Cristy Cristobal–Articles–

Best practice in construction project management plays a critical role in delivering projects on time, on budget and with controlled risks from start to finish.

Table of Contents

Introduction

Applying the best practice in construction project management is essential to delivering projects on time, within budget and with the right level of quality—while effectively managing risks. But what exactly does this mean in today’s construction environment?

Construction Project Management (CPM) is key to delivering projects on time, on budget, with the right quality and with all risks controlled. So, to start with, what is CPM?

CPM is the strategic planning, coordination and execution of construction projects from start to finish. Effective project management is key for the timely delivery of high-quality work within budget, whether the job is a small-scale commercial renovation or a large-scale infrastructure project. 

As a project manager, you may be faced with increased pressure to reduce costs, improve delivery times and meet sustainability goals. Therefore, you should be familiar with modern methodologies, best practices and helpful strategies. 

This guide provides you with all you need to know about modern construction project management, including roles, phases, systems and new approaches such as Lean Construction.

What is Construction Project Management?

As a project manager, you are responsible for containing and meeting the expectations of all stakeholders to ensure that the project comes to successful completion for all involved. This could include managing expectations and working with contractors, employees and the owners.

You need a combination of construction knowledge and business management skills as a construction project manager.

As a construction project manager, you will drive the project through its entire lifecycle. This includes tasks such as planning, coordination and execution of the project in a manner that achieves objectives and ensures time and costs are managed wisely and that quality and safety are upheld.

You would also need to ensure that the administrative side of these tasks is completed with integrity. The overseeing of equipment and materials, monitoring subcontractors, ensuring regulatory compliance and coping with unforeseen risks are all areas that you will be expected to maintain and competently work with.

It is important to remember that CPM is not a one-size-fits-all process. Elements such as project scale, sector (residential, commercial, infrastructure) and geographic location will affect how the project is managed. Therefore, understanding local codes, market trends and community needs is also part of effective construction project management.

Common Phases of Construction Project Management

Understanding the phases that make up the lifecycle of a project is important for a project manager because they need to be able to see the full project’s trajectory from the beginning.
Keeping in mind that these phases may shift due to the specific nature of a project, however, these five phases are generally in the standard lifecycle for a construction project.

1. Initiation

The initiation phase begins the lifecycle by ensuring that the project is viable. This includes investigating whether timelines, client expectations, budget and workforce can align with each other.
Some of the tasks or tools that you, as a project manager, would need to consider are:
Feasibility studies - this comprehensive assessment will enable you to determine the viability of the project.

  • Project objectives - exploring all stakeholders’ objectives will ensure a cohesive goal and plan for the project.
  • Site selection and assessment - you will need to engage with the site itself and determine its suitability and any limitations.
  • Preliminary budget and timeline - drawing up the preliminary budget and timeline to discuss with the stakeholders.
  • Stakeholder identification - you would need a clear idea of who all of the stakeholders are to ensure that everyone’s view is incorporated at this vital stage.

2. Planning

When looking at the planning phase, the first task is usually creating a detailed work breakdown structure (WBS). This structure maps out the tasks, deliverables and what needs to be gained for the project to begin. You would need to include quality benchmarks, communication plans, safety protocols and the end project delivery method. 

Think of the following elements when creating the WBS:

  • Project management plan development - this should be a cohesive document or map to help align all the different elements.
  • Resource allocation - understanding where the available resources could be allocated for the most efficient use of them.
  • Permits and approvals - ensuring you know which permits and approvals you will need is vital to the health of the project. Make sure that you have these listed and understand how to obtain them.
  • Risk assessment - exploring the risks involved will help you, as the project manager, to determine strategies to minimize these risks, as well as begin to understand what the possible risks may be. 

For example, you may need to consider rain as a risk factor. On certain sites, you are not allowed to work when it is raining. This could add to the length of time you spend on the project.

  • Schedule creation (Gantt charts, critical path) - ensuring that there is a clear schedule with contingency plans that everyone can follow will help the team work towards the same timeline as you. Think about using charts and tables to outline tasks and deadlines.
  • Procurement strategy - now that you know what you will need in terms of materials, equipment, manpower and permits, you will need to determine how you will be able to gather them together. This may involve reaching out to different networks, contractors, etc.

3. Execution

You can begin the execution phase once you have all the planning in place. This means you have your resources, your workforce,and your permits and you have been given the ‘all-clear’ to begin working on site. This phase will often show you how well the planning phase has been completed because you are now coordinating all of the moving parts to ensure that the deadlines are met with quality work, within budget. 

