What is construction project management? Beyond the basics to better margins and control

Construction project management is often defined as the process of planning, coordinating and overseeing a build from start to finish. But for experienced builders, it goes far beyond schedules and task lists.

At its core, effective project management is what determines how smoothly your jobs run, how profitable they are and how much control you have as your business grows. The difference between staying busy and scaling successfully often comes down to the systems behind your projects.

In this guide, we’ll cover what construction project management really means today – and how the right approach can help you improve margins, streamline operations and run a more predictable, efficient business.

What is construction project management?

Construction project management is the process of defining, organizing and carrying out all stages of a construction project. The three main stages of construction are pre-construction, physical construction and post-construction.

What does it take to manage a construction project effectively?

Managing a construction project takes a mix of the right resources brought in at the right time to maximize return. Three must-haves to include in this mix are project plans, people and tools. 

1. The right plan for your project’s needs

A successful project starts with a clear and detailed project plan to work from. This plan outlines every step needed to be successful throughout a project, beginning with project ideation and planning, and ending with execution and closeout. 

A detailed project plan should include: 

• Designs, floorplans, permits and other documentation
• An estimated construction budget
• An estimated construction timeline and schedule
• Communication and coordination efforts with contractors and subcontractors
• Procurement orders and inventory management lists
• Action plans for work to complete at each construction phase

2. The right people in place

Identifying the right people involved in a project is essential in every construction build. It ensures you have the right knowledge, skills and authority needed to complete work or make decisions based on what the project plan calls for. Apart from skilled project managers, here are some examples of different stakeholders to involve throughout project management:

• Internal teams, including main contractors, estimators, construction workers or other independent contractors.These are people employed directly by the construction company to complete work on a project. 
• Internal authority, including business owners, developers or management teams. These are people within the construction company who have direct relationships with the client and the ability to make larger-scale decisions about budget, procurement, prioritization and changes to scope of work. 
• External teams, including subcontractors (plumbers, electricians, carpenters), suppliers and other group purchasing organization teams. These are individuals who are hired to help a specific task or phase of a construction project, but aren’t directly employed by your company.
• External authority, including clients, inspectors, and permitors. These are individuals who have influence over the decision making and direction of a project management plan.

3. The right tools for the job

Supply chain delays can lead to construction delays. A part of project management is ensuring you have the right tools at the right time to complete construction needs on time. 

Tools can range from the supplies used to structurally build a home, like lumber, to the equipment needed, like excavators or lifts. Also included in this category are other physical resources: appliances, finishings and other construction materials. 

It’s important to remember the technical tools used in project management, too. This includes best practices for communication, the way you’re reporting progress, and the systems you use to measure profitability and financial health per job. 

“We can do just about everything with Buildertrend, including managing projects, keeping track of to-do lists and scheduling. It allows my team and me to document moving parts of a project easily and track it in the system in real-time.” – Kevin Mond, Business Development and Sales at HDR Remodeling

What are the phases of construction project management?

Construction project management spans pre-construction, construction and post-construction and is typically broken into these key phases: initiation, setup, kickoff, planning, execution, monitoring, closeout, evaluation and reporting. Each phase helps ensure a project stays on schedule, on budget and aligned with the builder’s goals from start to finish.

What does a project manager do during the pre-construction phase?

1. Project initiation. After a project is approved, the project manager works to define project scope. 
2. Project setup. Using the project scope as a guide, the project manager develops the project plan and begins to set it up in a project management tool. This step formalizes the scope, sets the timeline and identifies to-do items for different people. 
3. Project kickoff. As a final step of pre-construction, project managers kick off the project. This step involves all stakeholders and heavily relies on a strong communication process to ensure everyone is starting work with the same understanding of the project’s needs, goals and target dates.

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What does a project manager do during the construction phase?

1. Project planning. As construction begins, details and logistics need to be fine-tuned on an ongoing basis. For example, the overarching project plan may set a date range to source and receive supplies. During the construction phase, the needs of each order are matched with each supplier and plans are made for the timeline of purchasing, storage and delivery to the job site. 
2. Project execution. Everything agreed on between the builder and the home buyer must be completed during the construction phase. A project manager oversees this setup, including managing and scheduling subcontractors and workers, and overseeing work in progress. 
3. Project monitoring. As construction continues, it’s also a project manager’s job to review work being done, make adjustments to the plan’s timeline and manage any scope changes as they happen. A primary part of this step is communicating everything they learn to the people who need to know. 

