Everything You Need to Know About Construction Project Management

A complete guide to construction project management

Jonny Parker
February 26, 2024

Construction project management is a complex process that requires decision-makers to juggle countless responsibilities. To execute effective leadership strategies and best practices, leaders must possess extensive industry knowledge, meticulous organizational methods, and cross-team communication skills. But what’s construction project management, exactly? More importantly, what makes a good manager, and what challenges do they face in bringing an endeavor from start to finish? 

Learn the primary construction project manager responsibilities along with common challenges and key stages of building an asset from concept to usable structure. 

What’s a construction project manager, and what do they do?

A construction project head is the individual in charge of overseeing all phases of the building process.

Project management in construction involves: 

  • Tracking deadlines
  • Monitoring expenses
  • Overseeing asset use and maintenance 
  • Ensuring project completion meets time and budget requirements

Managers work hand-in-hand with engineers, architects, and clients throughout all project phases, so they must understand each team and stakeholder’s roles and needs to ensure all parties are aligned and functioning cohesively.

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What makes a good construction project manager?

Construction project heads are indispensable to the success of a major build. To succeed, they must possess a balance of hard and soft skills, including the following.

Industry knowledge

In construction, leaders must speak knowledgeably about a wide range of topics, such as vendor agreements, build requirements, and constructions regulations. They attend meetings with engineering and architectural experts, regularly communicate with business executives and investors, and interact with subcontractors daily. 

Strong industry knowledge enables managers to interact with and communicate on behalf of these various groups for a fruitful endeavor. 

Effective communication

Team leaders communicate with people from all walks of life. In construction, they must seamlessly transition from a meeting with an engineer to a phone call with an investor. This requires them to tailor their messaging and make complex topics digestible for non-industry experts. 

Meticulous organization

The best construction project managers are highly methodical. They use their organizational skills to track materials, maintain deadline visibility, and ensure all contracting teams are on the same page.

Thorough risk management 

In long-term builds, construction managers must anticipate numerous risks associated with the initiative. For example, they should proactively mitigate material waste, prepare for scheduling conflicts, and perform fiscal acrobatics to offset unexpected expenses. 

Tactful negotiation skills

Construction project managers also need to be expert negotiators. When sourcing materials, they have to haggle over price and deadlines to meet their build crew’s needs. They must also exhibit emotional intelligence when asking subcontractors to adjust their schedules, work extra hours to meet tight deadlines, and keep the project on track. 

5 construction management project stages

Every construction project has unique circumstances and nuances, but all share basic similar stages, regardless of size or scope. Let’s examine five primary stages. 

1. Initial stage

During this stage, the customer hires a construction management company to oversee the drafting and design process.

The customer provides basic details about the build, including the built asset’s intended use, budgetary constraints, and desired completion date. They also provide information about the location if they’ve chosen one. If not, they may ask the manager for help finding and acquiring land for the build.

2. Pre-construction

In the pre-construction stage, project leaders oversee several preparatory processes, all of which occur simultaneously.

The management company arranges field testing, also known as an environmental site assessment (ESA). The ESA determines the proposed site’s usefulness and build-worthiness. They also begin building their team of engineers, architects, and supporting staff.

Meanwhile, the construction project manager negotiates contracts with subcontractors and compiles numbers to guarantee the endeavor can meet the client’s budget. 

3. Execution

At this point, it’s time to start building. The manager ensures all teams adhere to predetermined workflows and addresses unexpected challenges. Delegation is essential here, as the manager doesn’t have the time or bandwidth to oversee everything alone. 

4. Commissioning

Once the building is complete, all key systems must be brought online, including the HVAC, electrical, and plumbing systems. The commissioning process allows managers to identify and resolve any last-minute issues before the client takes possession of the built asset. 

5. Final inspection

During the final inspection, the client and various regulatory entities thoroughly examine the building. The client verifies that the built asset aligns with their expectations, while the inspectors confirm that the building is up to code and safe to occupy. 

Core construction project management processes

To incorporate all stages of the construction lifecycle, the management process involves the following distinct workflows.

Ideation and research

During ideation, the construction project manager will work closely with designers and architects to bring the client’s vision to life. This involves determining the build’s scope based on factors like the building’s size and design.

Next, the design team will conduct extensive research into the building and site to ensure the project remains viable. The manager will interpret their findings to other stakeholders and help determine a rough estimate of costs. 

Project planning

In the following stage, the construction project manager will map out the build in extensive detail. To do so, they’ll compile a materials list, identify which subcontractors will be needed, and specify all required permits.

Role determination

The next major step involves determining who does what during the project. Assigning everyone a clear role helps reduce scope creep, which occurs when an initiative’s requirements deviate from the original goals over time. When everyone knows their precise roles, the build is more likely to stay on track and within its predetermined boundaries. 

Execution and monitoring

Now, it’s time to execute. The construction project manager will continuously monitor everyone’s activities, ensuring they stay on task, within budget, and on pace to complete the build based on the project’s time constraints.

Top 5 construction project management challenges

There’s substantial risk in construction project management, and these risks are magnified when certain challenges are neglected. Here are the five primary roadblocks and their potential impacts on large-scale builds.

1. Unclear objectives

The biggest and most common challenge project leaders face is a lack of clear objectives. Managers must ensure teams communicate every goal in explicit detail. They must leave nothing to interpretation, as each subcontractor, engineer, and architect has distinct views on how to approach specific tasks.

Without clear goals, waste and overspending abound. As such, they must confirm that everyone is aligned before a project begins and promptly address discrepancies or disagreements to maintain focus. 

2. Insufficient communication

Poor communication can derail construction and lead to a series of missed deadlines and busted budgets. The construction project manager is responsible for establishing reliable lines of communication and ensuring that teams use these channels to provide regular progress updates.

Teams should also hold regular progress meetings at preset intervals to guard against scope creep and maintain cross-team alignment. Holding weekly or bi-weekly meetings is a great way to identify potential issues before they become full-blown disasters.

3. Budget limitations

Large-scale construction endeavors are notorious for running over budget. Sometimes, exceeding financial limitations is unavoidable due to the unpredictability of commercial construction endeavors. However, a great project manager can help mitigate budget issues by implementing contingencies and building cost overruns into their financial plan. 

4. Poor time management

Poor scheduling can lead to gaps between bouts of work, which costs precious time.

When possible, project leaders should minimize downtime and expect daily progress from their teams. That said, they must also build in contingencies so they can shift work around if one team’s tasks run past set deadlines.

5. Insufficient structure

Every phase of a construction job requires meticulous planning. Without clear work responsibilities and a stable chain of command, builds are prone to delays and cost overruns. Managers must therefore implement and adhere to a rigid organizational structure that considers all project aspects.

Manufacturing inventory made easy with Fishbowl

Fishbowl’s dynamic platform can support construction project management by facilitating material tracking and visibility, and our inventory management technology adapts to managers’ and construction teams’ unique needs.

For tools to assist with project elements like workflow management and budget monitoring, Fishbowl offers a robust suite of integrations to help streamline and simplify your operations. You can also effortlessly export accounting information from Fishbowl to QuickBooks. Book a demo today to learn more.