Some of the tasks you will be faced with in this phase are:

  • Procurement and subcontracting - lining up the workforce and resources needed must be streamlined. As one team finishes, the next needs to be able to move in.

Grant is beginning a project and requires subcontractors such as structural, civil, electrical, plumbing, etc. He will investigate which subcontractors meet his needs with regard to qualifications, certifications and budget. He would also need to arrange the timeline as to which subcontractor will be on site at which point. This can be done using the planning Gantt chart.

  • On-site supervision - you will need to be engaged on the ground to ensure that the project is moving along smoothly. You can problem-solve, pivot and make necessary changes with increased accuracy when you are on-site.
  • Communication and coordination among stakeholders - you are the central connection for communication on the project. It may be helpful to determine a communication log to keep track of who has been communicated with, for what reason, when this communication happened and any resulting actions that need to be taken.
  • Quality control and safety management - your inspections need to include elements of quality control and safety management. If you notice that something is not up to code, then you will need to address this.
  • Tracking against the planned schedule and budget - being onsite will help you understand in practical terms whether you are following the budget and timeline you created in the planning phase. It will also give you the opportunity to make adjustments where necessary.

4. Monitoring and Controlling

The monitoring and controlling phase runs in conjunction with the execution phase. This ensures timely decisions, tracking, adjustments and management of the job at this stage of the lifecycle. Some of the areas you will need to monitor are:

  • Performance tracking (time, cost, scope) - you can use a variety of graphs or software to ensure that you are tracking the array of elements through these phases. If you are tracking in real time, then you will pick up discrepancies quickly and find a way to resolve any problems before they become significant and costly.
  • Quality audits and inspections - as the project goes, you will ensure that there are inspections throughout each section and job.

While the installations are being done, there will usually be a week-by-week inspection. During one of these inspections, the construction project manager, Brad, will accompany the engineer, contractors and client (usually all involved parties are included) on a site inspection. Each party will analyse the installation and progress that they are responsible for. Brad takes down any issues and creates a ‘snag list’. This list will help him make changes to the project to ensure it is following the plan and the quality is upheld.

  • Change management procedures - if you find that a management procedure is not efficient or beneficial, it will be your responsibility to communicate with the relevant stakeholders and make a change.
  • Issue resolution - diplomacy may be a vital tool in your toolbox, as you will be involved with conflict resolution if something is not moving according to plan.
  • Continuous risk reassessment - ensuring that all possible risks are minimized and the best response to risks that materialize is a crucial part of this position.
  • Earned value management (EVM) - using an EVM methodology helps you compare schedules, costs and time frames to ensure productivity is maintained in an optimal manner. 

Brad also uses the formulas from the EVM methodology to create a tracking of the planned schedule, budget and value of the work. He uses a graph to track this. When Brad uses these formulae, he is able to note where the project currently is and where it is projected to go.

5. Closing

The closing phase of a project should not be hurried or dismissed. It has a key value for ensuring client satisfaction and identifying opportunities for future improvement. This is how you will grow as a construction project manager and develop your own methods and plans of action.

You should consider the following elements during this part of the project’s lifecycle:

  • Final inspections - once the work has been completed, the final commissioning or inspections need to be done to ensure the project has been completed accurately.
  • Handover to the client - the handover of the documents and site to the client would involve you. You would need to provide feedback to the client and answer any questions about the process and final product.
  • Completion certificates and documentation - documentation is key - both in acquiring any final certificates and in documenting the finalization of the project within the parameters and codes that were stipulated in the planning phase.

As the project manager, Jose would need to ensure that all commissioning, electrical and equipment certificates are achieved and are up to date. These need to be documented to prove that the job has been completed accurately by qualified contractors.

  • Lessons learned and project review - this is also a good opportunity to review the project and look for areas that you can grow, what went well and gain a holistic understanding of the lifecycle of the project.

Key Roles in Construction Project Management

Each of these roles contributes to successfully applying the best practice in construction project management throughout the project lifecycle.You will find that working within the field of CPM, you will need to ensure clear communication between all professionals and stakeholders. These are some of the professionals you may encounter: 

  • Construction Project Manager - oversees the project through its life cycle.
  • Construction Manager - works with on-site operations and contractors.
  • Site Manager - oversees daily construction activities.
  • Quantity Surveyor - manages costs and contractors; they may work with a Contract Administrator.
  • Health and Safety Officer - ensures all protocol is followed for full safety.
  • Procurement Manager - manages the supplier relationships and material logistics.
  • Design Consultants - engineering, architectural and technical input.
  • BIM Coordinator - handles digital design and clash detection.
  • The Client - who provides funding and project direction.

