The Importance of Construction Project Management
Project management isn’t a simple task – and it becomes even more complicated when there are dozens of firms involved in the construction process and two state governments.
Those looking for an example of the costs of poor construction management need look no further than the newly constructed World Trade Center One in New York City; and the adjoining PATH station which thousands of commuters rely on to commute to the Financial District every day.
Finding success in construction project management depends on how well you are able to control processes, activities, and the events that occur in the course of a project.
How Poor Construction Project Management Affected the Building of the New World Trade Center
The World Trade Center PATH station originally had a price tag of $2 billion and was slated to be completed in early 2013. However, due to issues in the supply chain from steel providers, a lack of communication between government agencies and developers, no use of best of breed project controls, and not adhering to construction deadlines; the PATH station at World Trade Center is now slated for an opening of early 2014 at a cost of $4 billion.
For the same money, New York City and the state of New Jersey could have built additional commuter rail lines, increased capacity along the new Second Avenue subway; and improved roadways. Most cities could build an entire rail line at that cost.
Preventing Your Project from Getting Derailed
Most firms don’t have the flexibility to change budgets and timelines the way that the states of New York and New Jersey have the ability to. Cost overruns, missed deadlines and lack of planning by construction firms mean the loss of critical business revenue and the loss of their customers’ and shareholders’ trust.
Employing effective construction project management solutions is critical to ensure that deliverables are completed in a timely manner and projects are ultimately successful.
At Innovative Management Solutions, we provide project management consulting to a variety of construction and public administration firms, ranging from governments to home builders. We understand that poor project management and lack of best of breed project controls leads to cost overruns, project delays, and ultimately harm to your business.
In order for project management to be effective, project information must be accessible across the enterprise and available to different firms, particularly if taking on a project spanning both public and private contractors and across state lines. Project management training should be provided to all members of the firms working on a project, to ensure that they understand the importance of project management and are able to utilize tools such as construction project management software. Firms that consistently find themselves behind on projects should also look into the use of best of breed project controls.
By making this knowledge, and these tools, available to all members who are associated with the project; firms can minimize the risk of projects getting derailed – which minimizes their risk, maximizes their efficiencies and profitability, and sets their organization apart from their competitors.
Don’t let your most critical projects go off the rails – contact IMS to learn more about our project management solutions for construction businesses and government agencies.
What tactics does your firm use to keep project management on track?
Comment below and let us know!