What is Construction Management? Construction management is a professional service that provides a project’s owner(s) with effective management of the project’s schedule, cost, quality, safety, scope, and function. Construction management is compatible with all project delivery methods.
The owner, who commissions the project and either funds the project directly or finances it through a variety of methods. The architect/engineer, who designs the project. The general contractor, who oversees day-to-day operations and manages subcontractors.
The CM represents the owner’s interest and provides oversight over the entire project directly for the owner. His/her mandate is to work with all parties to deliver the project on time, at or under budget, and to the owner’s expected standard of quality, scope, and function.
CMs are uniquely qualified through combined education and experience to work with the owner, architect, general contractor, and other stakeholders to determine the best possible sequence of construction operations and develop a detailed schedule and budget, while also establishing plans for project safety and security and helping the owner manage risk.
This requires using project management information systems (PMISs) and complex planning techniques, like critical path method, as well as knowledge of construction methods. A 2013 study by McGraw-Hill Construction and supported by the CMAA Foundation showed that using professional CMs saved money, avoided or mitigated problems, and produced higher quality results for owners.
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What are the advantages of construction management?
Construction management has become the preferred delivery method for many building projects. At Ball Construction, about 50 percent of our projects are delivered through this method. Traditionally, the most common construction project delivery process is the design-bid-build method, whereby the owner first hires an architect and then has contractors bid on the finished drawings.
- In this scenario, the design must be 100 percent complete before contractors bid on the project.
- Essentially, the overall cost of the project is not known until the bidding process is complete.
- For example, if the architectural drawings submitted for bidding are inaccurate, there may be cost overruns and delays.
But what if your design cannot be finalized before construction is set to begin? What if you require construction cost feedback during the design phase? Construction management works especially well for complex projects where not all aspects of the design can be decided up front.
As owner, your interests take precedence. The construction manager acts as your representative to ensure all decisions are to the benefit of your project. They identify all activities involved in planning, coordinating and controlling the project and are directly involved in the tasks, budget and schedule. The construction manager effectively communicates all aspects of project development back to you from start to finish. Construction costs are developed alongside design. The construction manager oversees competitive bidding and develops realistic budgets to ensure your project is completed cost-effectively through the efficient use of resources. Construction can commence before the design is entirely complete. As owner, you are engaged at the beginning of the design phase. This is especially important if you have an elaborate project that must be completed within a short timeframe. Construction management m aximizes communication and minimizes conflict. Using a collaborative and inclusive approach, mutual trust is built during the project’s early stages. As the design develops, the construction manager provides you with expertise on subjects like constructability, cost, schedule, value engineering and material selection. There is a central point of communication, control and responsibility. As your principal point of contact, the construction manager is your go-to person and the one who has a thorough understanding of your project’s big picture. They receive input from multiple sources, manage the flow of information, integrate project participants and ensure the work is completed on schedule and on budget. Construction management can save you time and money. By compressing a number of steps in the conventional process, schedules can be accelerated. Through greater flexibility and project control, the risk of overspending is therefore minimized. You have access to a highly qualified project team, The construction manager applies their extensive industry knowledge to advise you on who is best suited to deliver the needs of the project and recommends industry experts to add to the project if necessary.
What is the difference between project management and construction management?
Project Management companies are an attractive sell to franchisors. They offer all the benefits of an in-house development team without adding overhead to your infrastructure. Often Project Management & Construction Management are used interchangeably, but this isn’t the case.
- Understanding the differences and what model best fits the franchise approach will help eliminate delays.
- Today I’ll be reviewing the differences between the two management services, and how to identify what approach will best serve your franchise system.
- What’s the difference between Project Mangers & Construction Managers? A project manager will guide and manage the process of development from real-estate through construction.
Project management companies offer a step-by-step approach, guiding the franchisee through the phases of their development process. A construction manager will only manage the construction portion of the project. A construction management company can offer insights and assistance in the construction phase, reducing cost over-runs and project delays, they often have less bandwidth to assist the franchisee with their day-to-day steps.
When does a franchisor engage a Project management or Construction Management firm? Before you go to market. Prior to issuing the FDD, a franchisor should have a solid partner to assist your franchisees through their development process. A dedicated resource will cut your franchisees development timeline by weeks, resulting in the franchisees opening their business sooner.
Who pays for the Management fee? One of the reasons you’ll want to identify a management partner prior to going to market is because the cost associated with the company will be the franchisees responsibility. You will need to make sure this is identified in your FDD Item 7.
