What is Construction Project Management: Types, Methods, Tools

Construction project management and construction management are often confused with each other, but they are distinct methodological disciplines.

While construction management describes the methods for carrying out a construction project, construction project management includes a more comprehensive control of the entire planning and building process. Project managers often refer to it by its short name, CPM.

Furthermore, effective CPM takes into account not only the technical aspects of the project but also the commercial and organisational aspects, intending to successfully plan, track, control, and complete the project. Interesting, isn’t it? So let’s learn what this is and its types, methods, and useful tools in this blog!

What is Construction Project Management? (Easily Explained)

Construction project management, or CPM, involves the planning, monitoring, and control of building or infrastructure projects. This 360-degree management approach ensures that projects are completed on time, within budget, and to the required standard of quality.

In modern construction project practice, CPM is a central element for the success and profitability of projects. CPM integrates well-thought-out strategies and robust technology tools like construction project management software and building information modelling (BIM) system to be able to meet quality, costs, and deadlines.

The tasks of construction project management include (broadly mentioned):

• Coordination of all decisions with the client,
• Planning the structure in different levels of detail,
• Estimation and calculation of construction costs,
• Planning the construction and implementation,
• Obtaining building permits from the responsible authority/municipality,
• Tendering, awarding, and invoicing of subcontracting,
• Monitoring and controlling the construction process,
• Acceptance and handover of the finished project to the client.

Next, the epitome of mind-blowingly large-scale construction project management includes:

• Taj Mahal of India,
• Great Wall of China,
• Construction of Pyramids, and
• Railway infra and large dams of modern times.

Modern-Day Challenges in Construction Project Management

The right management is everything for your construction project. That said, there are a number of challenges that can cause your project to get delayed, encounter costly rework, or face cost overruns. Sometimes, tighter budgets and stricter regulations put construction project managers under enormous pressure, creating new challenges to complete the project on time. The magic triangle of scope, time, and cost can best illustrate the key challenges in construction project management:

• Scope: As construction projects grow larger, more stakeholders become involved, and the level of complexity and interdependencies increases. Managing large numbers of people is a battle.
• Time: External factors such as regulatory frameworks (high levels of bureaucracy), weather conditions, and ultimately geopolitical processes have a disproportionate impact on construction projects. These reasons lead to significant delays and require intensive change management.
• Cost: Scope and time are inevitable cost drivers. Construction and infrastructure projects focus on profitability, so project managers must closely monitor costs.

It is simply no longer possible to build profitably without well-thought-out management practices and professional project planning. Maintaining clear communication and coordination with hundreds of people involved in a project poses one of the biggest challenges for construction managers.

Having said that, it’s not all doom and gloom—the barriers can be broken down. Construction-specific project management tools can solve almost every project management challenge. We will discuss the tools used to overcome these challenges in the later sections of this article.

Phases in Construction Project Management

Every construction project goes through several project phases. From initial planning to completion, these phases help to make the project execution smooth and handover structured. The 3 main phases include:

1. Planning and Design

The project planning stage requires the utmost care as it lays out the roadmap for the project. At this stage, project managers define all the necessary steps and requirements, such as…

• Defining the project objectives: What is to be achieved?
• Preparing detailed drawings: Plans, drawings, and specifications.
• Setting the project schedule: Determining milestones and completion dates.
• Estimating & Budgeting: Calculating the cost of materials, labour, and other resources.

Look, effective planning can prevent the main causes of project delays or even failures, including inadequate resource allocation, poor communication, and inaccurate schedules. So it’s important not to cut corners at the planning stage and dedicate plenty of time to this construction phase.

An example of successful planning is highway construction, where all parties sit together—architects, engineers, contractors, and regulatory bodies such as the NHAI—to clearly define the requirements and schedules at the very beginning.

2. Execution and Control

In the planning phase, we did brain work; while in the construction project execution phase, a lot of the hard work actually happens.

This is the step to turn the plan into reality—step by step, inch by inch. The execution phase includes:

• Start of construction: All preparations are done; construction begins.
• Resource management: Optimisation of the use of labour and materials.
• Communication: This phase requires the teams’ coordination and constant exchange of information.
• Quality control: Requests for Inspection (RFI) are held to ensure that all work meets standards.

This construction project management phase requires the preparation of quality assurance documentation, daily progress reporting, and work order management.

At this stage, it is important to avoid misunderstandings or confusion. This is where construction project management software helps by centralising all the necessary information and making it accessible to all stakeholders, where each can get the updated information they need. This way, this powerful tool also improves communication and collaboration between teams.

3. Completion of the Construction Project

As the final stage of construction project management, this phase involves giving the finishing touch to the project and the preparation of formal handover documents.

The activities included in this phase are:

• Final inspection: Request for final inspections from the client or the authority.
• Documentation: Preparation of all required final reports and documentation.
• Handover: Official handover of the building to the client.

