Managing a construction project is as big of a task for developers as it is for contractors. Construction projects come with multiple moving parts, so the ability to make quick decisions on the job site will ultimately determine the success of a project — including completing the construction job on schedule.

Here are four tips we encourage our multifamily construction developers to follow to ensure efficient project management and successful results.

Make an assessment of the current situation

Take a look at past and current construction jobs. Were previous jobs completed on schedule? Do you see any trends with difficulties on previous jobs? For example, is there a correlation between location of the job site or the site manager and the success of the project?

Which previous projects have the best profit margins? What factors might affect profit? How successful is communication from the top down? By taking time to assess the current situation, you’ll have a clear idea of the direction you need to move on future projects.

Establish benchmarks related to each project

Benchmarks are the key to gauging success of any project no matter the industry, and can be just as helpful when it comes to managing construction projects. After assessing your current situation, take a look at how you compare to other developers and their projects. Then, establish benchmarks that will help you reach your goals for project success and profitability.

The Construction Financial Management Association provides specific benchmarking information and allows construction companies to see how they stack up when compared to others in the industry.

Establish new processes and/or update existing processes

Once you’ve assessed your current situation and established benchmarks, take a look at your existing processes. Do your current project management processes accomplish your goals? As necessary, make adjustments to your processes to allow you to meet your company goals and increase profitability.

Consider cloud-based technologies to provide real-time access to key project data

Access to real-time data is key when it comes to on-site decision-making. By utilizing cloud-based technology, you will be able to keep information on projects up-to-date at all times. This information can be accessed securely from any location with an Internet connection.  (Sage Construction Anywhere is just one example of a cloud-based collaborative software for construction projects.)

Improving project management is essential if you want to increase your profit margin. Successful project management leads to a successful completed project. By improving project management, you should notice a trickle down effect from the project managers to the contractors and laborers doing the work.

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