Effective project management in the construction industry - From start-up to successful execution and closure
Project management in the construction industry is crucial for successful execution, from planning to implementation and completion. Project management focuses on the efficient execution of individual projects within set time, quality and cost frameworks.
In this article, we explore the project triangle, where time, cost and quality shape the success of any project. We identify challenges such as changes in requirements and uncertainty, and provide concrete solutions that include smart process routines and criticality management. The process also emphasizes the power of project management tools, especially web-based ones, to ensure control and collaboration.
Read on to learn how thorough planning, organization, and continuous communication become the cornerstones of successful construction projects.
The project triangle: Time, Cost, Quality
The project triangle, also known as the "magic triangle," is the foundation of any project, symbolizing the delicate balance between time, cost and quality. Time represents the planned duration of the project, cost encompasses financial resources, and quality reflects the standard of project outcomes. This trio is intertwined, and changes in one factor affect the others, making achieving optimal performance in all areas a challenging but necessary task - hence the term "magic."
When the project is in balance, we can say that the project is in good harmony. The success of the process depends on the project manager's ability to assess priorities, whether it's achieving speed, ensuring quality or finding a compromise. These dynamic elements influence and complement each other, and it is essential to find an optimal balance between the elements. The project triangle is not static, and project managers must be agile and adaptable to deal with changes during the life of the project.
Possible problems in the project and suggestions on how to solve them
Challenge 1: Changes in requirements:
Issue: Unexpected changes in project requirements can upset the balance of the project triangle.
Solution: Establish a clear requirements management process from the start. Define clear guidelines for change management and maintain regular communication meetings with the customer.
Challenge 2: Lack of clarity in project goals:
Issue: Unclear project goals can lead to misunderstandings and misprioritization.
Solution: Conduct thorough analysis at the start of the project, involve stakeholders for shared understanding, and document clear, measurable goals. Review the goals regularly.
Challenge 3: Uncertainty and risk:
Issue: Uncertainty and risk can impact time and cost unforeseen.
Solution: Conduct comprehensive risk analysis at the start, identify risks, and develop clear action plans. Implement a continuous monitoring system.
Challenge 4: Lack of resources:
Issue: Limited resources can create delays and prevent achievement of project goals.
Solution: Perform careful resource planning at the start and adjust continuously according to project progress and changing needs.
Challenge 5: Technological change:
Issue: Rapid technological changes can affect project complexity and cost.
Solution: Build flexibility into the plan to absorb technological changes. Hold regular technology reviews throughout the project.
Challenge 6: Unforeseen events:
Issue: Unforeseen events such as pandemics can negatively impact the project.
Solution: Integrate a crisis management plan, identify potential incidents, and update contingency plans as needed.
Challenge 7: Conflicting goals:
Issue: Conflicts between project goals can create balance sheet challenges.
Solution: Clarify the goals from the start, involve all stakeholders in prioritization discussions, and create a clear priority list.
Challenge 8: Lack of communication:
Problem: Poor communication can lead to misunderstandings and delays.
Solution: Establish clear communication routines from the start, hold regular meetings, and use collaborative platforms for information sharing.
By proactively implementing these solutions, project managers can better manage the challenges in the project triangle throughout the project lifecycle.
Building and construction projects and their compliance with regulations:
Safe and legal execution
Construction projects must comply with strict regulations from customers and authorities to ensure safe and legal execution. This means meeting requirements from various bodies, including the Norwegian Labor Inspection Authority and building authorities. Some key requirements include:
Project accounting:
Building and construction companies must keep project accounts for projects with a value exceeding NOK 300,000.
Customer requirements:
The client expects the finished project to be delivered at the agreed time, cost and quality. An FDV manual is also required for the products used.
Public authorities:
The Norwegian Labor Inspection Authority enforces laws such as AML (Working Environment Act), BHF (Construction Client Regulations), and IKF (Internal Control Regulations) to ensure the safety of workers and the environment.
The building authorities, such as the municipality, enforce laws such as PBL (Planning and Building Act), TEK (Technical Building Regulations) and SAK (Building Case Regulations) to ensure that construction work complies with approved drawings and applicable laws.
Building and construction projects are subject to strict regulations and requirements from both customers and public authorities to ensure safe and legal implementation. This also involves requirements for health, safety and environment (HSE) planning at all Norwegian workplaces, regardless of industry.
Project management tools: Control and efficiency
Project management tools provide the necessary control over projects and associated tasks. These adapt to industry-specific needs and are aimed at the construction industry. The tools range from checklists, deviation management, project accounting, time registration, document management and information sharing to follow construction projects from start to finish.
Effective project management tools, also known as project management systems, are crucial to success and efficiency. Cloud-based accessibility ensures availability regardless of location and time, promotes collaboration, and reduces the risk of information loss.
Why use a project management system?
Project management tools streamline administrative tasks, provide better control and overview, improve communication, but are no guarantee of success. Successful implementations require clear goals, participation from key people, thorough training, alignment with business processes, and continuous communication.
The work process with a project management system -> From start-up to daily use
Start-up with customization:
Clear goals for implementation.
Contribute to cost reduction and task efficiency.
Customized templates for effective quality management.
Training for project participants:
Thorough training for all users.
Start-up meetings at the start of the project for evaluation throughout the project.
Continuous improvement:
Continuous adaptation to business needs and project requirements.
Open communication for system relevance and support for interaction.
How to choose the right project management tool?
When choosing a project management tool, there are several things to consider. Here we summarize the most important:
Choose an industry-specific supplier: Prioritize suppliers that specialize in the construction sector. Make sure they offer customized solutions and solid technical support.
Focus on comprehensive functionality: The optimal project management tool should cover all aspects of project management. Check that it includes necessary functions such as order and quotation management, costing, resource management, project accounting, document management and invoice management.
Enable effective collaboration: Make sure the system facilitates seamless interaction between the office and the construction site. Flexibility and availability in the cloud are also important factors to consider.
Consider integrations: Check the possibilities for integrations with other relevant tools and services that can further enrich the functionality.
Invest time in training: To maximize the usefulness of the tool, take the time to thoroughly learn all of its features. Also, ensure that everyone who will be using the system receives thorough training, and check if your supplier offers support in this area.
myproject - a cloud-based, seamless and well-integrated project management tool
To meet stringent customer and government requirements, the Build system has launched a powerful project management tool through the myproject modules. These modules, which include mycalc, myoffer, myplanner, myproject and mymobile, form a unified solution that effectively manages projects throughout their lifecycle.
The integration of mycalc, myoffer and myplanner into the Build system provides project managers with the necessary tools for everything from estimating and tendering processes to project planning. myproject, myplanner and mymobile act as a central hub for activity and resource management, all communication and documentation. This also creates a unified platform for health, safety and environment (HSE) management and quality assurance (QA) throughout the execution and completion phases of the project.
Book a free demo and see the project management tool in practice!
I our blog you can read more posts about the build modules. Here you will find articles about calculation, purchasing, planning, checklists and deviations!