Good Project Management Can Help Save Money

No matter how large or small a construction project is, proper management is instrumental to the overall success of the project. From the design stage to the bid process, through the construction phase and completion, management is critical.

Construction project management (CPM) has taken on many different definitions over the past few years. A simple way to describe it is the oversight of the planning, design, and construction of the project. Whether that role is filled by a construction management firm, the general contractor, or someone else, they are at the helm of the project.

Whatever the scope of construction management one is involved in, experience can make all the difference. Below are six areas in which good management can help save money on a project.

1. Building design. Getting involved early in the planning and design is beneficial to the project. Working with the owner and/or architect can help with choosing time- and cost-saving products. Knowing your audience and the purpose of the building can help determine areas to allocate money in providing the most accurate budget estimates.
2. Finding the right contractor. Take the time to build the right team from the start. Choosing the right general contractor and/or subcontractors can avoid many problems. Use specialized contractors for specialized tasks. Picking a contractor that is experienced in the region or location of the project can also make a big cost difference. This is especially critical in choosing excavators and for any subsurface work.
3. Using technology. Technology has made managing projects more efficient, saving both time and money. Programs and apps have improved areas such as communications, scheduling, daily job site logs, and punch lists, and can also be a resource for quick research. Building information modeling (BIM) is being used for 3D digital building visualization. Simulating building characteristics such as walls, columns, stairs, windows, and roofs allows these items to be adjusted to maximize business operations and reduce building cost before construction begins.
4. Contract agreements. Working to develop proper contract agreements for the bid process is very important. Managing contracts between the parties involved includes negotiating terms and conditions, ensuring contract documents are being followed, and evaluating changes throughout the construction process with proper documentation and communications. Contract agreements are a key foundation in minimizing risk, controlling cost, and defining one’s scope of work for a project.
5. Tracking daily project cost. Being able to track cost at all times throughout the project will help you better track where you are at with the budget. Adjustments can be made to fix overages and stay on track. The ability to project expense estimates accurately allows you to gauge cash flow. This also gives the owner better decision-making in strategies regarding business and finances.
6. Communication. A manager with good people skills will naturally cause the job to run smoother by reducing the number of conflicts.

Project management—from the office to the field—is truly a skill in itself. Being able to pull it all together to make the project run smoothly and safely and being able to complete it within budget takes great experience and talent. I have much respect for and take notice of people who have the gift of construction management.