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Construction Management: What is it?

Construction Management: What is it?

Construction Management: What is it?

Published 4 Oct 2024
Construction management is the backbone of any successful construction project. It is the process of planning, coordinating, and overseeing a project from start to finish. Whether it’s building a house or a large infrastructure project, good construction management helps avoid delays and costly mistakes. A construction manager plays a key role in this.

In this article, we’ll dive into what construction management is all about, what construction managers do, and how tools like AI, drones, and ERP systems are changing the game, and why these innovations are key to tackling challenges and keeping projects on track.
Contents

Who Is a Construction Manager?

A construction manager is the person in charge of making sure a construction project runs smoothly. They handle everything from planning to finishing the project, ensuring it stays on time and within budget. Often, construction managers work on multiple projects at once and collaborate with clients, architects, subcontractors, and engineers.

The Responsibilities of a Construction Manager

Construction managers have many important tasks, including:
Budget management. They keep track of all project costs, manage the budget, and watch for changes that could increase expenses.
Contract administration. This means creating contracts for subcontractors and suppliers, managing payments, and sourcing materials.
Health and safety management. They ensure everyone on-site follows health and safety rules, prepares safety documents, and conducts regular safety checks.
Quality management: Construction managers make sure the work meets quality standards and client expectations. They regularly check progress to avoid delays.
Daily operations management. They oversee day-to-day activities on the site, ensuring everything runs smoothly.
Team coordination. They manage and guide teams to keep the project on schedule.
Price negotiation. They negotiate pricing with suppliers and subcontractors to control costs.
Client communication. They keep clients informed of the project's progress and handle any issues or updates.
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Knowledge Requirements

Becoming a construction manager requires a mix of education, certifications, and experience. Here’s a simple guide to the key knowledge you need:
1. Get the Right Education
Start with a bachelor’s degree. Most construction managers have degrees in construction management, building science, engineering, or architecture. These programs usually take four years and cover important subjects like design, materials, engineering, and economics. Courses in math and statistics are also helpful for managing project budgets and materials.

If a four-year degree isn’t possible, some people start with a two-year associate degree and build up experience. While rare, independent contractors might succeed with a high school diploma and hands-on work.
2. Earn Certifications
Certifications aren’t always required, but they can boost your chances of success. Some useful ones include:
Associate Constructor (AIC). This is great for those starting out. It covers areas like engineering and budgeting. With more experience, you can earn the Certified Professional Constructor (CPC) to show advanced skills in managing projects.
OSHA Outreach Training. This focuses on safety at construction sites. There are 10-hour and 30-hour courses, depending on your level of experience.
Certified Construction Manager (CCM). This certification shows you’re an expert in managing all parts of a project—planning, design, safety, and costs. It’s a valuable credential for experienced managers.
3. Think About an Advanced Degree
If you want to move up in your career, a Master’s Degree in Construction Management can help. It usually takes about two years and covers advanced topics like leadership, risk management, and project economics. Many programs offer flexible options like online courses, so you can learn while working.

Construction Manager Key Skills

To be successful, a construction manager needs a mix of skills, including:
Leadership and communication. They must lead teams and ensure everyone communicates well.
Problem-solving. They need to quickly fix any issues that come up during the project.
Time management. It’s not just about managing your own time; it’s about keeping long-term projects on track. This means making sure tasks are finished on time while handling employees, materials, and resources to stay on schedule.
Negotiation and financial skills. They negotiate contracts and manage budgets to keep the project on track.
These skills help construction managers guide projects to success while balancing cost, quality, and time.

Key Components of Construction Management

Construction management is a step-by-step process. It helps ensure projects finish on time and within budget. There are five main phases. Here’s how construction managers are involved in each one.

1. Initiation

In the initiation phase, the construction manager defines the project goals. They check if the project is feasible. This means it can be done and will bring a good return on investment. The manager also helps create a basic design.

2. Preconstruction

During preconstruction, the construction manager forms a team. They break the project into smaller tasks. The manager finalizes the schedule and budget. They also plan for risks and communication. These plans are important and will be updated as the project goes on.

3. Procurement

In the procurement phase, the construction manager orders all necessary tools and services. They communicate with the project owner, contractors, and suppliers. This ensures everything is done correctly. Good communication prevents problems like running out of materials.

4. Construction

During the construction phase, the actual building happens. The construction manager works with the general contractor, subcontractors, architects, and engineers. They check for quality and answer any questions. The manager makes sure the project stays on schedule and within budget.

5. Close-Out

In the close-out phase, the construction manager does a final review with the contractor and the owner. They create a punch list of any remaining tasks or corrections. After the project is finished, the manager oversees site restoration, ensures that any rented equipment is returned, and manages the closeout of contracts with subcontractors.

