What is project management?

Project management is the practice or discipline that involves planning,

motivating, and controlling efforts in order to achieve a specific objective.
The project objective (usually creating a product or service) is created
and delivered within a defined budget, scope, and timeline.

Project team roles and structure

Now let’s get into who is involved in project management.

Project manager: The project manager is the sole person given the
authority to manage a project. They are responsible for defining the
processes used to manage the people, tasks, and delivery at every stage
of the project from planning to close.

The project manager is responsible for defining the work/tasks, creating

the project plan, maintaining the budget, managing the change order or
change request process, managing the project scope, maintaining project
documentation, and reporting and communicating to all stakeholders on
the project’s progress and status.

Project team: The project team could be any mix of full-time or part-
time employees or contractors assigned to work on the project. This team
should be execution focused, working to ensure each task is done as
defined and within the budget and timeline. They’re responsible for
understanding the work to be completed, knowing when to escalate
concerns or issues to the project manager, and proactively
communicating task updates.

Project sponsor: The project sponsor is the person who requested the
initiation of the project and has ultimate authority and final say over the
project. They’re typically responsible for securing project funding,
resolving high-impact issues and scope changes, and approving the major
project deliverables. The project isn’t successful or complete until the
project sponsor says so.

Project management 101: Documentation

A core responsibility of a project manager is creating and maintaining
documentation for the project. From defining what the project’s purpose
is before work starts to writing out the lessons learned after the project
ends, project documentation ensures agreement on and transparency of
expectations, serves as a guide for the team, and will help inform how to
design future, similar projects.
 Project plan: A project plan is the core project document: It defines the
project objectives/scope, project schedule, and high-level requirements
while also taking into account the budget and timeline. Sometimes called
a project charter, this document is where you will formally state the
project team and roles by name (don’t forget to include yourself as the
project manager!).

Additional information to include:

 The communication plan, including the types of meetings and

reports along with their occurence cadence.
 A definition of what the project’s success will look like.
 The task management plan or task tool to be used by the team.
 The approved project budget.
 The project management methodology.

Let’s further break down how to define the project scope and
requirements, as they are critical in the successful planning for any
project.

Project scope: The scope defines the ultimate goal of the project and
the work that must be done to deliver it. The project manager works with
the project sponsor to define the project scope before the project begins
and also makes changes along the way as needed. The high-level scope
and the project’s boundaries and perimeters should be documented in the
project plan.

A clearly and plainly stated scope is the best setup you can have for a
successful project.

Once the project scope is approved by the project sponsor, any changes
that need to be made must go through a change order process, which
we’ll get into below.

Project requirements: Requirements can come in many forms, but are

essentially detailed descriptions of what the product or service should
provide the user, what it should look like, and how it should perform.

The project manager should include the high-level requirements in the

project plan, as part of the scope, and the detailed ones in a shared
document where your team can readily access them. Each member of the
team should be involved in reviewing the details in the requirements to
ensure clarity and agreement on what needs to be done.
Just as with changes to the project scope, once the requirements are
approved by the project sponsor, any changes needed must go through a
change order process.

Further reading on creating a project plan:

“Project Planning Checklist: 5 Steps Every Project Plan Should Follow”:
Follow this simple checklist when creating your project plan to ensure you
cover all the bases.

Change orders: As discussed above, once the project’s scope,

requirements, and even budget and timeline are approved, any changes
need to go through a formal change order process. This ensures that all
requested changes are properly documented, reviewed, and then
approved or denied. This builds trust in the project management process
across all stakeholders and also forces hasty or ill-formed decisions to be
fleshed out before action is taken.

A change order document can be a spreadsheet or any type of file that is

visible to the team. It’s important to document all change requests, both
approved and denied.

Further reading on project issues and decisions:

 “Most Popular Decision-Making Frameworks Among Project Managers”: Decision-
making frameworks such as SWOT, RACI, and RAPID help project managers make
effective decisions. But they’re not each right for all instances. Learn which
framework will best suit your needs.
 “Project Management Communication Skills When in Crisis”: Project managers need
to be master communicators, especially when things go unexpectedly. Here are
communication skills and tips you need to know to be successful in a crisis.
 “RAPID vs. RACI for Decision-Making: What’s Best for Your Project?”: RAPID and
RACI are two popular decision-making frameworks, but each have their own
strengths and weaknesses. Learn about each and when to use them.