Common Challenges in Construction Project Management

Using the best practice in construction project management helps minimize miscommunication, delays and budget overruns.

As many experienced project managers will tell you, even the best plans can go awry. Understanding these challenges will help you in anticipating them and problem-solving.

 Some of these challenges could be: 

  • Schedule delays - caused by poor coordination or unforeseen issues on site.
  • Budget overruns - caused by unexpected scope changes or material cost increases.
  • Miscommunication - between stakeholders or contractors.
  • Regulatory compliance - delays or difficulty with required permits.
  • Safety incidents- any incident that occurs will impact productivity, as it is a liability.
  • Labour shortages - this could be a shortage of workforce, or the necessary skills to complete a task.
  • Material supply chain disruptions - these can be unexpected and result in lengthy delays.
  • Environmental and weather-related setbacks - each site will have different protocols for working in a variety of weather, including pausing work when it is unsafe.
  • Stakeholder conflicts - this is usually over scope, design, or budget.

Solutions such as contingency plans, time buffers and clear communication allow a construction project manager to prepare for these challenges in the most effective way possible. When faced with a challenge, you should support the solution with real-time data and clear communication channels.

Henry is an experienced project manager. He was faced with a situation where there was a drawing that did not match the actual installation. Henry overcame this challenge by visiting the site and taking new measurements to update and create new drawings. He would need to collaborate with a draftsman and/or engineer to complete this. 

There are many types of unforeseen challenges that a project manager will need to be adaptable and think laterally to solve.

Best Practices in Construction Project Management

A successful construction project manager has a mixture of traditional and modern approaches, strategies and practices that can be adapted to the project’s requirements.

One widely recognized best practice in construction project management is regular risk reassessment throughout all phases of the build.

Here are some tried and tested techniques that have been beneficial to project managers for many years: 

  • Detailed Planning Early On

Ensuring your initial planning is well-researched and detailed can help ensure minimal challenges as the project unfolds. 

  • Transparent Communication

Having a communication matrix or organogram can set up a procedure for all communications. Many project managers have found that establishing regular reporting during a site meeting, supported by a shared communication platform, is a winning combination. 

  • Integrated Scheduling Tools

Use visual tools like Gantt charts and critical path models to align work sequences and prevent bottlenecks. These tools also help identify project float and non-critical tasks.

  • Change Control Processes

A formal process for change requests should be in place to help reduce communication errors, protect budget integrity and ensure the correct parties sign off on elements of the process at the correct time. 

  • Document Everything

Documentation is another best practice in construction project management, helping ensure transparency, legal safety and team alignment.

  • Collaborate Early with Contractors

During your planning phase, you should work with your contractors to determine the process, equipment, resources, etc. This communication increases constructability and efficiency while diminishing clashes during the execution phase.

Steve only communicated with his contractors once the execution phase began. The project ran into a challenge with one of the pieces of equipment not being correct. This led to a time delay and extra cost to rectify it and continue with the project. If Steve had communicated with his contractors ahead of time, this would most likely have been avoided. 

  • Regular Risk Assessments

Managing regular risk assessments throughout the project’s lifecycle decreases the chances of minor issues developing into large challenges. 

Donald faces a difficulty as his project has run over budget. If he had done regular risk assessments, this would have been identified sooner and adjustments to the budget or the plan would have been made to ensure all parties were informed of the new way forward.

  • Use of Checklists and Standard Operating Procedures (SOPs)

You can create a sense of consistency across all parties by creating a standard operating procedure (SOP) and a series of checklists. This can help with onboarding, project management, prioritising tasks and keeping a track record of work done. 

  • Build Strong Relationships

Like many jobs that involve people, construction is often about collaboration and teamwork. Therefore, diplomacy and good people skills are valuable for a project manager to ensure good relationships between the different parties. This can also help with team morale and camaraderie. 

  • Post-Project Reviews

Once a project is complete, the project manager still has another task ahead. They will need to conduct a formal review to assess the strengths and weaknesses of the project. 

Justin, as project manager, conducted a post-project review and discovered that his team showed strengths in timely work, with high safety compliance and good contractor collaboration. He also discovered that there were areas of weakness with communication with the client and budgeting. This review enabled him to make adjustments to his approach for his next project to ensure that it was enhanced.

Common Project Delivery Models

Selecting the right delivery model supports the application of the best practice in construction project management, particularly in aligning teams and responsibilities.

An experienced project manager knows that construction project management isn’t a one-size-fits-all process. Each process is shaped by the delivery model utilized. This model will inform how risks, relationships and responsibilities are structured.

Understanding the intricacies of these delivery models will take some research and experience. However, take a more in-depth look at them with our article, Project Delivery Models in Construction. 

