Construction project management is a continuous process that begins with bidding and ends at the project closure stage. Many companies use software for construction management, like Bridgit, to manage their resources and optimize their workflow more efficiently.
Construction project managers invest in the right technology to streamline the workflow and keep every project member in the loop. However, you may struggle in the industry if you have started fresh.
This article will tell you about 8 construction project management strategies to thrive in your construction business. So, let’s explore them!
8 construction project management tips
Every construction company has at least one construction manager responsible for the project execution. However, most companies struggle in the industry due to managerial inexperience, poor planning, and hiring an average workers’ team.
According to the Bureau of Labor Statistics, there’s around a 64% chance of failure in the first five years if you enter the construction industry today.
However, due to an increased demand for construction project management, you can be more successful in this business by following these 8 strategies:
- Understand project requirements
You must know what the client wants before planning the construction. Although clients have lesser construction knowledge, you must first understand their requirements and start planning for the construction.
Clients share a project requirement document while looking for construction managers. That document, also known as a Request for Proposal (RFP), includes the following project details:
- Project scope – Mostly, clients include the project scope in RFP without mentioning it. All the information is scattered, and you must prepare a scope document after comprehending the client’s requirements.
- Estimated budget – Clients will tell you their expectations regarding the construction budget. Some might provide a cost breakdown structure to help you better understand their estimated budget.
- Deadline – Clients will mention the date they want you to deliver the project.
You must first define the project scope, and if you want to acquire more information, you can contact the client. Once you fully understand the project requirement, you can start construction planning.
- Make a strong project plan
Do you know around 39% of construction projects fail due to poor planning? A failed construction project affects the company’s financial stability and reputation. So, the best thing is to thoroughly plan your construction project. How?
You must invest enough time in the construction planning phase to oversee each project detail. Remember that the client will never clearly define each project requirement. You must identify the minor details and plan your construction activities accordingly.
For example, your client might mention the deadline for concreting without mentioning its type. You must find out what material is required for concreting and other related details like rebar reinforcement and concrete design.
- Schedule everything beforehand
Schedule every construction activity in the planning phase to have a roadmap. You should collaborate with other project stakeholders while scheduling because construction project management involves a collective approach.
The scheduling process is important as it helps you set construction priorities and meet deadlines. Remember that staying behind schedule means more expenses and eventually more budget.
For example, if you don’t meet the project deadline, you must keep paying laborers’ wages, employees’ salaries, and equipment rental. So, a proper construction schedule will help you complete the project within the allocated budget.
- Wisely estimate budget
The construction budget is fuel to achieve all milestones and efficiently deliver the project. So, you must wisely estimate it during the planning phase to further manage your finances.
Clients want construction managers to provide an estimated budget during bid selection. Since they spend their money on construction, they expect you to share a sound cost plan and estimation.
No doubt, you can’t make a perfect budgeting plan, but you can use the following factors to estimate a sound construction budget:
- Experience – Use your experience from previous projects and add all construction costs to the budgeting document.
- Construction market – Know the current wages and equipment costs for construction budget estimation.
- Industry trends – Look for cost-efficient construction trends like technology, methodology, and subcontractors.
After budget estimation, gather a construction team.
- Gather a competent team
You must hire a competent team for construction without ignoring the estimated budget. You can do that by looking for multiple groups of subcontractors and considering each one’s cost. But subcontractors are the only ones included in the construction team. A construction team includes:
- Contractors – General, mechanical, and electrical contractors to execute respective construction duties.
- Managers – Project, finance, and procurement managers to manage respective company operations.
- Employees – They work at the office and communicate with the managers regarding the construction project.
- Subcontractors -They work at the construction site under the contractor’s supervision.
It’s better to hire a team with whom you have already worked. Doing so will save you money, and you don’t have to invest time in workers’ training.
- Assign responsibilities
Once you have gathered the construction teams, delegate each team the respective tasks and invite them to the construction management software. In large-scale construction, your team is diversified, and you must keep them on one page for a smooth workflow.
So, while assigning them responsibilities, ensure everyone is familiar with the construction management software. You might have to organize training sessions to make every project member join you on one platform.
- Negotiate where possible
Since you provide construction services, you must know your company’s financial strength. Bidding for every project despite having an inadequate budget might lead your company to bankruptcy.
You will likely negotiate with the following parties throughout the project:
- Clients – Negotiate with the client during the first meeting before signing the contract.
- Suppliers – Bargain with the suppliers while renting or buying construction tools and equipment.
- Subcontractors – Hire competent and budget-friendly subcontractors.
You must consider the allocated construction budget while negotiating with the above parties.
- Track project progress
You must know the project status every time, and you can do that by equipping yourself with reliable construction management software. Using the software, you should track each project activity and notify the team leaders about the upcoming deadlines.
Remotely tracking the construction progress is an efficient way to resolve workers’ queries and communicate with the client. You don’t need to go to the construction site. Instead, open the construction management software and check the project status.
You must stay ahead of your competitors in the construction industry by following the above construction project management strategies. That way, you can easily win more projects and complete them with superior quality before the deadline.