Status reports: Our last document type is the (in)famous status report.
This is a recurring document stating project progress, major task updates,
and project budget updates. This ongoing and transparent report helps
you, your project team, and key stakeholders stay honest about the work,
budget, and issues.

Further reading on status reports

 “Your Project Status Report Checklist: What to Include When You Report to
Stakeholders”: Learn how to create a project status report like a pro and what to
include when you report to any project stakeholder.
 “What Does Yellow Mean? Defining Project Report Statuses”: Project health needs to
be reported in language that leadership understands, and we recommend using clearly
defined green, red, and yellow statuses.
Project management tools
Let’s look at the most basic (as this is a only a 101 guide) project
management planning tools and show how they function within project
management software programs.

Gantt chart: A Gantt chart is a graphical representation of a project’s

tasks along the timeline, used to track project schedules.

Screenshot of a Gantt chart in TeamGantt (Source)

 Work breakdown structure: A WBS, or work breakdown structure, is a
hierarchical chart that outlines major project deliverables and then breaks
those down into smaller, more manageable tasks. It’s useful for complex
project work to help identify where your team needs more detailed
requirements for that task, when you’re identifying the critical path,
and/or when nailing down a realistic timeline for deliverables.

Screenshot of a construction project management WBS in OpenProj

(Source)

Critical path: The critical path for a project is the sequence and timing
of tasks that must be completed in order for the entire project to be
completed on schedule. A task belongs on the critical path when, for
example, a one-day delay for that task would cause a one-day delay for
the entire project. The critical path will be the longest duration of time
needed for the project work to be completed.
 Screenshot of project scheduling with critical path method in SmartPM
(Source)
Further reading on project task timing
 “How Understanding Critical Path Can Drive Project Management Success” : When it
comes to project management, evaluating the “critical path” means identifying the
essential activities that drive the project timeline.
 “What Is a PERT Chart? Learn How This Tool Can Keep Your Projects On Track” :
Learn what a PERT chart is, how it benefits project managers, and the best practices
for using one.

Risk register: Every project has potential events that, if they occur,
would have a negative impact on at least one project objective. These
events are project risks and as the project manager, you should create a
risk register document to track each risk event, the action needed to
reduce or correct the risk, and its status. Every project manager should
create a risk register so you can anticipate and address risk before it
throws your project off course.

Screenshot of a risk register in Zilicus (Source)

Further reading on risk management
“Follow the 5 Steps of the Risk Management Process to Build a Plan for
Your Business”: Learn what the risk management process is and how to
follow it. We break down the steps, show what each looks like, and offer
tips.

Popular project management methodologies

This section will define the most common IT project management
methodologies designed for software development teams. Other
industries, such as construction, may not benefit from the iterative
building approach used in these methodologies. (In fact, I can only
imagine the look on a construction manager’s face when asked to build a
house with only a Scrum team of six people!)

Agile: Agile is an adaptive, flexible methodology for gathering project

requirements, execution, and delivery, typically used for software projects
with short bursts of work called Sprints. Essentially, you’ll start the
project with high-level requirements, but not every detail will be worked
out before the team begins work. Instead, the team will focus on blocks
of work, show those to the project sponsor, and then either make
changes or move on to the next block of work.

Scrum: Scrum is an Agile teamwork methodology delivering iterative,

incremental segments of work and is typically used for software product
development. The term Scrum comes from the game of rugby where the
team leader, the Scrum Master, enables the Scrum team to work quickly
and make decisions on their own. A Scrum team is an empowered team.

Further reading on Agile project management methodologies

 “Why an Agile Project Manager Will Help Your Team Succeed”: Learn how an Agile
project manager can help keep Agile and Scrum projects in line, and when it can lead
to over-planning.
 “Agile vs. Waterfall: Matching Method To Project Requirements”: Learn which
attributes make a project a better fit for an Agile or Waterfall approach.
 “5 Essential Scrum Meetings: Is Your Team Doing Agile Right?”: Discover the best
practices for hosting effective Scrum meetings at your small business.
 “What Is Agile Decision-Making in Project Management?”: Agile project teams need
to make decisions collaboratively, iteratively, and with transparency. Check out tips
for how to make this a reality in your Agile project management decision-making.