Technological Aids in Construction Management

Today, it’s important for construction managers to have technical skills. Knowing how to use technology can greatly improve project results. Some examples are discussed below.

1. AI and Automation

The construction industry is changing fast. Artificial intelligence (AI) and automation are at the forefront of this change. Let’s see how this technology is changing the industry.
AI in construction can be divided into two main types: Machine Learning (ML) and Deep Neural Networks (DNNs).
Machine Learning helps computers learn from data without needing specific instructions. With ML, applications can find patterns, make predictions, and improve over time. In construction, ML is used to identify safety hazards, improve scheduling, and predict when maintenance is needed. For example, ML can analyze past projects to suggest the best timelines for future work.

Deep Neural Networks are a more advanced type of machine learning. They work similarly to how the human brain operates. DNNs consist of layers of connected artificial neurons that analyze complex information. In construction, these networks analyze images and videos from job sites. They help spot problems and monitor worker productivity, allowing quick identification of any differences from what was planned.

Benefits of AI in Construction Management

Better safety. AI tools watch for potential hazards on job sites and alert workers, which helps keep everyone safe.
Higher productivity. By automating repetitive tasks and improving how resources are used, AI helps workers be more productive. This allows them to focus on more important tasks.
Quality control. AI can check data for errors or missing information in designs and construction processes. This leads to better quality work.
Predictive insights. AI can predict project delays or budget issues. This lets managers address problems early, keeping the project on track.
Improved design. AI analyzes design details and suggests improvements, helping create stronger and more effective structures.

2. Drones in Construction Management

Drones are becoming essential tools in construction. They help in various project phases, especially during design and construction.
Drone Application During the Design Phase
Site selection. Choosing the right location for a construction project is important. Drones provide aerial images and data to assess potential sites. They capture clear pictures and videos from different heights and angles. This allows project managers, architects, and engineers to evaluate accessibility and nearby infrastructure. The information helps identify challenges that could affect construction.
Land surveying and mapping. Drones have changed land surveying. They capture detailed aerial images, which are crucial for creating accurate maps and 3D models of construction sites.
Tools like LiDAR allow drones to measure distances, heights, and shapes precisely. This makes setting up control points for mapping easier. Using drones saves time and provides valuable visual information for planning and design.
Drone Application During the Construction Phase
Earthwork and grading monitoring. Drones improve monitoring of earthwork and grading. Equipped with high-resolution cameras, they provide accurate measurements and images of the site. This helps in calculating volumes and tracking progress. Drones reduce errors and ensure efficient resource use, keeping projects on schedule.
Quality control and progress monitoring. Drones play a key role in quality control. They provide detailed images that help inspectors spot defects in the construction work. Inspectors can compare these images with blueprints to quickly identify issues.
Safety monitoring. They can enhance safety on construction sites. They can spot potential hazards, such as unstable structures or unsafe practices. This allows teams to address issues before they become serious problems. In emergencies, drones provide real-time footage to help response teams assess situations and locate missing individuals.
Material tracking and delivery. Drone can also be used to deliver materials quickly to construction sites, especially in hard-to-reach areas. This speeds up the delivery process and cuts costs associated with traditional methods.

3. Digital Automation Tools: Construction ERP

Construction ERP is software designed for construction companies. It combines information from different departments, like HR, finance, purchasing, and sales, into one place. This gives a clear view of projects.
The main benefit of construction ERP is that it helps keep projects on track. It reduces problems that can disrupt work. It also improves communication by providing real-time updates to everyone involved, whether they are on-site or in the office.
Why Do Companies Need a Construction ERP?
Construction companies in the UAE face specific challenges that make ERP software important. They deal with tough competition and need to manage projects and costs carefully to stay profitable. Labor shortages are also an issue, so managing workers efficiently is important.

Additionally, construction companies must follow many rules and regulations. They are also encouraged to adopt sustainable practices. These challenges show the need for ERP software, which helps streamline different business processes for better efficiency.
Want to make your business more efficient? Learn how FirstBit ERP can make a difference!
Using ERP software offers many advantages for construction companies:
Better data management. ERP acts as a central place for storing and accessing information, making it faster and safer to share data between departments.
Improved project management. It helps with planning and tracking projects, reducing delays and ensuring resources are used wisely.
Better decision-making. ERP provides real-time insights into financial and operational data, helping leaders make informed decisions.
Enhanced financial management. It integrates accounting functions for accurate budgeting and cost tracking.
Reduced errors. By automating routine tasks, ERP minimizes mistakes and frees up time for teams to focus on more important work.
FirstBit ERP showing a gross profit report
In the end, construction ERP makes life easier. With it, companies can handle challenges better and get projects done right.

