Construction Project Management 101: Definitions, Processes, & Tips

Erecting a new home or commercial building is a miraculous feat. With multiple stakeholders involved, proper construction project management is key to the success of a luxury, high-end construction project.

When building, a building team has to account for every detail and contingency, every parameter, and every financial constraint. After all, a miscalculation in labor costs, materials needed, or timelines can push a project to the brink of disaster.

But the good news is that choosing the right construction project management firm can make the difference between a project that goes off without a hitch and one that drags on endlessly.

Thinking of building something special in the near future? Consider reading on.

In this article, we’ll discuss:

• What’s involved in construction project management
• What construction project management is
• Who’s involved in the process
• The stages of the construction project management process
• Challenges (and their solutions) to completing construction project management 

Grab your favorite beverage, and get comfortable. This is Construction Project Management 101.

What is construction project management (a definition)?

Construction project management includes organizing each part of a project from its conception to completion. Construction management’s goal is to ensure projects are completed on time and under budget.

In general, with project management, addressing many building concerns is key. Cost control, building scheduling, gathering the right materials, and risk assessment: they’re foundational pillars of the construction project management process.

What’s more, project managers are responsible for liaising these various components. From architects to owners to contractors, project managers have their hands in many different parts of the management process.

Let’s take a look at who else takes part in the construction process.

Who’s involved with construction management?

As mentioned earlier, the construction project manager holds, quite arguably, the most important position in the project management process. They’re manning the proverbial ship and responsible for delivering a finished project.

But, financial planners, C-suite executives, contractors, engineers, on-the-ground construction workers, and appraisers are all part of the construction journey.

This tight-knit team is responsible for staying within budget, allocating resources, avoiding scope creep (more on this later), and delivering a quality product under budget.

As well, this team is responsible for mitigating risk. The construction project management team is responsible for keeping all stakeholders informed and satisfied.

The project management team must ensure that all information is easy to access, understand, and engage with as life is breathed into the new building project.

The new building project will take shape over five stages of building.

The 5 stages of construction project management

A successful project rarely happens by accident. A general contractor helps execute the project in discrete stages. Here are the five most common stages of construction project management involved in a construction project.

1. Planning and developing a project
2. Designing a project
3. Project preconstruction
4. Gathering materials for a construction project
5. Construction time

Table: The five stages of construction project management

1. Planning and developing a project 2. Designing the project 3. Pre-construction 4. Construction materials procurement 5. Construction

1. Planning and developing your project

Before tackling a new construction project, teams have to decide whether to pursue a project in the first place. The reason is that stopping a project once it’s started can be very costly.

What’s more, the longer the project is built before being halted, the greater potential losses can become.

During this stage, project managers work with various stakeholders to conduct feasibility studies, manage capital budgets, create a pros and cons list of what’s needed, and seek input from all project stakeholders.

2. Designing your project

This is where a team flexes their creative muscles. In the design phase, the basic concept of the project comes to life.

From detailed blueprints to the final design, the design phase is all about taking an idea and conceiving it. In this stage, detailed blueprints and final design decisions are made.

The design will include drawings complete with specifications that meet the project’s requirements.

Of the many stages of a construction project, the design phase is key, as project managers need to remember that the cost of the design should stay within budget and fit with the overall management plan.

After the rough design is completed, construction teams can prepare for pre-construction.

3. Project pre-construction stage

In this construction phase, the project manager’s goal is to create a road map that will guide all stakeholders through the construction activities.

The project pre-construction phase involves building a construction plan that includes the roles and responsibilities that everyone must do. The plan also outlines the entire project life cycle, including each stakeholder’s role in completing the project and what the project costs.

What’s more, one of the most important parts of the pre-construction phase is risk assessment and contingency planning. Because actual construction timelines rarely go as planned, managing a construction project involves preparing for when timelines go awry.