- How do I know if I need a Project Management company or Construction Management? The responsibility of the franchisor is to provide tools for the franchisee to succeed.
- As a franchisor you can mandate certain vendors to help your franchisees through the development phase.
- If you have partnered with a vendor that the franchisee must use through each phase ( real-estate, design, architecture, construction ) this should eliminate the need for a project management firm.
Unless the franchise system has an in-house construction manager, with real-life construction experience, a construction management firm will still be needed. Partnering with company that can review documents, check permit & zoning requirements, and identify a contractor that is bidding the full scope of services, is going to save your franchisees time and money.
A majority of new franchisees will have no construction experience. A franchisor is going to want their franchisees focusing on learning the business, building brand recognition and clientele the weeks before opening day; franchisees shouldn’t also be becoming experts in construction. A construction management firm will eliminate the franchisees stresses by taking ownership of project.
Communicating with the contractor and ensuring schedules are kept. Franchisors can choose to let franchisees choose their own broker or architect. This is when a project management firm is a good choice. A project management firm can dedicate time and resources to helping the franchisee through the development process.
The project manager will ensure the franchisee is seeking to working with quality vendors and preventing them from partnering with unqualified individuals. The project management firm should have the capacity to review leases and compare them to your brands standards, have relationships with national or regional design & architect firms and understand your brands cost outlined in Item 7.
With the second approach the franchisor should partner with at least one national or regional contractor that the project management team can rely heavily on to assist the project with opening the locations. Project Managers often don’t have real-life construction experience, or the ability to identify issues that can cause project delays and prevent them.
Partnering with a General Contractor, that understands the brand can provide a baseline for the project management firm in reviewing other bids. A quality General Contractor should work in tandem with the project management firm to provide seamless communication to the franchisee and franchisor, acting as a team to best serve both parties.
Outside of the initial franchise investment, construction of the franchisees space is going to be their largest investment. Whatever approach to development a franchisor takes, a main focus should be providing expert guidance during that phase. Providing franchisees with vendors the franchisor has approved and vetted is going to make the development process faster, easier and more cost effective.
What is the purpose of construction management?
What is Construction Management? Construction management is a professional service that provides a project’s owner(s) with effective management of the project’s schedule, cost, quality, safety, scope, and function. Construction management is compatible with all project delivery methods.
The owner, who commissions the project and either funds the project directly or finances it through a variety of methods. The architect/engineer, who designs the project. The general contractor, who oversees day-to-day operations and manages subcontractors.
The CM represents the owner’s interest and provides oversight over the entire project directly for the owner. His/her mandate is to work with all parties to deliver the project on time, at or under budget, and to the owner’s expected standard of quality, scope, and function.
CMs are uniquely qualified through combined education and experience to work with the owner, architect, general contractor, and other stakeholders to determine the best possible sequence of construction operations and develop a detailed schedule and budget, while also establishing plans for project safety and security and helping the owner manage risk.
This requires using project management information systems (PMISs) and complex planning techniques, like critical path method, as well as knowledge of construction methods. A 2013 study by McGraw-Hill Construction and supported by the CMAA Foundation showed that using professional CMs saved money, avoided or mitigated problems, and produced higher quality results for owners.
What is the disadvantage of construction management?
Cons of construction management – Perhaps the biggest potential downside to using construction management is the availability of excellent specialist construction managers. Without this you are undoubtedly going to have a harder time delivering your project unless you are extremely experienced yourself.
- Failing to carry out effective competitive tendering of the project trade packages
- Failing to programme the project in the most effective way
- Failing to sufficiently manage the quality of the project
- Failing to deliver the project on time or on budget
- Failing to adequately manage the project delivery leaving you, the client, exposed to avoidable risks.
Is Construction management the same as contractor?
What is construction management? Unlike general contractors, construction management services contract with the owner for a fixed fee. This fee replaces the lump sum a general contractor would charge to cover their overhead and profit.
What does construction management include?
Duties – Construction managers typically do the following:
Prepare cost estimates, budgets, and work timetables Interpret and explain contracts and technical information to other professionals Collaborate with architects, engineers, and other construction specialists Select subcontractors and schedule and coordinate their activities Monitor projects and report progress and budget matters to the construction firm and clients Respond to work delays, emergencies, and other problems with the project Ensure that the project complies with legal requirements, such building and safety codes
Construction managers, often called general contractors or project managers, coordinate and supervise a variety of projects, including building public, residential, commercial, and industrial structures as well as roads and bridges. Either a general contractor or a construction manager oversees the construction phase of a project, including personnel, but a construction manager may also consult with the client during the design phase to help refine construction plans and control costs.
