Top 5 Challenges for Construction Project Managers

There are unique challenges faced by each construction project - moving from project to project, construction project managers have distinct responsibilities and roles to fulfill. The challenges they face require both a strategic understanding of the business of construction and the tactical expertise on the issues that come with each project.

The issues that construction project managers face come from the unique structure of construction projects. All stakeholders in a construction project including the property owner, lenders, suppliers and subcontractors all have different views and interests that could come at odds along the way. There are also other challenges to think about, coming from beyond the control of the project such as government regulations and weather issues.

The on-schedule delivery of construction projects is dependent on an effective project manager. He needs to be ready to face challenges - both expected and unforeseen - to ensure project completion.

In this article we discuss some common challenges construction project managers can expect to face in a typical construction project.

1.Poorly Defined Objectives

In project planning, it is crucial to develop well-defined goals at the beginning of the project. Many project managers tend to struggle with this. These goals and objectives need to be defined, to keep project managers and all stakeholders on the same page regarding the direction of the project. It’s like going on a road trip with no destination in mind - you end up wasting time and fuel, ending up in the middle of nowhere.

Sure, project completion is always a general goal. However, each project is likely to have non-standard objectives that must be spelled out, whether it be timeline-related or pertaining to the final delivery of the project. These goals will be the basis of the decision-making structure and task delegation throughout the project.

To prevent this from happening, project managers should be proactive in asking the right questions from the client or contractor, and make sure they agree upon the goals right from the outset.

2.Budget Constraints

A common challenge in the construction sector is to stay within the budget. More often, project managers seem to find themselves going over this budget. Though, it is their job to set a reasonable expectation for cost overruns and make suitable adjustments to mitigate and manage cost-overruns. Poor judgement, lack of proper oversight, or a simple miscalculation can result in the collapse of the project.

Ultimately, the project budget is agreed upon by stakeholder expectations and the requirements of the project, before the construction process starts. So the first step a project manager takes in managing the project budget is to ensure that the project deliverables are accurately identified. Realistic cost estimates are important in planning for contingencies. The budget should factor in things that are outside the project manager’s control, such as environmental considerations, resource and labour shortages, currency exchange and so on.

Finally, it is crucial to review the project’s budget on a regular basis to ensure it stays on track. The cost can easily get out of hand when unplanned work or change orders creep into your project scope. It is important for the project manager to manage the budget of a project well.

3.Time Management

It’s the killer that results in defective designs, high rates of accidents, and loss in revenue - time constraints - the biggest issue faced by stakeholders in construction project management. Scheduling conflicts and missed deadlines can lead to contractors inadvertently cutting corners in order to catch up. This can further snowball into more delays and higher costs as they try to find and fix defects or risk contractual penalties.

Many project managers also sometimes face struggles ensuring consistent communication with the finance and sales departments due to scheduling. Case in point, ensuring appropriate lien notices are filed on time requires tight correspondence between these departments, and delays can result in lost revenue for the business.

For these reasons, construction project managers need to focus on tackling different variables that cause delays and designing workflows that ensure requirements are always met. Time management involves tracking subcontractors and suppliers to factor paperwork, labour and lead times. Unforeseeable circumstances, like weather changes should also be taken into consideration. Project scheduling and tracking methods can be used to manage time issues efficiently.

4.Unrealistic Expectations

Some of the biggest morale and productivity killers in a project are impossible deadlines and unreasonable requests by stakeholders. Sometimes, the client, the consultants and the board have unrealistic expectations of a project and want to put their ideas into action immediately. This drives competitiveness in the industry, driving stakeholders to set achievable rather than logical business requirements.

This is where a project manager’s soft skills come into play. In the same way that project managers work with their subordinates, they should be able to manage their superiors. Project managers are there to advocate for the team and respond to unrealistic expectations. By communicating the team’s feedback, they will be able to put the client and the project back on track.

5.Hazard Management

There are much greater risks involved in the construction industry, compared to other industries. Construction workers face real danger on site including bodily injuries and even loss of life. This should be a top priority for project managers. They should be proactive in identifying safety issues and strive to achieve a construction project that finishes without any untoward incident.

One of the best ways to mitigate the dangers in the field is by involving workers in the safety process. A project manager should be able to encourage them to report potential hazards in the construction site as well as any accidents that happened. Project managers should also have site-specific safety management plans. Not all construction projects are the same so it is important to tailor your plans based on the specific needs of the project.

These are just some challenges project managers can face throughout the duration of a construction project. Depending on the nature of the issue before they impact success of the project.