Efficient management is critical to the success of a construction project. In this article, we will look at strategies for reducing construction time, reducing costs, and improving quality, with a focus on process management and cost management.
Architecture is broadly divided into four areas: design, structure, construction, and environment. The work of each area is to design buildings beautifully, verify that the buildings are safe, construct them efficiently, and install the necessary facilities in the buildings. When these four areas are in harmony, a well-balanced building can be constructed. Meanwhile, the owner who commissions the construction of such a building must constantly monitor whether satisfactory results have been achieved in each area. To this end, there is a field that has recently emerged as important in the construction business. It is Construction Management (CM).
Construction management is the systematic and professional management of all processes of a construction project (from design to construction, maintenance and repair) by a group of experts with excellent knowledge and skills in the construction field on behalf of a client who lacks construction experience. In order to manage the construction business, he combined the theories and techniques of business management with the construction field. As a result, construction management is being recognized for its value not only in industrial sites but also in academia, and the scope of research is growing worldwide. This field is expected to grow in overall size in line with the need for efficient construction in industrial sites. In this article, we will look at process management and cost management, which are the main topics among the various fields of construction management.
Process management is the process of achieving the maximum management effect by planning and operating the basic resources (materials, equipment, labor, costs, and construction methods) of construction in the most efficient way. Construction work is carried out on the basis of a contract through bidding, and the main goal of process management is to operate efficiently in terms of cost and quality, while reducing the construction time specified in the contract through process management.
Construction management is managed through a process that repeats the three stages of plan, schedule, and control in a feedback loop. The master plan classifies tasks and determines the order of tasks to create a process diagram. The schedule plan calculates the total construction time based on the schedule table created in the master plan and adjusts the construction time through process management theory. Finally, in progress management, the schedule is revised or changed by comparing the actual work with the planned process.
Process management focuses on the construction period and is expressed through a process chart. The process chart is drawn in the form of a network diagram, which has been developed for different purposes in different fields. Gantt charts, which visually represent the duration of tasks in a clear manner, CPM (Critical Path Method), which focuses on displaying the relationship between tasks to be performed in construction, and PERT (Program Evaluation and Review Technique), which displays the time when tasks will be completed by probabilistic analysis, are used for process management. Such a process chart is selected and used according to the characteristics and requirements of each construction project, and through it, the progress of construction can be systematically managed.
One of the important aspects of process management is risk management. It is necessary to identify in advance the various risks that may arise during construction and to prepare countermeasures. For example, plans should be made to prepare for unexpected situations such as weather, material supply problems, and labor shortages so that the construction process is not interrupted. When this risk management is done effectively, construction schedules can be met, costs can be reduced, and construction quality can be maintained.
Cost management is the successful achievement of cost objectives within a given budget and schedule, and the efficient management and control of costs. In the construction industry, cost refers to the cost of materials, labor, and equipment, which are the resources required to complete the project. Since the business goal of all companies is to make a profit, cost management can be considered a very important management factor directly related to the achievement of the business goals of construction companies. Cost management is carried out through the processes of cost estimation, cost planning, cost control and cost accounting. Cost estimation is the process of predicting required costs. Cost planning is the process of planning for cost reduction. Cost control is the process of controlling expenses according to the plan. Cost accounting is the process of organizing revenues and expenses and comparing them to the plan.
Cost management goes beyond simply meeting the budget and acts as a strategic element to the success of a project. Effective cost management reduces budgets, optimizes resources, and improves overall project performance. This requires thorough cost analysis and planning from the earliest stages of the construction project. For example, the budget should take into account variables such as material price fluctuations and rising labor costs, and a contingency plan should be prepared. In addition, ongoing monitoring and adjustments are necessary to minimize unnecessary expenses that may arise during construction.
As mentioned earlier, all construction projects are carried out through competitive bidding. High competitiveness and quality data are essential to win the bid. In this industrial context, good cost management not only leads to an increase in the company’s profits, but also helps to accumulate cost-related data that can be used to calculate the costs of similar projects in the future. The more data there is, the better the service can be provided, so good cost management improves the quality of service provided by construction companies and further enhances the competitiveness of construction companies in bidding and contracting situations.
Cost management also helps increase project transparency. By accurately recording and reporting all costs, a relationship of trust can be built with the client. This is the basis for ongoing management and evaluation after the project is completed. Transparent cost management also plays an important role in preventing legal disputes and enhancing the company’s reputation.
If the client makes good use of construction management, it will not only shorten the construction period, ensure quality above the standard, and reduce costs, but also enable smooth communication and professional and objective decision-making on construction sites where various groups are involved. Construction sites that have stagnated due to the power struggle between the client and the construction company will be reorganized around the construction manager in the future. Construction managers can work with experts in each field to achieve optimal results, increasing the likelihood of success for construction projects.
Do you want to play a key role in the construction business of the future? If so, you should keep an eye on the construction management movement. As you gain experience and expertise in construction management, you will be able to understand the overall flow of construction projects and be able to manage them efficiently. This will help us build better buildings and contribute to building a better society.
