August 14, 2022

Value of Project Management for Construction Projects

Construction projects greatly depend on the success of project management. The main aspects of construction projects such as quality, cost and time management can be achieved by implementing better project management solutions. This is why project management plays a major role in construction project success. The below article discusses the value of project management and its importance for any business organization including construction companies.

Value of Project Management

Project Management is important for any business operating in today’s competitive global economy to deliver business results that align with the objectives. Therefore, for an organization, a well-designed project, program, and portfolio management strategy are important where in short it is called project management (PMI,n.d.). The time, money, and resources invested in establishing a project management expertise for an organization is worth, considering the results that include improved efficiencies, low costs, increased stakeholder & customer satisfaction, and greater competitive advantage for the business (PMI,n.d.).

Importance of a Project Management Department to the company

When a company is growing, as the business transactions are higher compared to before, the company needs to re-evaluate its business process to help the customers. To aid this, having project managers are important as they can help the clients to use the products bought from the company. Including project management in the business process will bring numerous benefits to the company and below are some of the key benefits that the organization can achieve.

Improved financial management

Financial management is important for any business. With better estimating, budget control, and monitoring the project status, the organization can track its cost for any project. Comparing the actual cost against the estimated, it allows the company to have better control over expenditure and as a result better and improved financial management for the company (TenStep, n.d.).

Improved team effectiveness

With well-defined scope and goals, the project team understands what they have to achieve. It is common that without a clear scope and goals, projects are not successful. Further, the team will lack motivation. However, by integrating project management into the process, goals are identified and that will improve the team effectiveness (Asana, 2020).

Improved Customer Satisfaction

Customer satisfaction is important for any organization. Instead of just delivering a project, it is easy to increase customer satisfaction levels by using project management techniques. With project management, it is easy to clearly understand and communicate customer expectations. By analyzing the project delivery process and expected risk, the project manager identifies the deliverables (McHale, 2019). All these are communicated with the customer and he knows what he can expect from the project delivery at the beginning of the project.

Conclusion

To coordinate available resources to achieve the project goals, project management techniques are used. By using a good project management strategy and methodology, an organization can achieve success and value to the business (TenStep, n.d.). Any company should not overlook the importance of project management as it brings value to the business. As construction projects are complex in nature, construction project management is vital too.

References

Asana. (2020). What are the benefits of project management?. https://asana.com/resources/benefits-project-management

McHale, B. (2019). What Are the Benefits of Project Management to Your Organization?. ProjectCentral. https://www.projectcentral.com/blog/project-management-benefits/

PMI. (n.d.). The Value of Project Management. https://www.pmi.org/-/media/pmi/documents/public/pdf/white-papers/value-of-project-management.pdf?v=893cecac-1fec-4ea9-b855-7b80aab3213b

TenStep. (n.d.). The Value of Project Management. https://www.tensteppm.com/open/A1ValueofPM.html

Disclaimer: This article was created using a paper written as part of the MBA program.

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Amila Gamage

Amila Gamage is the founder of Sihela Consultants and Builtlogy digital magazine. Her experience in the construction industry is over 17 years specializing in contract management. She is also an ACLP certified trainer in Singapore and conducts workshops and training sessions on related topics.

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