No matter what industry you’re in, starting a business can be somewhat of a gamble. So much so that the Bureau of Labor Statistics (BLS) states only 25% of startups make it past fifteen years. Part of the reason maintaining a business is so tricky is that businesses comprise many different parts. Even within a single branch, workers have different specializations, which means they’ll have different needs. So today, we want to focus on anyone thinking of starting their own construction business and discuss how to manage construction projects.
Naturally, it should come as no surprise that all construction project managers run into similar issues. So, what should you keep in mind if you manage construction projects? What mistakes should you avoid?
On top of answering these questions (and more!), we’ll also offer some general tips for any construction project managers.
There’s a lot to go over today, so let’s dig right in!
How do you measure success when you manage construction projects?
Generally speaking, a successful project displays three characteristics. It fulfills the requirements, is completed on schedule, and remains within budget. That might sound simple, but the nature of construction projects means that it’s surprisingly difficult. Because there are so many moving parts, construction project managers play a crucial role in the process.
Mistakes to avoid for construction project managers
If you manage construction projects, mistakes are going to happen. You may not be the one who makes them, but they will happen. That’s the nature of anything that requires a human touch.
The key is making small mistakes that don’t matter in the grand scheme of things. For example, accidentally scheduling a material shipment a few days late isn’t ideal, but it’s not catastrophic either. On the other hand, something like having to tear down and rebuild an entire wall could be.
If you manage construction projects, here are some major mistakes that you should avoid at all costs.
Underestimating cost
Underestimating a project’s cost is the most common and catastrophic mistake contractors make. While the popularity of cost-plus contracts has gone a long way in helping, plenty of project manager construction contracts don’t include the cost of materials. If you underestimate the costs of materials (and other resources like labor), you can quickly find yourself losing money.
Poor scheduling
We tend not to think about this in our day-to-day lives, but every action we take has an opportunity cost. Instead of vacationing, you could learn a new language or start your own business!
While maximizing the benefit of every action you take is an excellent way to drive yourself crazy, it’s a good concept to remember. Part of being a construction project manager is creating work schedules. Overscheduling employees can mean that some of your workers will waste time standing around, which is an opportunity cost on its own.
Hiring the wrong people
If you manage construction projects, controlling costs is really important. At the same time, while people generally think that cheaper is better, there’s plenty of cases where that’s false. For example, you probably wouldn’t want to get a complicated surgery done by anyone but the best. It’s not quite the same thing, but construction project managers deal with something similar.
While hiring workers who will work for a lower cost means more profit, it may also imply they don’t have as much experience or know-how. It’s the job of construction managers to find a balance between cost and quality. If the quality isn’t high enough, and something goes wrong, you could be held liable for damages– or worse.
Tips and tricks to manage construction projects
Figuring things out can be daunting if you’re new to managing construction projects. Here’s some tips and tricks to help out. Keep in mind, though, that every construction project has different needs. These tips should serve as general guidelines, but eventually, you’ll have to figure out what works for you.
Find what works for you
There’s a lot of different solutions out there. Some present themselves as software, others as methodologies or even ideologies. With all of these solutions available, it’s easy to forget that you’re an individual with unique needs, and you should tailor your approach accordingly. What works for one group may not work for you, and vice versa. If you find a solution that works for you and it performs adequately, don’t feel pressured to change it.
Divide labor
We mentioned earlier that there are many moving parts when you manage construction projects. You’ll have to organize different types of contractors, set up meetings, settle disputes, check logs, and so on. Even if you’re an industry veteran who knows everything about how to manage construction projects, you’re just one person. There’s not enough time to do everything on your own, so you’ll have to distribute (some of) the workload.
Document and organize accordingly
The introduction of software has changed things, but the world still runs on documents. Just in a different format! And it’s no different when you manage construction projects. Construction project managers should always track everything, including material costs, labor, and timelines. Communication is a big part of a successful project, and rigid documentation helps facilitate that communication.
You’ll also need a general idea of where documents are located, so it’s a good idea to figure out an organization system ahead of time.
Communicate regularly
We touched on this just above, but communication is critical. Construction projects involve a lot of different people who come from different professions. Each subcontractor performs different tasks, and often they will need to complete those tasks in a particular order. Getting in contact and staying in touch helps alleviate any potential issues that may arise when you manage construction projects.
Use software to manage construction projects more effectively
Many construction project managers have also turned to software to help manage construction projects. While there is an upfront cost, it quickly pays for itself through time savings. Not too long ago, contractors would manually check themselves in and out of work sites. This helped keep track of things, but it also took a lot of time to validate and document.
These days, contractors can check in and out of work sites from their phones, automatically documenting their movement in the process.
Budget with room for error
Unfortunately, the truth of construction projects, especially long ones, is that there will be errors. It’s important to minimize these errors and ensure they remain small. At the same time, because there will be errors, it’s important to budget with that in mind. Working with razor-thin margins may seem like a good idea to maximize profits, but it’s never a good idea to tempt fate.
How can inFlow help you manage construction projects?
More and more businesses (and contractors) are turning to software to manage construction projects. This is where inFlow comes in!
We built our field service management software with inventory management at the forefront. You can track all your materials and assets from multiple locations, run various reports, and it even has a built-in barcode system, which allows you to automate your workflow further. Another great feature of inFlow is its ability to set up reorder point notifications so you’ll never run out of stock.
With all the benefits, it’s no wonder construction project managers are turning to field management software to manage construction projects.
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