This article explains the importance of construction management and how efficient process and cost control contribute to the success of construction projects, emphasizing the need for risk management and transparency.
Architecture is made up of four main disciplines: design, structure, construction, and environment. Each discipline’s job is to design a building beautifully, ensure it is safe, build it efficiently, and install the necessary equipment. When these four disciplines work in harmony, they create a balanced building. Meanwhile, the owner, who orders the building to be constructed, must constantly monitor the satisfactory results in each of these areas. To this end, there is a field that has recently gained importance in the construction business. This is construction management (CM).
Construction management is the systematic and professional management of all stages of a construction project (from design to construction to maintenance and repair) by a group of professionals with excellent knowledge and skills in the field of construction on behalf of an owner who lacks experience in construction. In order to manage construction projects, management theories and techniques are applied to the construction field. As a result, construction management has been recognized for its value not only in the industrial field but also in academia, and the scale of research is growing worldwide. The field is expected to grow in overall size due to the need for efficient construction in industry. In this article, we will discuss two of the main topics in construction management: process control and cost control.
Process management is the process of planning and operating the basic resources (materials, equipment, manpower, costs, and construction methods) of a construction project in the most efficient way to create maximum management effect. Construction work is carried out based on contracts through bidding, and the main goal of process management is to reduce the construction period specified in the contract while operating efficiently in terms of cost and quality.
Process management manages the construction period through three stages of basic planning (Plan), schedule planning (Schedule), and progress control (Control) through the process of iteration (Feedback). In the basic plan, tasks are categorized and the sequence of tasks is determined to create a process table. Based on the process table organized in the basic plan, the schedule calculates the total construction period and adjusts the construction period through process management theory. Finally, the progress control compares the actual construction with the planned process and modifies or changes the process table.
Since process control focuses on the construction period, it is expressed through a process table. The flowchart is drawn in the form of a network diagram, which has been developed in various fields to fulfill different purposes. The Gantt Chart, which provides a clear visual representation of the duration of tasks, the Critical Path Method (CPM), which focuses on the relationship between the tasks to be performed in a construction project, and the Program Evaluation and Review Technique (PERT), which provides a probabilistic analysis of the time to complete tasks, are used for process management. These process charts are selected and used according to the characteristics and requirements of each construction project, allowing for systematic management of construction progress.
One of the important aspects of process management is risk management. It is necessary to identify in advance the various risks that may arise during construction and to prepare countermeasures against them. For example, you need to plan for unexpected events such as weather, material supply issues, or labor shortages to ensure that the construction process is not disrupted. When these risks are managed effectively, construction timeframes can be met, costs can be reduced, and quality can be maintained.
Cost management is the efficient management and control of costs to successfully achieve cost targets within a given budget and schedule. In the construction business, cost is the cost of the resources required to carry out a project, such as materials, labor, equipment, etc. Therefore, since the business goal of any company is to pursue profit, cost management is a very important management factor that is directly related to the achievement of the business goal of a construction company. Cost management is carried out through the processes of cost estimating to predict the costs required, cost planning to plan cost reduction, cost control to control expenditures according to the plan, and cost accounting to organize and compare income and expenses with the plan.
Cost management is more than just meeting a budget; it’s a strategic component of a project’s success. Effective cost management reduces budgets, optimizes resources, and improves the overall performance of a project. This requires thorough cost analysis and planning from the very beginning of a construction project. For example, you should set a budget that takes into account variables such as fluctuating material prices and rising labor costs, and plan accordingly. It also requires constant monitoring and adjustments to minimize unnecessary expenses that may occur during construction.
As mentioned earlier, all construction projects are tendered. High competitiveness and quality materials are essential to win the bid. In this industry context, good cost management does not just increase the company’s revenue, but also helps to accumulate cost-related data that can be used for costing similar projects in the future. The more data you have, the better the service you can provide, so good cost management improves the quality of your services, which in turn improves your competitiveness in bidding contracts.
Cost management also contributes to the transparency of the project. By accurately recording and reporting all expenses, you can build a trusting relationship with the client. This creates a baseline that can be continuously managed and evaluated even after the project is over. Transparent cost management also plays an important role in preventing legal disputes and enhancing your company’s reputation.
On the owner’s side, construction management can help shorten construction time, ensure quality, and reduce costs, as well as facilitate communication and professional and objective decision-making on a construction site where different groups are involved. In the construction business, which has been stagnant due to the struggle between the owner and the contractor, it will be newly organized around the construction manager. Construction managers can collaborate with specialists in each field to achieve optimal results, increasing the chances of success for construction projects.
If you want to be a key player in the future of construction, you’ll need to keep your eyes on the construction management movement. With experience and expertise in construction management, you’ll have the ability to understand the overall flow of a construction project and manage it efficiently. This will help you create better buildings and contribute to a better society.