Challenges in Construction Management

Construction project managers face many challenges. Here are some common problems and how to solve them.
Poor communication and teamwork. Construction projects involve many people working together. Good communication is key to success. However, misunderstandings often happen between workers on-site, remote teams, and office staff. This can lead to delays and extra costs. Project managers should create clear communication plans. Regular team meetings, good documentation, and using team collaboration software can help keep everyone informed.
Budget and cost control issues. Staying on budget is a big challenge. Construction projects require a lot of money, and any mistakes can lead to financial problems. Project managers need to make a detailed budget plan at the start. They should keep an eye on spending and look for ways to save money throughout the project.
Time management and scheduling problems. Completing projects on time is very important. Delays can mess up schedules and lead to penalties. Weather issues and not enough workers can cause delays. A clear project schedule with deadlines is crucial. Regularly checking progress and being ready to address delays can help keep the project on track.
Risk management challenges. Construction projects carry many risks. Problems like design mistakes and unexpected site issues can lead to serious problems. Not managing these risks well can result in costly delays. Project managers should carry out thorough risk assessments. They need a plan to identify risks, assign responsibilities, and have backup plans ready.
Resource allocation and management issues. Finding the right resources for each task can be hard. Labor shortages and equipment problems can cause delays and increased costs. Project managers must know the project needs and available resources. Careful planning and good communication with subcontractors can help ensure resources are available when needed.
Quality control challenges. Keeping quality high throughout the project is very important. Regular checks and quick fixes are necessary to maintain standards. A strong quality control program is essential. This should include regular inspections and testing to meet industry standards and ensure quality.

Using Technology and Software

Technology is very important in construction management today. Software tools can improve communication and teamwork. However, the right technology should match each project's needs. Using technology can help with tasks, enable real-time communication, and provide valuable data insights. Embracing new technology can help project managers deal with many challenges.

How FirstBit ERP Supports Construction Companies

FirstBit ERP is made for construction companies that want to grow and streamline operations. Whether managing multiple projects or expanding to new areas, FirstBit ERP offers a flexible solution built for construction needs.

Project Costing and Budget Control

Keeping a project within budget is critical. FirstBit ERP’s cost management module supports this goal.
Estimate and budget creation. Create budgets for different projects, import bills, and track expenses to boost profitability.
Monitor cash flow. Keep an eye on cash flow by project. This helps ensure profitability.
Cost control. Allocate costs accurately to prevent budget overruns. Link to finance modules for better tracking.
Procurement requisitions analysis report in FirstBit ERP

Inventory and Warehouse Management

FirstBit ERP’s inventory and warehouse module is ideal for construction, trading, and manufacturing companies. Here’s what they offer.
Real-time stock tracking. Get up-to-date data on stock levels, costs, and reservations.
Multi-warehouse management. Track items across multiple warehouses and locations with ease. Use SKUs, barcodes, or serial numbers to locate items quickly.
Automated stock accounting. Manage consignment stock and automatically update bin stock levels for accurate accounting.
Inventory reserves report in FirstBit ERP

Purchasing and Vendor Management

FirstBit ERP simplifies purchasing and vendor management for construction. It helps keep procurement smooth and organized.
Vendor and product organization. Sort products by vendor, check price lists, and monitor delivery terms.
Order and invoice tracking. Keep records of purchase orders, invoices, and notes. This helps maintain good vendor relationships.
Expense and payment control. Track advance payments and manage extra expenses like transport and customs.
Purchases by items report in FirstBit ERP

Financial and Accounting Management

FirstBit ERP supports both local and international financial standards, making accounting easier.
IFRS compliance. Keep financial records that meet UAE and IFRS standards.
Profit/Loss tracking. Generate profit and loss statements, manage general ledgers, and customize reports.
Budget and financial planning. Control accounts payable, reconcile bank accounts, and manage payment schedules.
Cash flow analysis report in FirstBit ERP

Why Choose FirstBit ERP for Construction Management?

FirstBit ERP is designed for construction companies. With local support and features tailored for the industry, it’s a solid choice for improving operations, staying compliant, and boosting profitability. It’s a solution that can grow with your company and adapt to your changing needs.

Future of Construction Management

Effective construction management is important for any construction business. It helps projects stay on track, within budget, and meet quality standards. Good management means better communication and teamwork, leading to successful outcomes.

As we look to the future, technology will play a big role in construction management. Tools like construction ERP systems, AI, and drones have tons of benefits. By embracing these innovations, companies can overcome many challenges and boost productivity.

If you want to enhance your construction management, consider using an erp system like FirstBit ERP. It can help you manage your projects more effectively and stay ahead in this competitive industry.
Reach out today to learn how FirstBit ERP can make a difference for your business!

Editor at First Bit
Aimon brings a deep understanding of the modern construction business to her articles. Her strength is providing practical content that enhances users’ understanding and usage of the software in the industry. As an editor, Aimon helps our authors reach their full potential and produce their best work.
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