Construction Project

Management 102
“A Beginner’s guide for Aspiring
Construction Project Managers”
What is Construction Management?
Construction management is a professional service that provides a project’s owner(s)
with effective management of the project's schedule, cost, quality, safety, scope, and
function.

Construction management is compatible with all project delivery methods. No

matter the setting, a Construction Manager’s (CMs) responsibility is to the owner
and to a successful project.
Role of Construction Project Manager
Construction managers, also known as construction project managers, oversee and allocate resources
for various construction projects. A great construction project manager is skilled in both the technical
skills required for the job and in leading and directing their team. Construction project manager
responsibilities are what guide a project to success. Projects can vary from residential, commercial,
and industrial buildings to bridges and skyscrapers.

The main construction project manager responsibilities are overall project planning, distributing
resources, time management, risk management, creating benchmarks, managing the budget,
managing staff, and managing relationships with key stakeholders.
Key Factors in Construction Industry

Business Risk
Assessment

Financial Risk
Assessment
Industrial Construction Residential Construction
• Petroleum Refineries • Single – Family Homes
• Petrochemical Plants • Multi – unit Townhouses
• Synthetic Fuel Plants • High – Rise Apartments
• Nuclear Power Plants • Condominiums
• Steel Mills
• Heavy Manufacturing Plants

Heavy Engineering Construction Building Construction

• Dams - Ports • Schools
• Tunnels - Pipelines • Universities
• Bridges - Water Treatment Plants • Hospitals
• Highways - Communication networks • Commercial Office Towers
• Aiports • Warehouses
• Urban Transit Systems
Industry Characteristics
• 10 Trillion USD employing 100 Million Globally
• Project Based and Every Project is Unique
• Largely Built On – Site
• Multiple Stakeholders with Changing Priorities
• Low Profitability – Profitability typically 5% or less
• Research & Development has not been a priority
• Conservative by Nature
Challenges & Opportunities
• Urbanization – 70% of the worlds population living in cities by 2050
• Population growing to 9 Billion by 2040
• Industry is ripe for transformation and disruption
• Technology has not yet made a significant impact on industry
methods and performance
• 56 Trillion USD investment required globally over next decade
Global Challenges
1 billion
Lack clean water

1.4 billion
Lack access to electricity

2.6 billion
Lack adequate sanitation

2.7 billion
Rely on biomass energy for cooking
The Future of Engineering and
Construction
Program Project and Construction Management Introduction

• Comparing and Contrasting:

• Program Management (PgM)
• Project Management (PM)
• Construction Management (CM)
Why is this important?
Common Elements for Success
Leadership
Integrity
Communication
Technical Understanding

Valuing Relationships

Understanding the Client

CM, PM, and PgM Represent a
Hierarchy of Responsibility
Program
Management
Delivering Multiple
Projects

Project Management Delivering

all Phases of a project

Construction Management, Delivering the Construction

and Closeout of a project

But the differences are more complex

A Framework for Comparison
Construction Management
“Ensuring it gets built right”
Construction Management
Construction Management
Project Management
“Delivering the Project Efficiently”
Project Management
Project Management
Program Management
“Delivering the Strategic Effect”
Program Management
Program Management
 Program Management
Standardized and Consistent Approach to Key Systems
Delivering Across the Program, Projects, and
Construction Site
Aligning Management Expertise
Conclusion
Construction
vs
Manufacturing
EAC Life Cycle
EAC Value Chain Participants
 Cost of Changes in Construction Life Cycle

This graph will be

deleted and it will be
drawn during the
presentation as
discussed. But keep
the title and have it as
an empty slide so as
you draw on it.
EAC Life Cycle Key Questions
EAC Life Cycle Key Questions
EAC Life Cycle Key Questions
EAC Life Cycle Key Questions
EAC Life Cycle Key Questions
EAC Life Cycle Key Questions
EAC Life Cycle Key Questions