These managers coordinate construction processes so that projects meet design specifications and are completed on time within budget. Some construction managers are responsible for several projects—for example, building multiple homes—at once. Construction managers work closely with other building specialists, such as architects, civil engineers, and tradesworkers, including stonemasons, electricians, and carpenters.
Depending on the project, construction managers may interact with lawyers or government officials. For example, when installing municipal sidewalks, construction managers may confer with city inspectors to ensure that the project meets required material specifications.
- For large building projects, such as industrial complexes, a top-level construction manager may hire other managers for different aspects of the project.
- Each construction manager then oversees completion of a specific phase, such as structural foundation or electrical work, and the top-level manager coordinates with the managers to complete the entire project.
To maximize efficiency, construction managers often perform the tasks of a cost estimator, They use cost-estimating and planning software to allocate time and money for scheduling project deadlines.
Who employs a construction manager?
Who does the Construction Manager work for? – While a Construction Manager may work for a construction contracting firm, government agency or an architectural or engineering firm, approximately 75% are self-employed. Self-employed Construction Managers must know how to generate their own business opportunities, market their services, bid on jobs, and work on a wide variety of projects.
Is Construction Management in demand?
The construction industry in California is booming. Demand for property in cities across the state continues to grow. This is driving the need for AEC firms to hire skilled professionals. This demand will create unlimited opportunities for construction professionals looking to level up.
What are the four 4 Ps of project management?
4 Ps of Project Management Publish date: “A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader but becomes one by the equality of his actions and the integrity of his intent.” ~ Quote by Douglas MacArthur, American Army general, and war hero.
As we discovered in a previous blog about project management, here we shall expand a bit more and bring out some of its details. Let’s recap for those who may not have read it. Project management is the art of planning, executing, monitoring, and closing a set of tasks, duties, and chores to achieve a set goal/endeavor be it of small, medium, or long-term duration.
The main person to oversee the project is called a project manager. A project could be of any scope such as building a bridge over a river in Assam, construction of a factory in Haryana, curating a mobile app for an Ayurveda company based in Kerala, and so on.
- Also read in detail.
- There are 4 critical components puff project management which is known as the ‘4Ps” namely Product, Process, People, Project.
- Let us delve into each of them a little in detail to get a better understanding: Product – The meaning of this term is self-evident.
- It refers to the result of the project, the purpose of the project.
The project manager needs to explain the product scope so that everyone is clear on the end results. The product refers to be both tangible and intangible. For example, it could mean relocating the office or factory to a new premise or migrating to a new software/tool.
Process – A clearly defined and mapped out process is the key to the success of any project. It factors in issues, hurdles and probable solutions to ensure minimum disruption. Each stage of the process in the project needs to be mapped so that everyone knows what to do and how to do it. The correct process strategy leads to the proper execution of the project hence success.
People – The most critical component of a project and its successful implementation is human resources. A well-managed team with clear cut roles defined for each person/team will lead to the success of the project. Some of the assigned roles in project management are project manager, team members, stakeholders, process analysts, and information technology personnel.
- Managing people successfully is tricky and a role played well by good project managers.
- Project – The fourth but not the least component is the project.
- This is where the big role and responsibility of the project manager are under the spotlight.
- The manager is also known as PM informally, has the task of overseeing the project, delegating tasks, guiding and assisting team members with issues, checking on budget, and trying to ensure the project stays on track with the well-defined deadlines.
The 4Ps of is a term familiar to all as well as those studying in business schools. They can spell success in projects or if not managed well disaster. Would you like to share your experiences on this topic with us? For a complete guide, must-read. 3 claps Anand is a Salesforce Evangelist, joined the Salesforce ecosystem in 2014 helping customers to be successful with Salesforce, and joined Codleo to share the goodness with even more developers all around the world. He is based in New Delhi, with his wife, and he tries to escape summers every chance he gets.
What are the 4 elements in the project management triangle?
The project management “triangle” of scope, time, and cost has been informing projects ever since the first team member was hired to accomplish a job. In the basic setup of a triple constraint, one of three elements (or possibly more) can constrain a project.
- The elements are budget/cost, time/schedule, and scope.
- If a change is posed to any one of these elements, something else must change.
- This article explains the theory of the project management triangle, and how to use it to manage projects effectively – even as demands and conditions inevitably change.
Keeping the three elements in mind as you manage a project will help your project adapt over time and still deliver the best results possible.
What are the 4 core functions of project management?
Four Functions of Management: Planning, Organizing, Leading & Controlling.