Project management is an increasingly important part of construction. Project managers are responsible for ensuring that everyone has what they need to complete the tasks necessary to execute a construction project. It is a big task which comes with challenges. Special techniques, skills, and knowledge are needed. However well-trained a project manager, there are some unavoidable challenges in construction project management, and knowing how to deal with them is a crucial aspect of risk management and preventing future claims.
One of the biggest challenges in construction project management is undefined goals. Sometimes stakeholders don’t know exactly what they want, other times they can’t agree. However, when the goals aren’t clear to a project manager, it’s difficult to properly deliver. Project managers can help prevent this by asking direct questions and continuing to communicate questions throughout the project. When stakeholders do not have a clear objective, the construction project manager should step in and put the project back on track. Asking clear questions, clarifying vague points, and suggesting particular actions will be needed to move the project forward.
Another one of the biggest challenges in construction project management is changing the scope, which may arise from a lack of defined goals and can be a huge reason why projects end up delayed or over budget. A good project manager should communicate concerns to scope changes to the stakeholders. Thereby informing them of all the changes to schedule and budget it will cause. Clarify the scope of services including who is responsible for a particular aspect of the project, what fee is chargeable, and what services are within the approved fee. Use a schedule of services to set out the scope of services a contractor or consultant will perform for the project.
The project manager is responsible for laying out the goals of the project and assigning them. Ensure that all goals are assigned to the right person or team and that all parties are held accountable for their tasks.
Lack of Risk Management
Risk management is important in construction as the risks are greater and far more expensive than ever. The project manager is responsible for identifying potential issues and determining how to mitigate them. Gather input and plan ways to prevent the project from veering off course otherwise the project will go over budget or be delayed.
A lack of communication or poor communication can quickly kill a project. It’s important to always offer updates on project status and feedback since project managers are responsible for updating their teams as to the requirements of the stakeholders and upper management. Foster open communication or risk falling to communication challenges.
Sometimes stakeholders have unrealistic expectations. Whether it’s from impossible deadlines or a lack of resources. Unrealistic expectations create challenges since they can hurt morale and productivity. With impossible deadlines looming or a lack of resources, teams sometimes become less productive. In some cases they won’t make the deadline regardless of their high productivity, emphasizing the need for construction insurance. It’s crucial to encourage workers, flight against unrealistic expectations and set realistic ones.
Proper risk management and loss control can do wonders to reduce the frequency and severity of claims, but there’s no way to completely prevent problems altogether. In a physically demanding and potentially hazardous field like construction, having a specialized insurance program is the key to minimizing risk exposures and financial loss. At Haughn & Associates, we offer a Construction Insurance program designed for this sector’s unique risks. Contact us today to learn more!
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.