The global construction industry is booming, with billions invested in new projects. Yet, it’s plagued by a critical problem: massive delays and stagnant productivity. A 2020 McKinsey report highlighted that while the sector accounts for 13% of global GDP, its productivity has grown by a mere 1% over the last two decades.
For project managers, overcoming these challenges means moving beyond traditional methods. It requires adopting more innovative practices and embracing digital tools to deliver projects on time and on budget. To get you there, here are six essential best practices for successful construction project management.
To that end, here are 6 best practices that businesses must adhere to for success with construction project management:
1. Define the Project Scope
Efficient project management is about ensuring that all teams have the necessary resources to implement a successful construction project. This requires them to completely understand the scope of the project — for instance, the project timeline, milestones, and allocated budget.
As a best practice, project managers must document their project scope as the “baseline” for managing construction projects. Avoid tendencies like “scope creep” that demand continuous (or out of control) escalations in the scope. Additionally, ensure that every project has a sufficient budget to cover its expenses or any unforeseen setbacks.
2. Align All Stakeholders
Every construction project involves a few stakeholders, including architects, builders, contractors, and customers. Construction projects fail when construction companies fail to meet the expectations of all their stakeholders. This can happen as stakeholders have varying expectations, particularly from large-scale projects.
Among the best practices, project managers must learn to listen to and understand their stakeholders – and why they are interested in the project. Many of them have good suggestions, thanks to their years of experience and expertise in the industry. By meeting their expectations, project management teams can set up their construction project for success.
3. Establish Clear Communication Channels
Effective communication is critical to the success of any construction project. Clear and effective communication can prevent any escalation of project-related costs and delays in construction milestones. Continuous communication can also reduce mistrust among project stakeholders and improve their engagement and productivity.
Project managers require access to a robust digital communication and collaboration platform to discuss project scope, resolve queries, and set deadlines with various project teams. Such a communication tool is also efficient for sharing real-time updates about the project’s progress.
4. Embrace Construction Technology
A comprehensive project management software is essential for providing valuable information regarding required personnel, skills, and costs from completed construction projects. Similarly, construction logs and attendance tools can automatically capture work logs and timesheets for improved on-site project management.
Of course, the technological domain continues to evolve, with innovations and developments emerging periodically. Hence, the project management teams need to stay on top of technology trends to find solutions to business challenges in this sector.
5. Plan for the Unexpected
According to a survey conducted by the Associated General Contractors of America, 9 out of 10 construction firms have experienced project delays. 75% of these firms cite material shortage, while 57% say delivery delays are the leading reasons.
Despite the best planning, construction projects can still run into problems. Effective project management is also about anticipating setbacks or unforeseen conditions. As an effective practice, address more minor setbacks early to prevent them from escalating into bigger problems. Project management teams can learn from information from past construction projects that ran into delays or other setbacks.
6. Streamline Your Invoicing and Payments
Construction projects can also face delays when contractors and construction workers do not receive their payments on time. In 2022, delayed payments cost the construction industry $208 billion. This represented a 53% increase from $136 billion in 2021. According to the same survey, nearly 50% of contractors & subcontractors had to wait for 30 days (or more) for their payments.
Construction companies continue to rely on manual tools like MS Excel and QuickBooks to process their vendor invoices. Automated HR & Payroll software can help them streamline their invoice payments to reduce project delays.
Building a More Efficient Future
In today’s complex construction landscape, success hinges on connecting every piece of the project puzzle. By following these best practices, you can prevent costly delays and budget overruns. Most importantly, leveraging integrated project management solutions is no longer a luxury—it’s essential for executing and completing your projects successfully.
At CEM Business Solutions, we have designed the best construction management software that can help companies monitor their project status, manage their budget, and process their invoices on time.
Ready to use technology to streamline your next construction project? Let us help. Book a demo today!
