Budget & Finance Tips

Managing Construction Projects: 7 Actionable Tips

Construction project management is not an easy job as it involves lots of responsibilities. A simple mistake can cost you a lot of time and money. In worst cases, the team will leave, which will cause you to lose your clients or in worst cases can result in a lawsuit.

Being a project manager is very rewarding, but it also requires a certain attitude, experience, and soft skills. Without having expertise in the industry, you cannot be a good project manager. It is their responsibility to meet business expectations and to ensure that the project will complete before the deadline.

In this article, we will share some actionable tips for managing construction projects which are as follows:

Core Business Platform

Being a project manager, it is your responsibility to understand the main problems of the company. For example, the company has assigned you a task to build a new platform and improve its online presence. Well, it is not enough to go for a traditional world. The online world is competitive these days, and to do strong branding, you need additional planning and brainstorming to improve the entire brand.

In short, you have to provide the business with a solid foundation that will make an impact for the business.

Project Requirements

The first thing you need to do is to gather the requirements for the project. Talk with the client and provide solutions for the problems. You also need to figure out what they want and what challenges you will face by taking this project. The gathered information will help you and your team to outline a better strategy. Another important thing is construction resource management which is the responsibility of the person responsible for managing the project.

One of the major problems with requirements arise when you outsource the project to another department or third-party. The conversation you had can lead to misleading requirements. You need to make sure that you understand the project on these different levels:

Bigger Picture: Understand the main goals of the project. Your main target at the end of the day will be the completion of the construction.

High-end Components: You also need to review all the components included in the project. Furthermore, you need to know their purpose and how they interact.

Problems That Need Attention: There is no such project which does not have any problems especially in the construction industry.  You should predict these problems while discussing the requirements with the client.

Careful Contracting

The contract is an important part of any construction project. It is essential to understand the written terms and also that the contract is well-written. The requirements, expectations, risks, and obligations should be clear.

Contracts drafted by the owners often protect them from all possible claims. These types of contracts contain waivers, limitations, and exculpatory language. This means the contractor cannot file claims if anything goes wrong. The main purpose is to shift these responsibilities and risks associated with the project to someone else.

Instead, the risk should be allocated fairly between the contractor and the owner. It works this way; the risks are first allocated to the party directly responsible or has direct control over the construction. If there is no party with direct control, then these risks will be allocated to the person responsible to protect against unexpected loss. If no such party exists, then the risk is allocated to the owner.

Independent Cost Estimates

Another tip for the successful completion of the project is to have an independent estimate of the cost as the design progresses. The contractors and suppliers must double-check the cost estimates they both are going to perform for the work and supply of the products.

The owner can hire a consultant which can help with estimating the actual cost of the project. The consultant will charge a fee. However, these extra expenses are worth the cost.

Budget for The Project

Every construction project has a budget that involves the actual cost and some extra for unforeseen expenses. However, to mitigate the risk of overruns, the owner should provide a firm budget to the architect and engineer. So, they can provide a design keeping with that budget in mind. It is the responsibility of the owner to create a budget and stick to it till the end.

You also need to keep in mind that you can write in the contract that if the bud exceeds the budget then the designer will revise the plans at no cost. Some terms are difficult to discuss with the designers, but they are essential to safeguard the owner.

Peer Review the Design

Design is an important thing for any construction project. A poor design can lead to unforeseen expenses, claims, delays, and conflicts. It is also true that there is nothing that can completely mitigate the risks, but a good design can make things easier for the owner. Peer review means that an independent designer or architect will review the design plans to uncover inconsistencies, errors, and omissions. The main purpose to review the design is to avoid any delays, extra costs, and disruptions that usually arise during the project.

Reasonable Schedule for The Project

It is also important to set a reasonable timeline for the project. The actual timeline can be determined by the needs and scope of the project. It is not a good idea to start a project with strict timelines as it will have consequences and will put too much pressure on the contractor which will make him cut corners. It means that poor workmanship can cause construction defects.

For example, the weather is worse, then provide the contractor with enough time to do the job. Bad weather can affect the delivery of the materials. As you know that there is nothing you can do against nature, so an adequate time will encourage the contractor to complete the work properly. To assure access, all parties involved in the project should focus on the quality and should know that to make things right a delay must be tolerated.

SDI Admin

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