/ 12 July 2013

Managing the construction industry

Construction project management is said to be one of the most challenging and one of the most rewarding professions in the built environment.
Construction project management is said to be one of the most challenging and one of the most rewarding professions in the built environment.

Take a look across your city skyline. What can you see? A crane? Some scaffolding? Perhaps another mall, chain store or complex under construction?

Across South Africa there are signs of people hard at work bringing new buildings to life and amid the flurry and bustle of wood and brick and plaster dust, are the project managers who ensure that everything runs as smoothly as possible.

"Construction project management is simultaneously one of the most challenging and one of the most rewarding professions in the built environment," says Michael Taylor, executive director at Betts Townsend.

"In most projects, the project manager acts as the principal agent where we keep the client appraised of the project's progress and we have the responsibility for managing the professional teams and ensuring timeous execution of the project."

Donna Crossan, a seasoned project manager within the construction industry says: "Project managing a construction project involves managing the contractual relationship between the client and the contractors to provide the client with the required structure and all the while remaining within the time, cost and quality requirements of the job."

The role takes on forward planning, examines the cost and quality of the materials and teams, and handles the everyday planning of the minutia on a site. Years of planning go into a project, long before the job actually starts.

"Projects in construction are usually very detailed and require an intricate understanding of technical details and processes," says Crossan.

"You can't project manage the erection of a structure effectively if you don't have an understanding of how it's put together and how the various components and contractors work together."

According to Betts Townsend they are responsible for a substantial amount of what goes on at the site including feasibility assessments, working with professional sectors like architects and engineers, ensuring smooth progress within the project, managing main and sub-contractors, budgets, ensuring all parties meet their milestones, managing information flow, and occupational health and safety.

This is by no means an exhaustive list and it's clear that the role of project management within the construction industry is multi-faceted and, with all these balls in the air, extremely challenging.

Taking on the challenges
The industry faces a number of challenges at the moment, both within and without, as the turbulent economy takes effect.

Looking to the role itself, Crossan believes that a lack of skills is a concern: "Within the construction industry a project manager should understand not only the construction process, but also know how to manage the people involved."

She also points out that remaining impartial is an important skill and one that can be particularly tough when a project is big, dynamic and under pressure.

"Often project managers within the industry lack the technical skills to manage the team, but are also more aware of the client's needs than those of the contractors," she says. "An impartial project manager who understands the requirements of all the parties involved will then manage the teams and keep the project on schedule."

As the economy becomes more volatile and the industry faces increasing regulation and even fines, managing a project demands someone with a cool head and an in-depth understanding of how all sides operate — and this is not the only threat.

"With the current economic pressures in play, heavy discounting of fees by competing firms and contractors is prevalent," he says. "When fees are discounted it has a direct bearing on the risk profile of a project for several reasons, for example, if a company is charging lower fees it may not put its most experienced people on the job so the risk of not executing the job properly within the quoted price is raised."

Another knock-on effect can be that a company takes on too many projects resulting in a lack of manpower and even cash flow issues. This is not helped by pressure to maintain fast-track construction programmes.

"This has the potential to increase project risk as some consultants submit unrealistic project programmes to clients and then end up adjusting them part way through the job," says Taylor.

"Also, lack of funding is a concern as is the non-disclosure thereof by either the client or the contractor. The risk of these on government or parastatal projects can be high. The late payment from a client and the consequent cash flow issues can bring the project to a standstill."

The silver lining
Like any profession this one has its own special brand of challenges, but that doesn't detract from the many advantages that it offers someone who can see the potential.

Taylor says: "It is incredibly rewarding and the demands of the job may give you sleepless nights at times, but there is a sense of accomplishment that goes with doing a difficult job well, and getting the recognition that goes with it."

The profession is clearly not one that can be undertaken without extensive training or knowledge. As Crossan pointed out, project managers need to have a technical understanding that encompasses the different contractors and sub-contractors and all the elements that go into creating a build.

"The ever changing environment and the tangible product that you leave behind when you finish the project are very rewarding," says Crossan.

"I was fortunate enough to work on two Gautrain projects. They were tough and demanded long hours, but one day I can tell my children that I was involved in building the Gautrain.

"This industry exposes you to a huge array of other industries so there is no time to get bored — once you think you know a bit about plumbing, the heating, ventilation and air-conditioning contract arrives at the same time as the steel contractor, the cladding specialist and the scaffolding contractor."

The role of project manager within the construction industry is stressful, demanding, intense and challenging, but anyone who steps into this role will find themselves constantly learning, meeting and working with new people and industries, and leaving their jobs at the end of the day with sense of satisfaction and accomplishment.

Few careers have that much to offer and maybe next time you look at the skyline it will be your project that stands there.

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