditional way, where the project owner hires an architect or engineer to design the project, and then gets bids from contractors to build it. This is often the most affordable option, but it can take longer and have less collaboration between the designer and builder. Design-Build (DB): In this approach, the project owner hires one company to handle both design and construction. This can streamline the project timeline and communication, but may not always be the cheapest option. Construction Management at-Risk (CMAR): Here, a construction manager is involved early on to advise on design and costs, and then takes on the role of the general contractor later. This offers early cost control and a collaborative approach. Integrated Project Delivery (IPD): This is a highly collaborative model where the owner, designer and contractor share risks and rewards. This encourages innovation and can lead to better outcomes, but it requires a high level of trust and communication. Public-Private Partnerships (PPP): This model is used for large infrastructure projects, where government and private companies team up. It helps spread the cost and allows the project to benefit from private sector expertise. Compare Top Construction Management Software Leaders Next Steps Construction management systems are tools that help builders create amazing projects without stress. These systems make it easy to organize everything, from plans to budgets, and help everyone involved work together smoothly. Not sure which system is right for you? No worries! Check out our free comparison report to see how different systems stack up. It’s like a cheat sheet for finding the perfect tool for your project. So, what about construction management is key to making your building dreams come true? Let us know your thoughts in the comments! Riya JambleWhy Is Construction Management Important? A Comprehensive Guide06.03.2024