Key Functions of Construction Management and How to Manage Them

Anu Singh

Anu Singh

Senior editor

Parul Saxena

Chief editor

Last updated: August 25, 2021

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The construction industry is expected to record a CAGR of 15.7% to reach $ 738.5 billion by 2022.

The secret behind running a successful construction firm is effective construction management. But, how can you achieve it? All you need to do is develop a thorough understanding of the core functions of construction management.

Looking for Construction Management Software? Check out SoftwareSuggest’s list of the Construction Management Software solutions.

Let’s say a construction firm pays special attention to safety management. Due to the great working conditions, employees will be happy, and there will be a rise in their productivity. This will then lead to the timely completion of projects. 

Moreover, the firm will save on worker injury and fatality costs which can go up to $1,150,000 per worker. Well, we understand this can be a bit difficult to absorb and implement. So, we have created this blog to help you nail construction management functions and gain a competitive edge.  

Project Management

1. Safety and unsafe work conditions

So, what does project management involve? 

Well, it involves creating a project plan and ensuring it is implemented effectively. It means using the right project management techniques and solutions to plan project costs and track team performance for a business. Let’s see how you can manage it. 

2. Secure Project Bids

Aiming and getting the right project bids is essential for any construction firm. This includes creating a well-planned bid management process and using cost estimation tools to develop the best bid proposals. 

3. Using The Right Construction Methodology

If you face a high rework rate or handle multiple projects, you need to pause and rethink your methods. Agile methodologies can be of great benefit when it comes to analyzing risks and breaking down complex projects. 

4. Establishing Common Goals For Your Team 

Now that you have worked out your methods, the next step is defining your project scope, budgets, and goals. You must make sure that your team is informed about the goals you wish to achieve and the expectations. You can use performance tracking tools to set team goals and keep a check on project status. 

Cost Management

Making budgets and following them requires much more than discipline. Cost management is the process of planning, monitoring, and reporting costs throughout a project’s lifecycle. 

This means having the right methods and tools that help you set the budget in the initial stages and track costs over time to prevent overruns. Here is how you can stick to your budget. 

1. Create Accurate Estimates

To create an accurate cost estimate, you need to be up-to-date with the latest prices of labor and materials. For this, you should use solutions that can be integrated with cost databases. This will help you eliminate manual errors and get accurate estimates. 

2. Plan, Monitor, and Track Your Budget

Planning an effective budget requires analyzing three constraints- scope, costs, and schedule. The scope should include the design review and look for issues that can cause project delays. 

Similarly, you should look for scheduling loopholes and monitor additional expenses to stick to your budget. 

Time Management

“ Time is not the main thing. It is the only thing.”

This aspect of construction management involves planning and scheduling system tasks and activities to meet deadlines and ensure profitability. It includes training employees, delegating tasks, allocating resources, and managing risks involved in the project. To make sure you complete your project well within the deadline, follow these steps: 

1. Plan Project Schedules 

Now that you have information about what tasks are to be done and who will do them, you can create a schedule. To create an effective schedule, you must use data visualization tools such as Gantt chart solutions. This will help you understand task interdependencies and follow your plans in a better manner. 

2. Make A Risk Management Plan

Well, any project comes with its fair share of risks. You need to identify and assess all kinds and risks and then make a calculated strategy. The important step is to document and communicate all the identified risks. 

For this, you should invest in construction software that has a built-in document management functionality. It would help you centralize data and share documents easily. 

Quality Management

Quality is what sets you apart from your competitors. So, what does quality management involve? It ensures that the project commences as per certain quality metrics and is completed as per the client’s satisfaction. 

Establishing quality assurance and control processes is a part of quality management. Here is how you can take care of this aspect of construction management. 

1. Define Quality standards and Make An Assurance Plan

The first step is to lay out quality requirements for a project. Suppose you are doing this for the first time. In that case, you can refer to industry standards defined by organizations such as the American Society for Testing and Materials (ASTM) and (American National Standards Institute) ANSI. 

Once you know the requirements, you will need to document them in your company’s quality standards program. This will help you make an assurance plan faster and build trust with clients. 

2. Implement Quality Control Procedures

Once you are clear about the quality standards, you need to implement them. For this, you will need to train your employees and define their roles and responsibilities. But, how will you ensure quality adherence in the long run? 

Well, you can conduct surprise examinations of material quality, check status reports of change orders and perform periodic revision of supervision methods.

Contract Administration

Fulfilling legal terms and conditions with stakeholders should be your top priority. For construction management firms, this means creating the role of a contract administrator (CA) who takes care of the legal aspects and manages contracts. Follow these steps to make contract administration simpler. 

1. Devise A Communication Plan

The contract administrator will facilitate communication between the business and clients. His/her responsibility is to create a communication plan for gathering information. 

You should ensure that the plan is clear and concise and establishes open lines of communication. You can use email, internal messaging platforms, or other email collaboration tools for communicating. 

2. Manage Contractual Documents

Various agreements need to be signed in construction projects. These include general condition contracts, contract bids, subcontractor agreements, and time and material contracts. Make sure all these are well-documented, including any changes as the project progresses. 

To manage all documentation effectively, you can use a contract management solution. These tools come with contract templates, e-signatures, and easy file sharing options. This makes managing contracts easier and faster. 

Safety Management

Since construction involves a lot of hazardous procedures, safety is a top concern for all construction management firms. Safety management involves laying out processes to ensure construction site safety and worker well-being. 

It also includes educating employees on best safety practices and ensuring compliance with safety regulations from government authorities. 

1. Identify Safety Hazards and Improve Awareness

As a construction manager, you must research different construction hazards such as falls, struck-by, caught-in or between, and electrocution. 

Once this is done, you must create a positive environment by offering safety training to employees. This involves defining safety protocols and inspecting job sites for adherence to safety procedures. 

2. Mitigate Risks With Technology

Technology can play a critical role in improving job site safety. For instance, field staff can use mobile phones to share photos of construction site conditions. 

Likewise, building information modeling (BIM) tools can be used to simulate 3D models of facilities. This will help in identifying potential hazards even before you begin the construction process.  

Additionally, newer technologies, such as drones and safety gear, can predict worker injuries and survey unsafe job sites.

Wrapping Up 

These were some of the tried and tested methods of ensuring seamless workflows in a construction management firm. The right project management techniques, schedule adherence, quality practices, and safety management are all that it takes to take your firm a step ahead of your competitors. 

Have you tried working with a construction management solution? Share your experience in the comments below!

Anu Singh
Anu Singh has worked for known SaaS firms and holds extensive expertise in breaking down technical topics into digestible copies. Her content speaks volume about her creativity and knack for exploring new avenues. When not writing she likes to read novels, hone her editing skills and stay abreast with the latest industry trends.

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