This phase also helps in introspection and documenting key insights gathered from the project as it answers questions such as:

• what went well,
• what could improve, and
• Which lessons have been learnt?

For the formal closure and handover of the project, construction management software allows you to prepare all the necessary paperwork, including as-built drawings, any change order documents, operations and maintenance (O&M) manuals, final inspection reports, final payment requests, and more. This tool assists in a clean and complete project closure that can have a positive impact on future construction projects.

Main Processes in Construction Project Management

Among the thousands of processes, we have summed up most of the parts of construction project management in these 5 crucial construction processes.

1. Project Organisation

Project managers build all other processes of a project on the foundation of the project organisation. It involves the planning, coordination, and definition of actions and processes as well as their relationships with one another, which requires a high degree of coordination and the creation of precise project structures. The core competencies also include the planning, coordination, and definition of processes and organisational structures that must meet the individual requirements of the construction project.

2. Proper Documentation

Another important aspect of construction project management is documentation, its management and control, which should ensure complete traceability of all decisions and work progress and thus enable transparent and efficient project execution. This documentation requirement not only serves the administration and organisation during the construction phase but also facilitates subsequent maintenance and servicing of the building.

3. Communication as a Key Element

Communication in construction project management is a key factor in success and serves as a link between all those involved. Professional communication management is therefore essential, particularly for large projects. For this purpose, it is advisable to invest in a digital tool that stores, controls, and monitors the flow of information between those involved in the project. In fact, project communication must be maintained at a high level, as the project’s reputation is a valuable asset that needs to be maintained and communicated both internally and externally.

4. Keeping Projects on Schedule

The preparation of schedules is important to achieve the specified objectives and milestones. Common instruments are schedule lists, bar charts, often called Gantt charts, route-time diagrams, network plans, and construction process simulations, the latter being used primarily to present the project process to clients and stakeholders.

5. Cost Management

Cost management combines the processes of cost planning, cost monitoring, and cost control. Effective cost control begins in the early stages of a project, as this is where costs can be best influenced. The aim of cost management is to achieve an optimal ratio between investment and construction usage costs, taking into account the specified standards and quality requirements of the construction project. Considering the entire life cycle of a building enables economical planning that minimises the overall costs and thus contributes to the long-term profitability of the project. Effective construction project management is no longer limited to planning and execution but also includes cost optimisation throughout the project, resulting in cost-effective project delivery. This improves your reputation and increases your chances of winning future projects.

Methods of Construction Project Management

A project management methodology is how construction project managers plan, execute, monitor, and control projects. There are many methodologies, possibly thousands. Our focus will be on 3 broad methodologies that can be used for the effective management of any type of construction project. These are Agile, Lean, and Traditional methods.

1. Agile Methods in Construction Project Management

Agile construction project management methods are flexible and adaptable. They allow for iterative planning and rapid adjustments:

• Iterative development: Projects are delivered in small, manageable chunks.
• Continuous feedback: Regular interaction with stakeholders to improve the process.
• Flexibility: Rapid response to changes in the project environment.

These methods encourage collaboration between all stakeholders to develop innovative solutions.

An example of the use of agile methods in construction is the creation of an innovation lab, where the focus is on continuous development and adaptation of the spatial design.

Project managers find agile methods particularly well-suited for construction projects that require a high degree of creativity and innovation.

2. Lean Construction Method

Lean construction methodology aims to improve processes and procedures in construction projects to reduce waste, cut costs, and increase performance.

Several methods exist to support lean construction, such as:

• The Last Planner System (LPS) is a way for construction teams to plan their work. It involves various trades and planners, known as ‘last planners,’ working together to produce daily schedules of tasks.
• Cycle planning and control on the site focus on flow. The interdependent work ‘flows’ through the building in a fixed order, which creates an uninterrupted process and eliminates any residual risks. This works well for large construction projects with many repetitive elements.
• Target Value Design (TVD) (often budget-driven) is a collaborative planning process in which all project stakeholders work together to create a well-thought-out plan that delivers the greatest value to the owner.

Learn more: Lean Management in Construction and its Benefits

3. Traditional Methods in Construction Project Management

Traditional methods in construction project management follow a linear approach characterised by clear structures and phases:

• Waterfall model: One step is completed before the next one begins.
• Defined requirements: Scope and objectives are defined at the beginning.
• Strict control: progress is closely monitored.

These methods are proven and offer a high level of planning and cost security.

In the waterfall model, all project phases are fixed from the beginning. The linear process offers little flexibility, which is why changes are often complex and expensive. However, this method has proven successful for projects with clear requirements and limited need for change.

Roles and Responsibilities of a Construction Project Manager

Construction project management is the original task of architects and civil engineers. In addition to traditional architectural and engineering firms, so-called general contractors and project managers are increasingly taking on this task.