What does a project manager do during the post-construction phase?

1. Project closeout. As construction finishes, a project manager is responsible for managing punch lists, moving equipment and supplies, and securing payment or receipt of outstanding bills and invoices.
2. Project evaluation. A project manager is also in charge of getting the right people to evaluate and inspect the property. Once quality and occupancy certificates are given, it’s the manager’s responsibility to transfer all necessary paperwork – warranties, for example – to the home buyer. 
3. Project reporting. The last phase of the process is a comprehensive project review. Using data collected in a project management software, a project manager evaluates the entire project based on client satisfaction, supplier relationships, estimated-to-actual budgets and overall profitability. 

What are the best tools for construction project management?

The best tools for construction project management are those that centralize planning, communication and financial tracking in one place. This typically includes scheduling software, daily logs, budgeting and WIP reporting tools, change order management and mobile apps that keep teams connected in real time.

• Project planning tools: Streamline pre-construction by combining estimating, budgeting, bids and document management in one place, while keeping communication with clients and subcontractors organized.
• Daily logs: Track day-to-day progress with notes, photos and updates that can be easily shared with internal teams and stakeholders.
• Work in progress reports: Provide a high-level view of project performance, including completion percentage, costs, billing and overall profitability.
• Change order management: Simplify updates to scope and budget with tools that document changes and sync them across schedules, tasks and financials.
• Scheduling tools: Build and manage timelines with templates and task dependencies to keep projects moving efficiently and prevent delays or rework.
• Mobile tools: Keep teams connected across the office and job site with real-time access to schedules, reports, communication and time tracking from anywhere.

What are construction management best practices?

Construction management best practices focus on improving efficiency, communication and profitability across every phase of a project. This includes clear planning, consistent communication, real-time tracking of progress and costs, standardized processes and using technology to keep teams aligned and projects on schedule.

1. Take the time to be accurate

Mistakes made during the pre-construction phase are one of the biggest causes of change orders. Errors in design, estimating and supply orders can mean costly fixes during actual construction. 

Take your time to ensure accuracy in these steps, even when working under tight deadlines. When scheduling the entire project, aim for a realistic timeline, factoring in any other projects that your construction company may be responsible for at the same time. 

2. Communicate effectively with your team

When managing so many relationships during a construction timeline, it’s impossible to over communicate. 

Communication helps reduce confusion and establishes a record of decisions made. It helps builders manage from afar, stay on top of progress and pivot directions fast when action is needed. 

3. Keep your clients in the loop

Just as with your team, you can never over communicate with a client. 

Establish regular checkpoints with your client to proactively manage requests and concerns before they become costly issues. Monitor client satisfaction throughout the process to reduce closeout delay during post-construction. 

Between regular check ins, make sure you’re making information available to home buyers through a customer portal. This way, they can access information on their own whenever they need it and you can stay focused on project tasks. 

4. Compare estimates to actuals 

The last thing you want is to finish a project and then discover your project went way over budget. 

It’s rare that a project will ever finish as a 100% match against an estimated budget. Still, with frequent comparisons, you can monitor which cost codes are running over – or under – and either make adjustments or secure change orders to get the ledgers back in the black. 

5. Report often 

By completing periodic reports throughout a project’s build, project managers can reduce the risk of project delays during post-construction activities. 

Reporting frequently, even if only reviewing those reports yourself, can also provide clear information on where a project is in relation to completion, what steps are holding up the process and how you might be able to fix them. 

6. Stay organized

There’s no shortage of responsibilities on a project manager’s plate. Having a set process for organization ensures ad hoc requests and off-the-cuff information are accounted for. 

Once you have an organizational system in place, stick to it. If you regard your plan, timeline, communication methods and budget as your source of truth, others will, too. From there, you’ll be able to complete bigger and more complex builds, knowing the project management system you’ve established is reliable and trustworthy.  

How does Buildertrend’s construction project management software help manage projects better than other solutions?

If your current project management processes feel fragmented, manual or difficult to scale, it may be time for a more streamlined approach.

Buildertrend’s construction project management software is designed to help established builders run more efficient, profitable projects. From daily logs and scheduling to change orders, reporting and client communication, everything is connected in one place – so you can stay in control without adding complexity.

Ready to simplify your workflows and improve your margins? Schedule a demo to see Buildertrend in action.