Key aspects of the pre-construction process include:

• Determining and allocating resources
• Setting up a preliminary budget
• Creating timelines and deadlines for all aspects of the project
• Delegating tasks to each person
• Determining which project management tools to use

The more a team can plan — and stick to their plan — the less time, money, and resources will be needed to re-adjust when construction timelines shift.

4. Gathering materials for different types of construction projects

Every construction project needs building materials. Part of the construction process includes planning which materials are needed on the construction site.

Also, this phase includes transporting materials and services to complete the project.

What’s more, the dedicated construction manager, project owner, or supply chain managers should provide input to ensure the project doesn’t go over budget.

Two traditional methods exist for supply procurement:

1. Gathering all supplies before the project starts
2. Gathering supplies as each part of the project progresses

The construction project manager needs to align each purchase order with the construction plan and have a backup plan in place if timelines change.

Once the construction management team has all the building materials, completes the planning and design of the building, and creates a work breakdown structure for the construction job, it’s time for the best part.

Construction.

5. Construction time

The plans, resources, and jobs are now in place. The cost management contingency plan has been reviewed and approved.

Finally, it’s time for construction.

During the construction phase, the construction project management team — particularly the construction project manager — monitors and evaluates the building process. Ensuring that the project progresses on time, under budget, and according to plan is key.

And that’s everything you need to know about the five stages of construction project management.

But what you may not know is that there’s so much more related to the processes of construction management. We turn to these processes in the next sections.

Speaking of construction project management, did you know…

One of the responsibilities of a construction firm is to visualize what the project looks like before executing it.

For example, before our Soho Loft project was built, we created an animation of what the project would look like when finished. We utilized a pre-renovation effect, which showed the transformation of the space from a construction site into a finished product.

Before construction begins, consider asking your construction firm if they will show you a pre-renovation or rendering of what your next construction project will look like at completion.

Key construction project management processes

To keep a construction process moving from start to finish, project managers and construction teams should follow these four key processes:

• Brainstorming and researching what’s needed for the project
• Defining and planning the scope of the project
• Delegating roles and responsibilities to each team member
• Finalizing construction plans

Brainstorming and researching

Before construction contracts are set in stone, brainstorming and researching should be conducted.

Before accepting a project, construction teams should scrutinize the project to see if the project fits with their portfolio. Asking the following questions can help construction firms determine if taking on a particular construction project makes sense for their firm.

• “Does this make sense with our current and future portfolio of projects?”
• “Does this project fit with our company’s goals?”
• “What opportunity and risks could come about because of this project?”

Once these questions are answered, construction firms should conduct research and data-driven analyses. Budgeting, feasibility studies, financial breakdowns, and other forms of research are all fair game.

The goal of brainstorming and research for those involved in the construction planning process — namely contractors and architects — is to ensure a steady flow of high-value projects that are low risk. The more a firm can do so, the greater the chance the firm will boost their bottom line.

Defining and planning the scope of the project

Determining the project scope, creating a risk management plan, and estimating the project cost is key. To avoid “scope creep” — a term that refers to how a project’s requirements tend to increase or “creep up” over the project life cycle from ideation to completion — teams should determine strict boundaries for all moving parts of the project.

Construction teams should iron out timelines, resources, budgets, key performance indicators (KPIs), personnel needed, construction project management software used, and processes for communicating feedback during the project.

Determining the project scope will ensure peace of mind for all parties involved.

Delegating roles and responsibilities (construction project manager)

When construction management comes into play, having well-defined boundaries and expectations for all individuals can make a world of difference for the building process.

Determining who does what, when, why, where, and how helps construction teams avoid confusion and delays. Also, role delegation helps increase productivity, avoid redundancies, and ensure the project stays on time and under budget. 

Finalizing and completing construction plans

Construction project management requires that team members meet often to review plans and ensure everyone is on the same page. Throughout the process, construction project managers will want to obtain buy-in from all stakeholders.

Construction project managers are responsible for measuring and tracking progress and ensuring the status of the project is well-coordinated.

As the project nears completion, the construction project management team should triple-check their KPIs to ensure the project is going according to plan.

