Construction project management is a complex and multifaceted field that involves planning, coordinating, and overseeing construction projects from inception to completion. Despite its critical role in ensuring project success, the field is rife with myths and misconceptions that can hinder effective decision-making and the adoption of advanced project management tools. Understanding and dispelling these myths is essential for improving project outcomes and leveraging the full potential of modern project management solutions. Amongst the innumerable misconceptions that exist, here are 10 major Myths and Misconceptions regarding Construction Project Management in detail:
1. “Construction Project Management is Optional”
Construction management has become evidently important in the current scenario where about more than one third of the construction projects worldwide end up failing or exceed timeline and cost of the project. According to a report by the Project Management Institute (PMI), projects with a high level of project management are 2.5 times more likely to meet their goals and be completed on time. The failure rate of projects can be reduced to 20% or below when robust project management processes are in place. In contrast, organizations that neglect these practices experience failure rates of 50% or more. Hence adopting these project management practices in turn helps in achieving a success rate of 92% by meeting the core objectives. In the construction industry, effective project management can significantly enhance these outcomes.
Skanska for example is one of the top construction companies in the US which is also the fifth largest in the world and has a history dating back to 1887. This is a company which is known for its financial stability and huge size. For a business like this, it is imperative to have efficient project management. The company has been constantly transforming by integrating various innovative digital tools to improve their process and meet all of its needs and objectives. Skanska being a massive company has massive needs and it leverages advanced tools ranging from data management softwares to AI (Artificial Intelligence) powered systems like Kyro for safety management, BIM (Building Information Modelling) for designing to drone programmes for construction on site monitoring and many such tools to focus on collaboration, stakeholder engagement, risk management and empowered decision making. The company's project management approach enabled them to stay within budget for a larger percentage of projects. In 2018, 60% of Skanska's projects were completed within budget and the company’s failure dropped to 20%. Skanska has been able to successfully navigate the complexities of large-scale projects, reinforcing its position as a leader in the global construction industry only by adapting and implementing a comprehensive project management approach.
2. “Strictly meeting project schedules guarantees project success”
The assertion that "strictly meeting project schedules guarantees project success in the construction industry" is indeed a myth. While adhering to schedules is important, it should not come at the expense of quality and doesn’t ensure the overall success of the project. A project can be completed on time but still fail to meet quality standards, leading to client dissatisfaction and potential rework. Prioritizing quality alongside timelines is essential for true project success.
Also construction projects often encounter unexpected challenges, such as weather delays, supply chain issues, or changes in client requirements. Rigidly adhering to a schedule without flexibility to adapt to these circumstances can lead to increased stress and project failure. Success in construction projects is multifaceted and also includes other factors such as budget adherence, safety and stakeholder satisfaction. Focusing exclusively on timelines can lead to neglecting these other critical aspects. Hence construction management tools and techniques that has a holistic approach in considering all of the above aspects leads to successful outcomes in construction projects.
3. “Change in the scope of project is detrimental to the construction process”
Traditionally, it is believed that preplanning a construction project and implementing it without any changes leads to the success of a project without any need for project management. But this is a very misleading assumption. Sometimes scope changes can provide opportunities for improvement and innovation.
For instance, incorporating new technologies or design elements can enhance the project's quality and functionality. Modern project management tools and methodologies such as Agile techniques play an important role in implementing robust change management processes that can mitigate the potential negative impacts of scope changes and emphasize adaptability and responsiveness to change.
4. “Best practices alone lead to best results in Construction Projects”
The misconception that following best practices alone guarantees the best results in construction projects overlooks the complexity and dynamic nature of construction management. Though best practices are tried and tested guidelines, they cannot blindly be applied to all projects as there may be context specific challenges. Each construction project has unique characteristics, including site conditions, client requirements, and regulatory constraints, which may require tailored approaches.
In addition to being aware of best practices, putting it into action is essential. Poor execution can undermine the benefits of even the most well-established best practices.
Also, best practices in construction are not static; they evolve over time based on technological advancements, industry trends, and lessons learned. While best practices provide valuable guidance, they cannot account for every possible scenario or challenge that may arise in a construction project.
Unforeseen circumstances, such as natural disasters, supply chain disruptions can significantly impact project outcomes despite the application of best practices and this can be combatted only with the application of modern construction management tools and methods.
5. Construction Project Management is expensive!
Investing in construction project management can yield significant financial results by improving efficiency, reducing costs and delays, minimizing and enhancing collaboration. Effective project management not only helps in controlling costs but also maximizes the return on investment (ROI) and contributes to the overall success of the project. Following are the ways in which Construction Project Management Softwares can significantly impact and improve your ROI.
Increase Efficiency: Construction management software like Sage Construction Management enables proper planning and scheduling of projects which helps in arriving at precise execution period. Companies that adopt these tools can experience a 20-30% reduction in project execution time, which translates to lower labour costs and faster project delivery increasing the overall efficiency.
Cost Savings: Effective project management can lead to substantial cost savings. For instance, automation of reporting and documentation reduces the time spent on manual tasks, which can save companies up to 15% in operational costs. Similarly increasing expenses on safety management will be covered by the savings from reduced number of accidents. With a higher safety investment, an average ROI of 200% can be generated from reduced number of construction accidents. This is an economic benefit derived from improved safety instead of direct monetary profits.
Improved Budget Adherence: Management softwares help accurate cost estimation and budgeting which avoid cost overruns. These tools also are used for budget tracking and management to control your budget. Companies using project management software report that 60% of their projects are completed within budget.
