What is Construction Management Process and Why is it Important?.
Often, homebuilders and construction professionals will talk about project management. Let’s start there and explain why it is only part of the complete management process.
What is Construction Project Management?
Construction project management refers to the actual project being managed. Not the complete process. Homebuilders use a variety of tools to help manage a construction project. The most common homebuilder tool is actually a notepad and a cell phone.
Most homebuilders construct less than 6 projects a year and have 5, or less, employees. They do not have the technology background, or interest, in expensive construction management software with steep learning curves.
For the homebuilders that do use a software-based project management system, an excel spreadsheet or Microsoft project management system is the norm. Very few homebuilders utilize an online project management system.
Core components for Project Management
- Scheduling System
- All scheduling activities should be interconnected
- Moving one scheduled even moves all other associated events
- Start and end dates are constantly updating
- Standard Selections and Change Orders
- Every item that the homeowner may select should be identified as a “standard selection”
- A standard Change Order system should track all items that the homeowner changes from the standard selection to the changed item
- Change Order system should inform the homeowner of all changes and track the cost and payment of such items
What is Construction Process Management?
Construction process management is the systematic management of all items relating to the financing, design, selections, scheduling, documents, photos/videos, subcontractor, allowance, and communications between the homebuilder and the homeowner during the course of construction. Post construction items, such as warranties, call-backs, and archiving should be part of the process.
To clearly communicate the construction process management, the system should incorporate the homeowner with an online system for ease of use and access.
Why is Construction Management important?
You’ve heard the horror stories regarding building a home. Not understanding the floor plans, confusion over what is a standard item and what is an upgrade (and the cost of the upgrade), poor scheduling, wrong products installed, and conflicts between the homeowner and the homebuilder.
Most conflicts in homebuilding can be avoided with proper construction process management.