Construction Project Management

What is Construction Project Management (CPM)?

Construction project management is primarily responsible for the planning, coordination and implementation of a construction project, whether for agricultural, residential, commercial, institutional, industrial, heavy civil or environmental purposes.

The management of building projects usually involves complex tasks that can vary wildly depending on the work in hand and requires strong communication skills, a thorough understanding of the construction process and the ability to solve a problem. Construction project management is a complex field that requires knowledge in a variety of areas such as finance, law and business.

The role of a project manager

Construction project managers are responsible for ensuring that the project moves according to plan. The objective is to manage the project in a timely and budget-driven way, but still to meet the codes, plans and specifications. A project manager could also be responsible for establishing parameters, finances, schedules, the vetting, and recruitment of subcontractors and local staff, the development of a possible conflict resolution strategy and much more.

Construction manager’s common responsibilities falls into these 7 categories:

• Project Planning

• Managing costs

• Management of time

• Managing quality

• Management of contracts

• Management of security

• Professional practises in construction management (manage the project team, define the role and responsibilities of each person…).

The role of a construction contractor

The design phase is first in every construction project, and the construction manager opens the bidding process to interested contractors when this is completed. Contractors must be able to demonstrate that they can manage public safety; decision-making, engineering, drafting, human resources, time, costs and management of the quality. The contractors that meet these guidelines are then selected by selecting low-bids, selecting best values and or selecting qualifications – all common actions.

How the project is won?

The owner will share project information with a large group of contractors, general contractors or subcontractors when a project owner is ready to begin. The process begins with a cost estimate, telling the owner how much the contractor should pay for the project.

Types of Bids

A contractor may expect two types of offers:

Open Offer: Offers are open and usually advertised for public projects. Any contractor may make an offer with an open offer.

Closed bid: A private project process begins with the closed bid, which invites the owner to submit a bid to a selected group of contractors.

Selection Criterion

The offer can be made and selection of a contractor can then begin based on a number of criteria whether the owner chooses an open or closed offer process for the project.

Selection based on Low bid:

The main focus for the project owner is the bottom line – also the price. The winner is the one who submits the lowest project price.

Selection based on qualification:

The project owner asks contractors to make an application for qualifications (RFQ) in this process, which summarises the contractor’s experiences, management plans, organisational flow and success in maintaining budgets and timetables. The owner of the project chooses the best qualified contractor.

Selection of best-value

In this approach, the project owner considers both the offer price and the qualifications of the contractor to find the most effective combination of cost and expertise.