Enhanced Decision-Making: Real-time data analytics from project management tools allow for quicker and more informed decision-making. This capability helps identify issues early, reducing the risk of costly overruns and delays. Companies leveraging these insights can see an increase in project profitability by as much as 10-15%
It is assumed that construction project management is only for organizing construction details and the team involved, taking clients out of the equation. Ideally clients have an idea of the final outcome of a project. However they are not professionals and hence they are mostly not aware of the process and dynamics of a project. The management tools help in keeping track of the whole process starting from design to construction on site work until completion and enables communication amongst all stakeholders. This helps the client in understanding the process, possibility of certain outcomes and in setting realistic expectations of the project scope.
Many times, unavoidable changes are done on site due to site conditions or for better outcomes and it has to be communicated to the client. Hence regular updates and feedback loops help maintain transparency through the project. Client involvement ensures that the project aligns with the client's objectives, budget, and timeline. Research indicates that when clients actively participate in decision-making processes, it leads to better project outcomes, reduces the likelihood of disputes and mitigates risks. This helps in avoiding the costs incurred by rework due to miscommunication. Also good communication and collaboration can lead to repeat business and positive referrals, which are essential for long-term success in the construction industry.
The notion that small construction projects do not require project management is very prevalent in the industry. A project is categorized small predominantly based on its scale and budget but it is important that every project irrespective of its size succeeds within the planned budget and timeframe. Management tools and software play a crucial role in enhancing the efficiency, effectiveness, and success of such small construction projects. In fact investment in the right construction management software helps small and medium companies accelerate process and scale their business.
Let us consider a custom small residential construction that utilizes project management tools. The management software should consist of a comprehensive tool that addresses various facets of construction. Using software like Procore or Contractor Foreman, the project manager can create a detailed project plan that outlines all tasks, timelines, and milestones. Gantt charts can be employed to visualize the project schedule, ensuring that all tasks are assigned and deadlines are met. Tools like BuildOps allow for real-time tracking of costs related to materials, labour, and other expenses, helping to prevent budget overruns. It is indeed a challenge in a small scale project to efficiently allocate the limited resources and ensure the right amount of labour and materials are available at the right times. Software like Buildexact are simple yet powerful in addressing various challenges of small scale projects like preparing estimates in lesser time, addressing document management, progress tracking, communicating using built in tools to discuss, update and collaborate in real time especially for a small team where team members may be working on-site and need immediate access to information.
It is important to note that while there exists different types of softwares, picking the right fit based on the requirement of the project, the one that is cost effective and comprehensive, easy to use and flexible to adapt to your business needs is best suited for the business.
8. Project Management is a “Solo Venture”
One of the significant misconceptions about construction project management is that it is a solitary task carried out by a single individual. Project Managers are considered to be the walking encyclopaedia of the project who generally should know all the details of the project and can manage the entire project on their own.
But in reality Project managers need a team of people who bring their expertise and skills to the table, and their collective effort is crucial for achieving project goals. They rely heavily on the collaboration and contributions of their team members.
According to Project Management Institute(PMI), a medium scale project requires a team consisting of members from atleast 5-6 specialties which includes architects, engineers, quantity surveyors , quality control inspectors and health and safety officers. Similarly, research by the Construction Industry Institute(CII) has found that projects with integrated teams of specialists had a 30% higher success rate compared to projects managed by individuals attempting to oversee all functions. It is also equally important to employ a team of people while utilizing digital management tools in the respective fields since a project manager cannot manage the entire framework of a project. Project success or failure is a shared responsibility among all project participants, including the project manager, team members, stakeholders, and the organization. Each party has a specific role to play, and the project manager coordinates these roles to achieve the desired outcome.
9. “Construction Project management software needs expertise and cannot be used by everyone"
A construction project involves a range of people from architects, engineers, managers working in house to surveyors, supervisors and labourers on site. While some level of training is required, modern construction project management software and tools are designed to be user-friendly and accessible to a wide range of users, including those without extensive technical expertise.
Many construction project management software solutions today feature intuitive, drag-and-drop interfaces that are easy to navigate, even for non-technical users. The learning curve is relatively short, allowing users to quickly get up to speed on the software's features and functionalities. These software platforms provide guided workflows and step-by-step instructions to help users complete common tasks, such as creating schedules, managing budgets, and tracking progress. Software providers typically offer training resources, such as user manuals, video tutorials, and webinars, to help users get started with the software. Many also provide ongoing support through help desks, forums, and community groups, where users can ask questions and share best practices.
10. “Construction Project Management Is a One-Size-Fits-All Approach”
It is a common belief that project management practices are uniform across all construction projects. However, each project is unique, with its specific requirements, challenges, and goals and project management needs to be tailored to fit the specific needs, characteristics, and constraints of each project. Construction project management software often includes customizable templates for project plans, schedules, reports, and other documents. These templates provide a starting point for users and can be easily tailored to fit the specific needs of a project or organization. This reduces the time and effort required to set up new projects from scratch.
The composition and skills of project teams can also vary widely. A one-size-fits-all approach does not account for the diverse capabilities and experiences of team members. Project managers must tailor their management strategies to leverage the strengths of their teams, fostering collaboration and maximizing productivity.
Conclusion
By debunking these myths and misconceptions, construction professionals can adopt a more nuanced understanding of project management, recognizing it as a dynamic and collaborative process that requires flexibility, effective communication, and a focus on both people and processes. This shift in perspective can lead to more successful project completions, improved client satisfaction, and a more resilient construction industry overall.