Here are some of the more commonly used delivery methods: 

  • Design-Bid-Build (DBB)
    • The DBB model is the most traditional method, frequently used. A good project manager should be familiar with this method, which involves the design being created by the architects first, then the tender is issued and then a contractor is appointed.
    • There are varied advantages to this, including process simplicity and fixed pricing.
    • A difficulty with this method is that there is limited contractor input during the design phase, which may mean drawings needing to be redone or adjusted throughout the process.
  • Design and Construct (D&C)
    • With a D&C, one contractor will be responsible for the design and the build. This means that there is one overseeing entity responsible for all elements of the project.
    • The advantages here are the fact that there is a single point of contact, which usually means a faster delivery.
    • Since the project is overseen by one contractor, there is a risk of quality being lower due to less competition.
  • Construction Management (CM)
    • When CM is used, the client will hire a contractor to manage the project. This contractor will be the project manager and liaise with all the subcontractors.
    • The advantages of this approach are flexibility and early contractor input, as a contractor is involved right from the start.
    • A possible disadvantage is the risk that the client takes in choosing a project manager, which involves a lot of trust. 
  • Integrated Project Delivery (IPD)
    • With IPD, you have all the contractors colLabourating on the project throughout its lifecycle.
    • This means everyone’s goals are aligned and the input from each contractor is valid in each phase, which is an advantage for a project.
    • However, without good leadership and collaboration techniques, the adage “too many cooks spoil the broth” can become a reality.

Exploring and deciding on the best delivery method will depend on the specific project. Elements such as timeline, budget certainty, client experience and the complexity of the project will all factor into this choice.

Tools & Systems for Construction Project Management

Recently, there has been a surge in tech applications and programs that can boost efficiency and optimize productivity for construction project management. Exploring the article, Top Construction Management Tools and Systems for 2025, will help you gain a deeper understanding of why these advancements should be included in your toolbox.

A project manager will choose the relevant tools and systems to match project size and complexity, as well as team maturity.

The right software tools can help enforce the best practice in construction project management by streamlining planning, communication and compliance.

Here are a few applications and programs you might want to consider:

Project Scheduling & Planning

    • Microsoft Project
    • Primavera P6
    • Smartsheet

Site Management & collaboration

    • Procore
    • Buildertrend
    • Autodesk Construction Cloud

Document Control & Reporting

    • Aconex
    • Bluebeam
    • PlanGrid

Financials & Cost Tracking

    • Xero Projects
    • Jonas Construction
    • CoConstruct

Field Productivity Monitoring

    • Raken
    • Fieldwire
    • eSUB

Health & Safety Compliance

    • HammerTech
    • SiteDocs

Modern Approaches to Construction Project Management

Lean Construction is a modern method aligned with the best practice in construction project management, focusing on minimizing waste and maximising value.

These are a few modern approaches that are gaining traction: 

  • Lean Construction

Lean construction focuses on maximizing value and minimizing waste throughout the project lifecycle. Focuses on maximizing value and minimizing waste. Emphasizes collaborative planning, continuous improvement and just-in-time workflows.

  • Agile-Inspired Construction Management

Agile principles of iterative planning and daily stand-up reviews ensure real-time data that can be adapted to, therefore, making the process proactive and assertive.

  • Digital Twin & BIM Integration

Building Information Modeling (BIM) and its big brother, Digital Twin, look at using 3D modeling and real-time data to map out the site. This can detect clashes, predict trajectory and provide the ultimate view of the project as a whole for a project manager.

  • More Data-Driven Decision Making

Having real-time data from IoT sensors, drones and analytic platforms, a project manager is able to make decisions based on fact and not just subjective information. This can increase the accuracy of decisions, minimizing delays and uncertainty. 

  • Sustainable Project Management

Modern PMs must also consider the environmental impact of construction activities. This includes material selection, energy efficiency, lifecycle costing and waste reduction. To run an eco-friendly site and project is a modern approach that increases sustainability.

Summary & Next Steps

Construction Project Management is a dynamic process balancing data and people, which can become quite the chess game. However, by choosing the right methodologies, the delivery method and the tools, programs and applications you use, you can ensure that no matter what project you are working on will be a success. 

It is an exciting time in the industry, as the move towards collaboration and data-driven processes is on the rise; you can adjust your project management toolbox and increase your ability as a project manager. 

To learn more:

    • Explore our guide on Lean project management: Lean Project Management in Construction: How to Run Lean Projects Successfully.
    • Download our construction project planning checklist.
    • Contact us to discuss how our consulting team can support your next project

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