The bidding process is over and now it’s time for all the people involved in the project to make it happen. In general, every project has a standard life cycle, regardless of its special characteristics. This structure could be outlined in four basic stages:
- Project initiation
During the first phase, the objective and the feasibility of the project are determined. This is a crucial stage of the whole process since it can indicate whether this project is a good opportunity or not. If necessary, a feasibility study is conducted and based on its results a recommended solution/plan is issued.
Once everything is decided, a project initiation document (PID) is created. The project initiation document provides the groundwork for the construction plan and is one of the most vital artefacts in project management.
The Legal Aspect of a Construction Project
A construction project consists of many different details. One of the most vital that no project manager should overlook has to do with its legal parameters. A well-prepared construction project manager should always be in a position to offer answers to potential legal disputes or risks that may emerge.
In that way, the whole project is secured and built on strong foundations. In general, there are five main areas that should be taken into consideration:
- The parties: This category refers to anyone who is involved in the construction project (contractors, consultants, sub-contractors, purchasers, etc.)
- Contracts: Even though there are certain fixed contract forms for construction projects, many times there is a need for changes in the agreements so legal advice is more than necessary.
- Legislation & Regulation: A solid legal team can make sure that all the different legislations and regulations are followed properly.
- Procurement: The procurement process refers to the purchase of all the different materials and services that are necessary for a construction project. It is crucial, then, that the whole project is thoroughly regulated from a legal aspect.
- Insurance: It’s no secret that there are plenty of physical dangers on a construction site. That’s why a project manager should have been informed and taken care of every little detail concerning the insurance agreements
Putting a construction project together is a really challenging effort. There is a plethora of parameters and elements that should be exhaustively analyzed. That’s why it’s crucial to trust the management of your project to a construction management software that will make your life easier and that at the same time will give you the opportunity to take your construction plan to a whole new level.
Construction projects demands a very strictly understanding on Budget
Defining the budget is by far one of the most fundamental parameters that should be taken into consideration when you start putting together a construction project. The estimation of the cost can be a quite challenging task but if done correctly it can be one of the keys to success. As a rule, there are four basic parameters that a project manager should keep in mind:
- Analysis of the project: The first action that has to be taken is the clarification of the different objectives and limitations for the upcoming project. Once you do that, you can have a better idea of what you want to achieve and who exactly do you need in order to do it.
- Estimation of the budget: After having put all the priorities of your project in order, it’s time to organize your budget in conjunction with a solid timeline. Now it’s also a good time to ask for bids from interested contractors.
- Monitoring of the cost: As soon as the construction project is put to work, it’s very essential to start keeping an eye on project costs. The sooner you start doing this the better since it will allow you to detect any potential misuse of resources before it’s too late.
- Accounting: Having a highly competent accounting department is vital. In collaboration with the project team, they will be responsible for keeping all the financial agreements running according to plan.
