Paper Example on Construction Industry and its Management

Project Management

The project manager is an individual accountable for delivering the entire construction project process. He manages and leads different members of a project team, with responsibility and authority from the main stakeholders or financiers of the construction process. His key contribution to the construction process is to design and apply the right project management principles according to the rule of the land or construction Act. He also contributes by supervising the operations needed in processes to ensure that the construction project deliverables are achieved. Project manager additional contributions are managing risks associated with the construction process, monitoring the whole procedure by using appropriate resources to initiate corrective actions when needed.

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Construction projects have unique features which require project managers to have distinct skills to perform successfully. Communication skills are among the key competencies which they should have. These skills are fundamental to construction process hence it is essential that they comprehend that without them, experienced workers may not act to the best of the capabilities. The progress of the constructed project may also be interfered or deviate due to poor communication competencies. Furthermore, project managers should have ability to delegate activities to various workers. Construction scheme is not an individual activity thus project managers should have the ability to direct workers to do different tasks throughout the entire project. Additionally, problem-solving skills are another competencies required to be a construction manager. This is because every scheme drags distinct problems, obstacles, and challenges which are hidden in the background and require to be solved before significant damage can be caused to the entire construction project. Successful solving these issues makes a project adapt and develop as planned in the project strategy.

There are various documents available to assists project managers in conducting construction monitoring. The project schedule is a major document they utilize to monitor the actual progress of the scheme. These include project costs, resources, and dependencies and assessing whether they are in line the project schedule. Additionally, risk management document is employed essentially for monitoring possible risks involved in the project progress. Also, project budget is a crucial document available to monitor and evaluate the budget of the project by permitting project managers to track every expense linked to the construction process.

Key Performance Indicators

Key performance indicators (KPI) is among the measures which have been recommended by the Egan report. It describes factors which an organisation requires to monitor and benchmark through its evaluation methods which offer a device for measuring and assessing the demarcated factors to appraise effect or progress. KPIs stipulate the evaluation techniques and what is measured by detailing the manner and when this process is undertaken. KPI is additionally a measure undertaken utilised to describe and assess the level of prosperity of projects and organisations which is express with respect to their long-term objectives. It involves information particularly on definitions, calculations, and sources of every measure and sets out the timeline for monthly data submission. The implemented KPI helps projects track its progress and define whether it is performing towards attaining a significant result of improvement.

Project managers in construction industries are the key individual for its success unlike in other industries which rely on efforts of sales, production, and human resource managers. Additionally, construction industries involve activities which are undertaken at a permanent geographical site which need careful supervision at all the logistical difficulties involved. Unlike other industries which are mainly affected by economic forces, the construction industry is primarily affected by the weather by establishing different uncertainties in the projects. Furthermore, the majority of the construction industry output are long-lasting, for instance, roads and buildings. It also requires intensive labour than the majority of other industries which must be both competent and incompetent.

Egan (1988), in his report, identified various principles which comprised respect for people, integrated teams in the entire delivery chain, and customer leadership as fundamental to attain radical developments in sustainability, client satisfaction, quality and design. This area may have been selected to increase the productivity in the construction industry as well as minimising expenses. They were also selected because they could position strong stress on improving the value of construction projects. These areas are some of the appropriate sectors to introduce change since they constitute almost every part of the project.

Project Procurement Arrangements

Project procurement arrangements are intended for satisfactory execution, quick transfer of resources through disbursements as well as attaining efficiency and economy in a project. These ensure that a project is completed as fast as possible but only when the most appropriate procurement method is chosen. The best type of procurement a client should choose is design and build. This is a form of procurement where the contractor must strategise and develop. The clients offer a set of needs while the contractor gives the specs and strategies of how the requirements will be attained. It is a quick approach since it involves two parties unlike in general contracting which encompasses more than three individuals. However, design and build have a major drawback. Since it is fast, contractors are faced with interests of reducing expenses which may compromise quality and quantity of resources as they attempt to make profits.

On the other hand, time is a crucial factor from the initiation to project implementation and completion. Where time is a critical factor, design and build technique may be appropriate for customers requiring a rapid return on investment. Management contracting may be conducive for a private individual who needs to minimise project period to reduce interruption of the current operating facilities. The traditional technique may be suitable for those requiring control of the laid construction project overall time.

The complexity of a project is another factor which may be evaluated. It may be defined with respect to resources, contractors, and visible services involved in a project. Thus, complexity level identifies the procurement arrangement to utilise. Traditional techniques are appropriate for moderately complex schemes since a single phase will have diverse expertise. Additionally, management contracting approach is suited for most complex schemes due to better management team involved which ensure it is accomplished on time. Design and build technique is fitted for moderately complex and simple schemes since a single individual performs activities.

Project Cost

Project managers should first examine project cost. Every project drags a limited budget which the client is willing and able to avail a particular amount of finances to ensure the project is implemented to offer the new commodities. Where project managers reduce when developing the strategy, they may have increased time consumed or decrease the project scope. Project managers should also observe schedule or time. This is because projects have a start and end. Where they decrease project time, they may diminish its scope or upsurge costs involved in its implementation. Additionally, they should examine project scope. Project managers should avoid failing on this aspect when developing project strategy because they do not comprehend it or it is not wholly described. If they increase it, they may escalate either time or cost involved in the project implementation. Therefore, all these aspects of the project are crucial and should be considered keenly when project managers are developing project plans.

There are different ways that project managers should asses the success of a project. This is possible to assess different items such as project schedule. The prosperity of a project is defined by whether it is completed as stipulated in the original strategy. Project managers should observe their core milestones and check whether they fall under similar dates as initially stipulated. Where there is any slippage, it should be worked out as well as the degree of its effect on the entire project timescales. Examining project quality at the ultimate phase of the project is the best way to assess the success of a project. This is possible through conducting a quality review to assess if the project is meeting the values and standards established in the quality plan. Assessing stakeholders' satisfaction enables project managers to know how these individuals feel regarding the project and what could be performed to distinctively. This enables project managers to make a subjective judgement on whether the project is successful or not.