Roles and Responsibilities of a Project Manager Include:

• Develop plans and schedules in collaboration with architects, engineers, and contractors.
• Estimating and negotiating project costs.
• Project budget preparation and monitoring.
• Securing approvals, permits, and design reviews.
• Determine appropriate methods and strategies for projects.
• Communicating with clients, contractors, and other stakeholders.
• Setting up and managing construction teams.
• Liaise with building, construction, and regulatory professionals.
• Management of the day-to-day activities of a project.

Types of Construction Projects

Broadly speaking, there are six types of construction project, listed below:

• Residential: Projects related to housing, such as building new houses, apartments, or renovating existing spaces.
• Commercial: Includes projects for business purposes, such as retail stores, office buildings, and hotels.
• Institutional: Focuses on public buildings such as hospitals, schools, and government facilities.
• Industrial: Covers manufacturing facilities, warehouses, and factories.
• Infrastructure: Includes large-scale projects such as roads, bridges, and public transport systems.
• Heavy Civil Engineering: Covers complex engineering projects such as dams and airports.

Essential Tools for Construction Project Management

The two most important tools are BIM (Building Information Modelling) and construction project management software. These tools represent the digitisation of the construction industry and are automating modern architecture, engineering, and procurement processes.

What exactly does BIM do?

You see, BIM is a technology, i.e., a software tool, that digitally maps the entire construction project. This is called digital twinning of the construction project. The creation of digital twins helps contractors to always have up-to-date drawings and to identify potential risks from the model at their disposal.

Construction Project Management Software as a Key Tool

Next is project management software for the construction industry, which helps to digitally visualise projects in Gantt charts and task boards. In addition, with clear responsibilities through resource allocation at the project and task level, realistic capacity planning in real-time can provide information about when and which people are available. Building on this, time recording provides the costs to be billed, and interfaces to accounting software can be used to provide full cost accounting for construction projects.

But what should you look for in construction project management software? Your tool must have these essential digital features.

• Construction phase plan with dependencies and deadlines.
• Sub-projects to project groups and multiple site management.
• Setting tasks with start and end dates and automating resource allocation.
• View capacity at project, department, team, equipment, and materials centrally.
• Costing information based on time tracking at the task, project, and jobsite level.
• Construction project portfolio analysis and auto-generated insights on single dashboards.
• Helps in capacity planning based on project requirements and individual working time calendars.
• Store documents with links to projects, construction phase in Gantt, activities, budget line items, or time-tracking entries.
• Automated reports, e.g., on construction project start, current construction project status, sub-project permit or approval reporting, or project cost status.

This selection of features in construction project management software enables clear, transparent, and binding planning of construction projects and reliable evaluation of project data in the construction portfolio.

What Is the Best Construction Management Software in India

For construction project management software to make your life easier, it should meet a number of requirements. It should automate processes, digitise documentation, provide real-time project status information, and more. Therefore, you should rely on project management tools that create an umbrella of automation right from the start.

By choosing NYGGS Construction Management Software, you are choosing PM software that you can rely on: you have exactly the functions that you need, absolute security in terms of legal compliance and data protection, as well as automation for an efficient workflow. Some of the benefits it brings:

• Clear dashboard

You are not on site but would like to coordinate the tasks on the construction site? Take a look at your dashboard, and you will know what is going on on every site. Structured analyses, project progress data, budget deviations, site-wise equipment conditions, and many more. With this data, you can identify the need for action early on and take appropriate steps.

• Automatic functions

Double work is part of everyday life on construction sites: information is recorded on site to be transferred to the PC later; meetings are recorded in notes and only documented afterwards. NYGGS allows you to skip these intermediate steps and establish standardized working methods that are clear to you and your team, which boosts productivity. Automatic functions and intelligently coordinated work steps ensure that you no longer waste time on repetitive tasks.

• Keeping an eye on costs

By managing documents in a comprehensible, clear, and detailed manner, the construction project management software helps you keep an eye on your costs. This creates the best conditions for completing your project in a timely and cost-efficient manner.

• Clear task assignment

Good project management software for construction gives you the opportunity to collaborate digitally with everyone involved in the project. You can assign tasks digitally and therefore always know what is going on on the construction site. Endless coordination processes are now a thing of the past.

• Improved communication

Misunderstandings are one of the most common causes of defects. By using appropriate software, you can demonstrably reduce these. All project participants work together centrally in one place and exchange information digitally on individual construction processes. Anywhere, anytime, and from any device.

• Security is the warranty

Paper-based documentation is often inadequately archived, but with construction project management software, you can ensure that all documents are stored securely. This means you don’t have to spend hours searching through folders to find processes again: by adding keywords, you can find the required document again in seconds. Audit-proof and time-stamped, you are legally on the safe side.

In summary, we can say: You have a digital tool to manage your projects efficiently, successfully, and legally with this right construction project management system. Schedule a demo to see the software in action!

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