Construction Management vs Project Management

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Aug 17, 2022

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The construction activities are seen overages in the name of the great pyramids of Egypt and Aqueducts of Rome and many others during the early civilizations. The modern construction activity started in 1950 in America and ancient England.




Project Management Vs Construction Management



Project Management

Construction Management


Financial calendar

Typically moves around the project

Typically aligned to organizations calendar



Project-based and responsibility of the PM to manage the finances

More complex and is aligned with the organization's budget



Centered around project deadlines

They are long term and business and operations-oriented deadlines


Change Management

Projects have their change management and need not follow the organization's change management

Tied to the organization and are very complex



Have managers till VP's taking part in projects decision making is not that formal

Involves senior management and decisions are formal and need complex decision-making ability


PM strategy

Tactical and needs to complete everything within the given budget and timelines

Is strategic and results in organizations goals and growth


PM roles

More like engineers  and interested in completion of projects

More like architects, aligned towards organizational goals and align all the projects towards the program.


Controlling and managing the construction phase of the project is called construction management.


Ø  Purpose - It ensures that all standards and guidelines are followed while executing all aspects of the construction conforming to time, safety, and budget.


Ø  Responsibilities include the following,


·       Schedule analysis

·       Quality assurance/quality control

·       Inspections.

·       Environmental, Health, and Safety

·       Document control

·       Cost management

·       Contract compliance

·       Claims avoidance

·       Change management


Ø  The focus of the management


·       Change Management

·       To adhere to quality and safety

·       Adhering to budget and schedule

·       Interfacing with the design that is constructability


Ø  Member’s involvement


·       Owner and internal

·       Project Managers

·       Permission from outside agencies


Ø  Impact


·       Ensuring minimal long-term impacts on the project

·       Delivering the construction to the budget, schedule, and safety


Ø  Risk


·       Quantifiable

·       Mitigate the risks of the project construction


Learn the basics of construction management and project management by attending the PMP certification course at StarAgile institute.


Project Management


It is the control and management of a single project concerning all phases of development


Ø  Purpose - This ensures standards and guidelines are followed for all the phases of project management. This includes design, procurements, construction, and turnover or closing out of the project.


Ø  The focus of the management


·       Key indicators are schedule and cost

·       Execute the entire delivery life cycle of the project

·       Have connection across all the processes of the projects


Ø  Member’s involvement


·       External permissions and vendors

·       Owner and the project manager

·       Interface, control and execute the projects


Ø  Impact


·       Deliver the project to the customer with best practices and add value to the products or goods


Ø  Risk


·       Risk of handover

·       Risk of operations

·       Risk of maintenance

·       Quantifiable risks.


Register for the PMP training online at StarAgile institute to move your career to new heights.


Project construction management


Project management is the art of managing and controlling complex projects with human resources and other resources throughout all the phases of the projects to achieve the predetermined objectives of the scope, time, cost, and quality and customer requirements. The project construction management is doing the same thing on the construction project or construction context.


Construction Project management is a complex field that requires various skills in building complex construction projects, the ability to solve problems, and know the law, business, finance, mediation, and civil and various construction techniques.


Project Management role in construction project management.


The construction project manager is the key person who shoulders the responsibility of constructions as per the plan. He ensures that the construction project is delivered as per the agreed schedule, budget, and scope while meeting the requirements of building plans, codes, and specifications. He is entrusted with the duties of scheduling, cost management, and budgeting, and other building management by talking to the vendors, hiring contractors and on-site workers, etc. Learn the roles of project manager by attending the PMP training course at StarAgile institute.


As per the construction management association of America a US construction management and advocacy body, there are 7 terms in which all the 120 responsibilities of the construction project manager fall, they are as follows,


·       Time management

·       Safety management

·       Quality management

·       Project management planning

·       Cost management

·       Contract administration

·       Construction management professional practices which include managing the construction workers and ensure they follow the roles and responsibility assigned to them.


Role of a contractor in construction management,


After the design phase is over the project manager starts the bidding process for selecting the contractors. The contractors must qualify by showing the ability to handle public safety, engineering, drafting, decision making, and time, human resources, cost, and quality management. The contractors who meet the above guidelines are then chosen through low-bid selection, best value selection, or qualification-based selection.


There are many ways to win the project management,


a.      Open Bid - Any of the contractors with required eligibility can participate in the bid


b.     Closed bid - Based on the guidelines a group of chosen contractors are invited to send in their bids for the selection process.


After this is done there are some criteria that are explained below for the selection of the contractors,


·       Low-Bid selection - Once the guidelines are met, the lowest bid value contractor is selected for the project.


·       Qualification-Based Selection - The owner asks the contractors to submit the proposal that is the contractor's experience, organizational flow, plans for the management of the schedule, and plans for staying within the budget. The best qualification of the contractor is selected.


Finally, once the owner chooses the contractors the next step is to negotiate the payment terms.


There are 4 payment models they are as follows,


1.     Lump-sum - Irrespective of project success and even if the final bill surpasses the initial quoted price by mutual agreement the owner must pay the amount to the contractor.


2.     Cost-Plus-Fee - In this type, the owner must pay the total cost plus the contractor’s fee.


3.     Guaranteed Maximum Price - Here both the parties set up a maximum cost including fee which should not exceed the maximum cost.


4.     Unit price - Here the owner pays the unit fee for different phases of the constructions as per the unit-price model and price.


There are 2 business models for the construction project they are as follows,


1.     Design-Bid-Build contracts - In this design is done by the architect and then the owner selects the contractor after the bidding process by the owner. This is a popular model.


2.     Design-Build Contracts - Here the design and build are handled by the same party. This speeds up the entire process as both can be done simultaneously.




As you have seen some of the concepts in construction management and project management and their differences, now to know more register for the PMP certification training online at StarAgile. StarAgile is a training partner of the Project Management Institute (PMI) for conducting the online PMP training.


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