Posted by Construction projects are complex undertakings. Every single endeavour, such as building a home or a hospital facility, has various moving parts that need accurate coordination. Experienced and qualified engineers supervise these projects, as even a small mistake can turn very costly. Construction management projects are bound by financial constraints and stringent time parameters. So, construction managers need to consider every single detail.
The management process takes care of everything from ideation to completion. Effectively managing construction projects lets the personnel keep the whole process on track and efficient.
What Is Construction Management
Construction management involves managing diverse construction projects. This mission-based management consists of planning, budgeting, organizing, and directing every aspect of the project lifecycle. Its chief goal is to deliver projects timely and within the budget. Construction managers have a good knowledge of the various disciplines involved in construction projects, such as mechanical, electrical, and civil engineering. They work in a team on diverse projects, such as bridges, roads, shopping centres, residential homes, and commercial buildings.
Moreover, they also take on the role of consultants to builders and developers on construction-related subjects. Construction management is an advanced discipline with many facets. Some important ones include scheduling, cost control, risk assessment, and procurement.
Also Read: Pre Engineered Buildings
What Construction Management Looks Like on a Daily Basis?
Construction managers have a huge level of responsibility on a routine basis. They manage everything from construction plans to protecting worker safety. Here is what the work of construction managers looks like daily.
- Communicate the construction management plan to the workers who will perform the work. It ensures that the right person does the right job correctly. Managers also track progress daily to make sure that the project is completed on time.
- The manager manages their team of construction workers. They also contract directly with contractors to perform their part of the work. Also, these professionals collaborate with other construction specialists and architects.
- Construction management on a daily basis also involves managers taking care of their people. They schedule training to make workers execute tasks securely, communicate about safety issues to contractors and rectify safety hazards.
- Construction managers rent roll-of dumpsters and waste containers for the job. Dumpsters offer a centralized place to keep waste and scrap. Moreover, managers communicate with different visitors who come to review the progress of work at the job site.
- Complying with legal requirements and other rules of OSHA is another daily task of construction managers.
The Process of Construction Project Management
Construction project management, or CPM, requires professionals to have various skills. They must also work with various people and agencies to effectively start and finish the project.
A construction management program comprises the following six phases.
1. Initiation phase
This is the initial part of the construction project. Also called the conception phase, the construction team works with their customers to understand their needs. After that, they find out ways to fulfil them. At this point, the professionals conduct a feasibility study or a business case. Here, they review the goals, timeline, and cost approximations to figure out if they have adequate resources to complete the project. They also create a project charter to start the project.
2. Preconstruction
This phase begins after signing the contract. The team of construction managers is assembled, and the plans are tested. At this time, the construction managers get clear about the project milestones they want to fulfil and how to communicate with other team members about the project status. Further, they identify and communicate the risks in the project and how they plan to address them. Attention is also paid to the project budget and the end goal.
3. Project execution
This part of construction project management involves implementing the project plan. Construction managers factor in the changes that can occur during the execution. Also, they deal with the stakeholders, project owners, and their customers. Further, they report and set up meetings at this stage.
4. Commissioning
Commissioning consists of the following three parts:
- The construction managers test their final product to check for errors. They document their findings in the construction punch list.
- The second part is to provide the finished product to the client. It also involves walking them through everything you have built. It is critical to ensure beforehand that there are no errors and that everything is up to the client’s expectations.
- The last part is making the client know how to work with any systems that you have built. For example, you must tell them about plumbing, electricity, etc.
5. Occupancy and warranty
During this period, the client enters the building. The construction managers are not on the site. Still, they supervise the project as per the contract and policies.
6. Closure
After the warranty period ends, the project closure takes place. Although the construction managers complete the work they promised, they hold a project postmortem meeting. In this meeting, they go through the things that were right and the scope of improvement.
Different Types of Contracts in the Construction Domain
Construction contracts give a set of protocols that must be executed to set up a legal settlement between the two parties. They are essential because they summarize the agreements during negotiations between the two parties. They also make the parties check whether the obligations in the contract are being met. Here are the types of contracts that construction management services provide.
1. Unit pricing contract
Builders and engineers use this contract wherein bidding is facilitated in a written form. It does not inform the scope of work. The construction work is in accordance with rates, and the ultimate price is based on the overall contracted parts for the project.
2. Lump sum contract
The contractor, for a lump sum amount, performs work based on drawings and specifications. Usually, experienced contractors use this kind of contract because it is difficult to estimate the whole work.
3. Turn-key contract
In this contract, there’s an agreement, and the project is delivered in its entirety. It is another kind of arrangement to make a staged project development agreement with a business owner. The project gets turned over only when it’s fully functional.
4. Cost plus percentage contract
In this type of construction project management contract, the work is compensated according to the percentage of the original construction cost. The owner gives the price. This type of contract is ideal if the work needs to be done quickly and it is tough to estimate the lump sum project cost.
5. Lump sum and schedule contract
This type of contract is not different to the lump sum contract. The only difference is that here the SOR or Schedule of Rates is also incorporated in the agreement. The contractor displays SOR and the lump sum price to regulate the additional amount for additional work later on.
6. Cost plus fixed fee contract
Here the owner pays the contractor a fixed amount. It shows his profit. The fee is given as a lump sum according to the completion time, work quality, manpower needed, equipment, and the like.
7. Guaranteed maximum price contract
The builder gives the maximum fee involving the real cost and a particular or fixed fee. If it goes beyond the fee in the contract, the builder acts on it until the rate is consented to the contract.
8. Negotiated contract
In this contract type, the owner negotiates the payment method, work type, bidding sum, and the like. A tender is invited, and the contractors bid and showcase their work experience.
The Construction Management Bidding Process
Usually, a design-bid-build model is adhered to in most construction projects. The project owner takes the design from the engineers. After he has acquired a general roadmap of the project and the material take-off, they choose the general contractor via bidding.
The bids include payment terms, a statement of work, and the price. There are two kinds of bids. The open bid is publicly advertised and is typically used in public construction projects. The closed bid occurs when the project owner chooses a few contractors and gets bids from only them.
After getting different bids from the contractors, they pick one according to any of the criteria below.
- Low-bid selection – In this, the project owner chooses the contractor with the smallest bid.
- Best-value selection – In this method, the project owner assesses the qualification of the contractor. They pick one with the best price-quality relationship.
- Qualifications-based selection – This solely focuses on the qualification of the contractors. Here the project owner assesses the RFQ or the Request for Qualifications of the contractor.
Ease the Construction Management Today!
Construction management means applying the best project management practices that lead to the desired success. The service effectively manages a construction project’s schedule, price, scope, quality, safety, and function. If you are embarking on a construction project and need experts by your side, consult HRS Infrastructure.
The highly qualified and experienced engineers and construction managers will create the best possible set of construction operations to mitigate problems and produce better-quality results.