5 Benefits of Good Construction Project Management

It goes without saying that efficient management of any construction project, whether big or small, residential or commercial, plays a vital role in its success.

Good construction project management ensures that every project phase—from initial planning to closeout—runs smoothly and aligns with key time, cost, and quality objectives.

In this article, we’ll explore five key benefits of implementing effective management practices and tools and how they can contribute to the success of your construction projects.

Keeps the Construction Project On Schedule

Good project management helps keep the construction project on schedule by proactively avoiding delays and mitigating the effects of unavoidable setbacks.

The construction industry is infamous for delays, especially in large projects, with one study showing that as much as 77% of projects were completed behind schedule.

The reasons behind the persistent delays in construction projects worldwide reflect the complex and often unpredictable nature of construction.

For example, if a project design is incomplete or flawed in any way, this can trigger a range of issues that ultimately cause delays, such as:

• incorrect material estimates leading to shortages,
• poor scheduling of project tasks,
• difficulties obtaining permits,
• the need for rework.

Of course, incomplete or incorrect design information is just one of many reasons for project setbacks.

According to a survey of 400 construction leaders, here are some other most common causes of delays:

While these point to some of the main issues behind delays, this is only the tip of the proverbial iceberg.

In other words, reasons for not completing projects on time also include:

• poor project planning and scheduling,
• frequent project design changes,
• inefficient material and equipment management,
• regulatory compliance and approvals issues,
• inaccurate project budgeting and late payments,
• unfavorable weather conditions.

So, what effective project management practices and tools do construction companies typically implement to mitigate these issues?

Among many solutions that arise from the above reasons, we’ll focus on one practice and one tool with proven delay-reducing effects:

• thorough project planning,
• project management software.

As for planning, KPMG’s 2023 Global Construction Survey revealed that 71% of surveyed construction professionals find it very important to minimize project disruptions.

A simple logic guides this attitude: more time invested in planning → better project plans → fewer delays.

More precisely, detailed project planning enables you to keep construction works on schedule by:

• clearly defining the project scope and deliverables,
• identifying potential risks and establishing contingencies,
• effectively allocating resources (labor, materials, equipment),
• developing a realistic project schedule with clear milestones.

As for digital tools, good planning is hard to do without them.

One of the most effective solutions for preventing the causes of delays we mentioned is project management software.

Although the features of such solutions vary, they generally help contractors in preventing delays by:

• centralizing all project information in one place,
• making updates easily accessible to all stakeholders,
• enabling real-time tracking of scheduled tasks and project progress,
• improving communication through a single platform for team collaboration.

Most project management solutions ensure integration with the main tool for designers and engineers preparing project designs—BIM (Building Information Modelling).

This integration can further reduce potential delays by allowing seamless collaboration between design and construction teams throughout the project.

In summary, investing more time in effective planning and using modern project management tools is how you keep your construction projects on track.

Ensures the Project Stays On Budget

Good construction project management also puts the project budget under control and helps you avoid cost overruns.

It’s no secret that cost management is a persistent challenge across the construction industry.

That’s because budgeting for construction projects is inherently complex due to the diverse array, scale, and variability of the expected and unexpected costs involved.

As a result, going over budget is quite common, especially for larger projects.

This was demonstrated by a huge study that examined budgeting and cost control across construction projects in 20 countries over 70 years.

It’s worth noting that budget overruns can be significantly higher than reported here, with some construction projects doubling or even tripling their initial budgets.

The reasons behind these costly overruns typically include:

• inaccurate initial project cost estimates,
• changes in project scope and design alterations,
• unforeseen site conditions or environmental issues,
• regulatory changes or compliance/permitting requirements,
• not budgeting for change orders or additional contingencies.

Of course, there are many other causes of budget overruns of all sizes, such as poor resource allocation, inefficient site management, and labor shortages/unqualified staff.  

Similar to keeping the project on schedule, many of these overruns can be prevented through meticulous project planning and by using software tools to streamline related processes.

To illustrate what good planning practices can do, let’s take an ongoing project that’s over budget and see what they could’ve done to avoid overruns.

For instance, the Whiteland Community High School renovation project is $28 million over budget so far.

While Phase 2 of this project is already around $6 million over budget, let’s explore the overrun of about $22 million in Phase 1.

Based on these specifics, it’s clear that the initial Phase 1 project scope was not well-defined, leading to significant design changes and cost increases later on.

For example, not only were the cafeteria and kitchen subsequently enlarged by 11,500 feet, but the kitchen equipment costs were also underestimated.

Therefore, much of the Phase 1 overrun could have been avoided if the project team had:

• insisted on identifying owner-required scope changes during the planning phase,
• defined those changes and adjusted cost estimates accordingly,
• factored in budget contingencies for further potential changes.

