Construction management is a key factor in a successful business. If you are having a hard time in your campaign, we’re help to assist you. In this article, we’ll show you the basics in construction management and using its software.
Why Use Construction Management Software?
Construction management software or CMS for short, is a construction management tool used to help in projects, particularly in the construction industry. This software will manage your reports, analyze data, creates plans and helps in the development planning of the project.
By using the software, it will greatly improve your project’s success. It oversees the building process, facilitates in training employees and informs them on what to do with the project. It will provide you the communication your group will need, whether onsite or offsite. If a problem arises, you would be able to think of solutions as quickly as possible.
Who Uses Construction Management Software?
Construction professionals are the ones that use software for construction management to make their lives easier. They can be individuals or groups of people that use the software. These professionals are specialists in areas such as commercial, residential, industrial, agricultural, civil, environmental, institutional and other industries that are associated with construction.
There are two kinds of construction professionals which rely heavily on CMS. These are the contractors and the project managers. Each has their own specific responsibilities in construction. We would now be talking about each job role and how project management software for construction makes their job easier.
The Project Manager/Owner and CMS
The Construction project manager oversees the whole construction operation. They make sure that the project starts and finishes on time. They also make sure that the budget is distributed evenly and allocated correctly. They make sure that the team is able to fulfill all the needs necessary in the project. They help choose the best contractors and have a great HR resource. They develop ways for communication for the team and resolve any current issues. All of these can be managed by the CMS, which is a great help for them. The top five management capabilities of CMS for project managers are: time management, project management, safety management, cost management and quality management. Project managers can definitely take benefit if they have one of the top construction management tools available today.
The Contractor and CMS
Contractors are focused more on the building process of the building itself. To be able to be part of the project assignment, they have to undergo a bidding process where the project manager chooses them. The project manager selects them by either low-bid selection, qualifications-based selection or best-value selection which we’ll talk about it more later on.
Contractors use CMS to make sure they utilize cost management, time management and other resources such as human resources, calculations, graphs and other data. They also should be able to adhere to the public safety rules and other policies set in the building. Lastly, it also helps in their decision-making when a problem arises. Check on the top construction management tools if you are a contractor here.
The Basics of Construction Management Software
Let’s find out how construction projects are made to know how CMS can help them out
The first step in construction is getting a project. The owner of the project will be presenting to a group of individuals that will explain what is included in the project. These people will then bid for every process in the project, starting from a cost estimate until the commissioning. The bidding process will estimate how much each contractor or group’s budget will be.
The bidding process can be in two ways, an open bid and a closed bid. The open bid is open for the public and is often advertised to everyone. The closed bid is only for private projects and selected participants are invited.
The project owner will then gather all the bids and select the most suitable candidate. The selection process could be based on the following:
- Low-bid. This is the type of bid where the project owner will select the bidder that has the lowest cost presented.
- Qualifications-based bid. This is the type of bid where the overall past experience and performance of the bidder is considered.
- Best value bid. This is the type of bid that considers both the rates and the qualifications of the bidder.
Once a contractor has been selected, a payment process for the contract will be discussed. These four payment types are:
- Lump sum. This is the most common type of payment. Both the project owner and the contractor will set a meeting to discuss the overall budget of the project. Once the project has been completed, the owner will make the payment to the contractor. The price is fixed so even though the project was not successful or if the overall budget went over the initial budget, the price will stay the same.
- Unit price. If both owner and contractor do not agree to a specific price initially or if the price of the materials fluctuates, this type of payment is recommended. This is because the owner will pay for the initial materials used. The owner will then pay extra for any additional materials afterwards.
- Cost plus fee. This payment method will make the owner pay for the total cost of the project plus a fixed percentage charge of the overall cost. This will greatly help the contractor in case there would be any additional fees.
- Guaranteed maximum price. This payment method is similar to the cost plus fee but there is a limit to the spending price.
The best construction management software will help both owners and contractors find the best rate for their projects. It will also facilitate in budget planning and human resources management.
Once the bidding process ends, the construction process will start. The first step of the construction process is the initiation. At the start of the process, there would be evaluations to determine if the project is attainable and if it can commerce at once. A project initiation document (PID) is made.
The planning process is next. This will give an overview of what will happen to the project. Another document called the project management plan (PMP) will be made. This document would provide on how the project will be managed and carried out. It will also give the specifics on what the project will cover, the estimated rates, and give a predicted timeframe for the project’s progress.
During this process, the building construction management software should have these features:
- Communication plan. Anyone can contact someone in the project just in case they need help. It keeps everyone on the loop on the progress of the project. It also decreases the chance of any mistakes due to miscommunication.
- Scope documentation and scope statement. These two documents will identify the objectives and needs of the project. Any deliverables, key milestones and benefits would also be included in the scope documentation and statement.
- Risk management plan. This will help determine any risks that might occur in the workplace. Accidents, inflation, budget cuts and unexpected changes in the plan will help in making sure the project stays on time.
- Work roles and responsibilities and work schedule. This ensures that each person’s roles and responsibilities are given in a clear manner. A schedule also will be drafted to be able to finish the project’s target end date.
So, those involve with the project now knows the plan. What’s up next is how to implement the plan and make it a success. They gather the materials and implement project management. This process will keep track of the progress and the project’s schedule. Any modifications to the plan may be done in this process. They closely monitor what’s happening to the plan and checks its optimal performance when it’s finished.
Once a project is done, this is called a closure. A complete inspection of the project would occur, finding out what went wrong and what went well. An overall evaluation is created and a report is made, including the final budget. This is also the time everyone involved with the project celebrates their success.
Budget and Costs
Of course, projects can be very costly. A project may fail if the budget was not estimated or allocated correctly. At the start of the project, money is already taken into consideration. We’ve already talked about it in the bidding process.
There are two main features a construction project management software should have which is cost estimation and cost control check. Cost estimation is made when starting a construction project. It gives out an estimated budget on how much everything the project would cost. This would include the construction materials, employment costs and unit prices. Included in the estimate are the permit costs and other operating cost fees.
Cost Control Check is the making sure the materials used are of quality. If they choose inexpensive materials but prove to be flimsy, it may cause them to buy more materials of the same kind, making the budget twice the amount that it was planned. All invoices are properly accounted for and receipts are kept for record-keeping. You can check on the financial features Reviews of Construction Management Tools by reading here.
Staying on Schedule
The construction business take a lot of time and it can be overwhelming to follow up and monitor all the tasks. Below are some of the ways a construction management tool can help a project stay on schedule.
- Contract procurement preparation. This plan helps make sure that everything the project needs is beneficial to the project.
- Daily documentation. A day-to-day report of the project will help determine what is the progress of the project and if there are anything that needs to be added to it.
- Records management. A complete record keeping will find out what are the project’s strengths and weaknesses and find solutions if there are any issues.
Here is a great guide in knowing about construction management and construction management software. Interested in more construction management information? You can get more information by reading SmartSheet’s article. Read more about CrowdReviews’ reviews of construction management tools here.
Keith Moore
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