The commercial construction market is in boom all around the world because of the opportunities it offers. There are various new commercial projects starting all around the world, bringing in revenue and profits for contractors. Despite all these attractive features, commercial construction is very complicated as compared to residential projects.
Because of its high level of complexity and size, commercial construction projects require a higher level of management and more planning time. A construction project management company is crucial for the success of commercial projects. Effective construction management of commercial projects will help you prevent common obstacles and ensure consistency in your work.
Tips to Effectively Manage Commercial Construction Projects
Within the construction industry, there are some hard and fast rules and tips that all experts agree on. For effective commercial construction project management, following are top tips from industry experts:
1. Set an Attainable Project Schedule
The first step to commercial construction project management is setting a realistic and attainable schedule. When you create a realistic project timeline, it will help you keep your clients satisfied from the very beginning of the project. If you set an unrealistic schedule and fail to achieve it later, it will leave a bad impression on the clients.
Therefore, draft a realistic project schedule and make sure all the parties are well informed of the deadlines, so there is no confusion. Some of the typical areas to address during scheduling of a commercial construction project include the following:
- Design: construction plans, project specifications about necessary equipment and material.
- Pre-construction stage: getting the site ready for construction by performing soil tests and environmental concerns.
- Material Procurement: work with subcontractors and suppliers regarding the purchase of necessary materials.
- Construction: meeting with subcontractors, workers, and vendors, establishing safety measures, overseeing labor work.
- Commissioning: Wrapping up the project and handing it to the owner.
- Project closeout: wrapping all the loose ends, documentation, and payments.
2. Plan a Realistic Budget
In commercial construction projects, one of the most common mistakes done by contractors is when they plan a false budget and end up with cost overruns. This type of situation often leads to construction claims and disputes. When contractors are planning a budget, it is crucial to incorporate every single detail and also account for the unforeseen events.
By planning extra expenses, you will have enough room in the budget in case things don’t go as planned. Another important consideration for contractors is to determine the type of payment before selecting a project. For example, the payment can be disbursed by the owner as a lump sum, guaranteed maximum price, or under a cost-plus-fee-system. Knowing the type of payment will help you during budget planning.
3. Evaluate Your Landscape and Site condition
Before you start construction work on a commercial site, make sure to evaluate the landscape and site conditions. Proper site evaluation is the key to a successful commercial building project. Even a small mistake can lead to delays, safety issues, and authoritative penalties. In commercial construction projects, you also need to be cautious about public utilities.
When you are evaluating the construction site, you need to consider the following things:
- Will the structure physically fit on the site chosen for construction?
- Is there room for building expansion for future purposes on-site?
- What are the soil compositions, and is there a layer of bedrock that needs professional help?
- Are there any protected streams, lakes, waterways, etc., near the site?
- Will the site have access to municipal water and sewage system?
- What is the cost of electricity and how far is the site from the nearest substation?
4. Keep all Records and Documents
A critical part of commercial construction project management is organizing all the documents and files associated with a commercial project. A proper record management system is essential to see if people are following all the protocols related to your project work, and all the information is readily available for different teams in case they need it.
Contractors are responsible for deliverables like work breakdown structure, risk mitigation plan, and documentation. Poor documentation often leads to a higher risk of disputes, construction delays, and cost overruns. Effective documentation can be presented as evidence in case of delay claims and arbitration.
5. Create A Risk Mitigation Plan
The construction industry is highly unprecedented and risky. Thus for effective construction project management, you need to have a risk mitigation plan in place in case things go sideways. Before starting construction work, sit down with your team and determine all the potential risks associated with your project and then develop a plan.
Here is a brief guide to risk management in construction projects:
- Identify the type of risk associated with the project (e.g., natural disaster, safety hazard, site condition, etc.)
- Review your previous projects to develop a sound risk mitigation plan.
- After identifying the risks, assess each risk individually based on its probability of occurring and the extent of potential damage.
- After assessing the risks, categorize them as low, medium, and high.
Commercial Construction Management Made Easier!
Construction projects may vary in scope and size of the work, but they follow the same principles in terms of management and performance. With proper planning, even the largest and most alarming construction obstacles can be prevented. The construction industry is ever thriving with unlimited opportunities.
No matter the size and scope of your project, remember that proper planning ahead of time will make construction project management very easy. So, make sure you have a proper project management plan in place before starting your work.