Of course, proactive use of project management, budgeting, cost estimating, and material takeoff tools would also help anticipate these cost escalations and ensure the project stays on budget.

Facilitates Communication Among Stakeholders

Communication is how you keep projects on schedule and within budget, even in the face of many challenges. And good project management facilitates it.

Well-established communication guidelines and the use of appropriate software tools ensure clear and consistent communication among all project stakeholders.

This is crucial for preventing confusion, misunderstandings, and errors.

You reduce chances of delays when everyone involved in the project can:

• easily access relevant information,
• trust that this information is promptly updated,
• know exactly who to contact for specific issues or clarifications.

This is especially important when considering that poor communication and inaccurate project information are big causes of rework, as an Autodesk study found.

Other findings in this study also highlight the importance of ensuring that all stakeholders, including workers, have easy access to relevant, regularly updated information.

Namely, the study found that workers spend almost 16 hours a week looking for project information.

That is easily avoidable by using centralized project management software or another data management platform that makes this information easily available.

Then, different team members can also update data and others can leave notes and comments.

Of course, team communication apps, whether they’re part of your construction software or standalone tools, can also facilitate daily stakeholder collaboration and issue-solving.

Overall, clear communication protocols and easy information access supported by the right tools can help you streamline project communication on all levels, avoid costly mistakes, and increase operational efficiency.

Helps You Remain Compliant with Regulations

Good project management practices supported by software tools also ensure adherence to legal, regulatory, and safety standards, which is crucial for protecting workers and reducing liability.

More specifically, non-compliance with national and local building, financial, employment, and safety regulations can result in:

• increased risk of accidents,
• work stoppages,
• hefty fines,
• lawsuits.

Given the complexity of modern construction projects, staying compliant requires meticulous planning, thorough documentation, and continuous work monitoring.

Regulatory requirements may include everything from building codes to permit conditions, environmental protections, worker safety protocols, and regulatory reports.

Therefore, it all starts with comprehensive research and consultations to establish the regulatory framework and requirements for the project.

Following this, robust documentation practices are essential for meeting compliance, including maintaining accurate records of permits, inspections, and safety certifications.

That’s where document management solutions, standalone or part of an end-to-end software, play a critical role.

Such solutions centralize and organize all necessary project documentation, ensuring easy access and updates.

Of course, compliance extends beyond keeping detailed documentation on project schedules.

It involves documenting all parts of the project, from bidding to equipment management.

For example, your equipment is subject to safety inspections, regular maintenance, emissions standards, and proper usage protocols.

Furthermore, equipment usage data is often necessary for precise billing, as well as financial reporting (e.g., depreciation).

This is where equipment management software can help by providing a centralized database for equipment data, maintenance records, and more.

For instance, our equipment tracking solution, GoCodes, will allow you to keep track of all the equipment-related information in one place.

Actually, GoCodes will enable you to track the location, usage, and maintenance status of all your equipment and tools.

Yes, keeping construction projects compliant with regulations is a challenging task. It requires meticulous research, planning, record-keeping, and continuous monitoring.

But all of this can be achieved by keeping detailed records of all aspects of your construction project, from equipment utilization to project costs.

Ensures that Quality Standards Are Met

Lastly, good construction project management ensures that construction work meets the agreed-upon standards and specifications, which leads to better overall quality.

Since the safety and durability of the final product—such as a building or a bridge—is crucial, ensuring effective quality assurance across all project phases is inevitable.

Achieving this again requires detailed planning, constant oversight, and advanced tools.

For instance, construction plans should include:

• detailed specifications for materials, methods, and standards,
• quality control procedures to be implemented throughout the project,
• checklists that facilitate adherence to established quality requirements and guidelines.

To illustrate, here’s a quality control checklist for excavation.

Checklists also help ensure consistent quality by:

• tracking progress,
• regularly auditing completed work,
• identifying deviations from established standards.

Ensuring compliance with quality standards may also involve using high-precision measuring instruments or surveillance tools like drones.

Then there are various software tools, whether specialized or integrated with other project management functions.

For instance, how about a mobile app designed precisely for construction quality inspections, such as Raken?

Their banner says it all.

With such specialized quality assurance tools, your employees can conduct quality inspections using predefined checklists.

If there’s a quality issue (or a safety concern), they can:

• report it by submitting an observation,
• easily provide photos and videos for clarity,
• assign relevant persons to review and address the issue.

These features result in streamlined and way better construction quality management.

Therefore, the above-described good project management practices are the bedrock for maintaining high-quality standards throughout the project.

Conclusion 

Now you know more about the benefits of good project management in construction.

Its importance spans over so many areas but boils down to one key thing: keeping everything under control.

We’ve also shown you what you can do to achieve these benefits, and which tools you can use.

So now you are ready to take project management more seriously.

Remember that investing in good project management practices is not just a strategy—it’s a necessity for the long-term success of your construction business.