Regardless of budget or scope of project, the best way to control construction costs is by making the best use of your resources — starting with the project management process. This doesn’t mean cutting corners and quality; it simply means finding ways to optimize project management for both cost and time efficiency. Here are three important ways to cut construction project management costs.
Outsource Project Management
It’s crucial that decision-makers for a construction project accurately plan the budget, scope and timeline of projects, a combination that’s commonly called the “triple constraints of project management.” However, finding this balance isn’t easy and it’s important to leave room for negotiations — for example, a tight budget and timeline may mean lower work quality.
Because this balance can be difficult for those who aren’t as experienced with construction, outsourcing project management could be a viable answer. Although it may not be a one-size-fits-all solution, it could help in a few ways.
- Reduce costs: Think about hiring an in-house project manager and the costs associated with recruiting and onboarding a new employee. There’s a good chance that outsourcing could be significantly cheaper.
- Finish projects faster: A dedicated PM can focus on just one thing — your project — and leave you to focus on what it takes to grow your business.
- Tap top talent: Project managers do one thing; manage projects. That means they’re laser-focused on the tips, trends, and best practices you need to get the work done.
Use Construction Project Management Software
It can be easy to overlook project management software. The initial upfront investment could seem like a staggering amount of money to spend without much ROI. While this isn’t necessarily inaccurate, think about the long-term benefits that software can offer and the time (and labor) costs it could save to buy-in.
Not only does software help relieve some of the administrative burden, but it can also help provide a clearer, more comprehensive picture of deadlines, budgets, and other issues that can come up during the construction project. Software also allows for automation, tracking, and resource allocation.
Before choosing your software, though, make sure to research the wide spectrum of options and hone in on which features will meet your needs throughout the project and beyond. Additionally, think about the learning curve for the new software and the time it will take to train employees to efficiently use it.
Think About Agile
The concept of “agile” project management may most commonly be associated with software development, but the principles can be applied across virtually any industry. The foundation of agile is cost-savings, which makes it perfect for construction project management application, helping you to get more out of current resources.
There are twelve main principles of agile project management, starting with the idea that “customer satisfaction is always the highest priority and is achieved through rapid and continuous delivery.” Other benefits of choosing agile are increased flexibility and decreased risk of missed deadlines or objectives.
Above all, an agile approach to construction project management can cut costs in the face of unexpected changes that would traditionally eat into the budget. The level of risk mitigation means you’ll be optimizing the project and avoid overruns that delay completion.
Participate In Project Management
Whatever method is being used to cut costs, ensure that everyone who needs to be is participating in project management. Simply outsourcing doesn’t mean set-it-and-forget-it; decision-makers need to be apprised of progress and take an active interest. Without being dialed into the project, costs could run out of control and important milestones could be missed.
To do this without trying to answer endless emails or feel like a micromanager, use collaboration and communication tools to facilitate involvement. Tools like Slack are great options, although you’ll find endless choices out there. Look into tech tools that anyone can access at any time; on-site, on their computer, or even on their mobile device.
While this list includes several methods to help cut project management costs, it’s certainly not complete. Construction project management is a critical piece of any major project and with an expert on the ground, your project can move as seamlessly as possible through all stages of development. When starting a project with TD Wilson, you have the benefit of not only our decades of experience but also our expertise with today’s top CPM software products. Our approach to developing a well-defined project schedule leaves nothing to chance.