Common challenges related to construction project management

We’ve discussed a great deal about what an ideal construction project management team, process, and plan looks like. “What about the challenges, though?” You might wonder.

The most common challenges related to construction project management include:

• Determining accurate estimates of jobs for all parts of the project
• Staying organized during each phase of the project
• Coordinating subcontractor work

Always consider these factors before hiring your next general contractor. We’ll dive into each challenge list above in the sections below.

Determining accurate estimates

Research from data hub, Statista.com (2024), shows that the price of processed construction goods has fluctuated a great deal in the last 10 years.

As such, one of the greatest challenges in determining the scope of a construction job is estimates. Project management teams can overcome this challenge by using forecasting tools.

Forecasting tools can help estimate price fluctuations, currency drops, and price changes in common goods. The right tools can make a world of difference in the budgeting process.

Staying organized with the details

A construction project consists of many moving parts: design, permitting, building, management, and much more.

Staying organized can be a challenge. But, when data systems are connected, centralized, and well-integrated, the overall project moves with ease.

Project management tools like BuilderTrend can help streamline communication and keep all moving parts organized so stakeholders can focus on doing what they do best.

Coordinating with subcontractors

When the project owner selects their team, they often use subcontractors — specialized work teams to complete project-specific tasks. Using subcontractors can improve the quality of the project and make different types of construction projects more robust.

With that said, project managers must contend with more involved project planning. Coordinating with roofers, landscapers, drywall specialists, and more can be challenging.

Resourceful management teams in the construction industry look for subcontractors with a track record of delivering projects on time and under budget. The best way to find reliable subcontractors is by doing thorough research.

The more a construction team does their research, the easier the project planning will be.

What to look for in a construction project management firm

If you’re looking for a construction project management firm, you’ll want a team with:

• Integrity and Quality: a construction firm that infuses the highest level of craftsmanship and is transparent throughout the building process.
• Work Ethic: a construction firm that’s willing to go the extra mile to deliver the project.
• Partnership: a construction firm that collaborates with the architect, designer, and client every step of the way.
• Innovation: a construction firm with a strong resource management team, that’s always learning and striving, and that uses the latest methodologies and building technologies.

Scordio Construction: NYC’s premiere luxury construction project management firm

We hope you enjoyed learning about construction project management. Many moving pieces come into play when building a new residential or commercial building.

But, when you have a resourceful team that delivers results with a flawless track record of managing construction projects on time and under budget, there’s no reason to worry about executing a new building project.

At Scordio Construction, we understand that every project requires different project management solutions. We’re proud to offer flexible solutions to all our building partners.

Named as one of the best general contractors in New York, our team specializes in luxury residential and commercial designing and building for all different needs.

Since 1981, we’ve been serving the New York metropolitan area for all their building needs. If you’re thinking of building or designing your next build, give us a call.

We’d be happy to get to know you and see how we can help you build your future dreams. Contact us today.

Frequently asked questions (FAQ) about construction project management

What are the main phases of construction project management?

The main phases of a project schedule and construction project management at large include:

• Planning and developing a project
• Designing a project
• Project preconstruction
• Gathering materials for a construction project
• Construction time

How does the construction project manager ensure successful completion of the construction project?

Using construction management software, ironclad document management, and an award-winning team throughout the project, project managers can complete a construction project on time and under budget.

What’s most important in the pre-, during, and post-construction phases is checking in with the team, ensuring all stakeholders are satisfied, and adhering to timelines on (or under) budget.

What should I look for in a construction project management contractor?

If you’re looking for a construction project management firm, consider the following qualities in your contracting firm:

• Integrity and Quality: a construction firm that infuses the highest level of craftsmanship and is transparent throughout the building process.
• Work Ethic: a construction firm that’s willing to go the extra mile to deliver the project.
• Partnership: a construction firm that collaborates with the architect, designer, and client every step of the way.
• Innovation: a construction firm with a strong resource management team, that’s always learning and striving, and that uses the latest methodologies and building technologies.