How to find the right PM software

What is construction planning?
Construction planning is the specific process a construction manager uses
to lay out how they will manage and execute a construction project, from
design to building completion. In the planning stage, you’ll identify all
construction activities, design the construction schedule, and plan out
your team structure (such as if you will use a contractor or
subcontractors). The construction plan lists the activities required and the
schedule for each part in the construction process.

Now, on to the steps for a perfect construction planning process.

5 steps to the perfect construction planning

process
For each step below, we’ll give you the quick version and then follow with
all the details, the full breakdown of each step of the process. We’ll also
explain how software can help for each section.

And as a little bonus, we’ve created a downloadable process guide with

the highlights so you can keep it handy when you start planning your next
construction project.

Step 1: Create the project

THE QUICK VERSION:

Create a Project Initiation Document that spells out the people,

resources, and budget for the project.

ALL THE DETAILS:

Every construction project, no matter how big or small, needs to start

with a business case that lays out the feasibility of the project and what
it’s going to take to get the job done.

Start by creating a Project Initiation Document (PID), which describes the

following in general, not technical, terms (the technical part comes later):

 People: Number of workers needed including subcontractors, such

as plumbers and electricians.
 Resources: Necessary materials for the design and building plans.
 Budget: Total cost estimate of the project including labor,
materials, equipment, fees, and permits.

The purpose of this document is to outline the resources you’ll need to

complete the project, both for your stakeholders and your crew. Check
out this article for more standard project management terms.

Construction software features that can help with this:

Most options in Software Advice’s construction software directory offer

basic project management tools that should allow you to build a work
breakdown structure with all the work activities listed out in the plan. The
software can create the Gantt chart and manage the critical path of tasks
for you.

Step 2: Draft an initial plan

THE QUICK VERSION:

Use the S.M.A.R.T. and C.L.E.A.R. processes to set concrete, specific

goals for your project.

ALL THE DETAILS:

Now comes the point where you need to turn the PID into a more
concrete plan by setting goals that are S.M.A.R.T. and C.L.E.A.R. You’ll
take the specific resources you listed in the previous step and use that to
inform a broader strategy that will guide how you actually execute the
project.

Let’s start with the definition of S.M.A.R.T. goals:

 Specific: Set specific goals for your project such as deadlines for
key milestones.
 Measurable: Agree on how you will measure success for goals. For
example, is it good enough that you have started laying concrete by
the deadline you set, or should it be completely set by that date?
 Attainable: You need to have a plan in place for how you’re going
to achieve these goals. For example, does your project depend on a
specific material that might not be available at the quantity you
need when you need it? If so, you need to make adjustments.
 Realistic: Your goals need to be within your abilities as a
construction manager. For example, if your project includes plans to
get the electrical work done within three months when you’ve never
done it in less than six months for a project of this size, you’re
setting yourself up for failure.
 Timely: Lay out a specific time frame in which you can realistically
expect that you can achieve these goals.

Now let’s take a look at C.L.E.A.R. goals, which is a slight variation on this
strategy.

 Collaborative: Get everyone on board. Hold a meeting before the

project begins with the entire team to lay out what is expected and
have them help you identify any possible obstacles.
 Limited: Limit these goals both in terms of scope and time frame
to not get overwhelmed.
 Emotional: Ensure that your goals will get your employees fired up
and on board.
  Appreciable: Break up big goals into achievable tasks so you don’t
overwhelm your workers.
 Refinable: Count on having to be flexible, because you can never
predict what will happen on a job site.

Construction software features that can help with this:

Again, you want construction software with a good project management

focus, but in this case you need to get much more detailed with budgets
and timelines, so you need software that has project management as well
as accounting, materials tracking, contractor management, and document
management.

Step 3: Execute the plan

THE QUICK VERSION:

Call a meeting with your team, get on the same page, set expectations,
and assign project managers to oversee progress.

ALL THE DETAILS:

It’s time to execute your plan. Start by calling a team meeting to go over
the project plan and construction schedule. This meeting is critical for
your plan’s success. Without buy-in from your crew, you will fail to
achieve your objectives.

Talk with each person on your crew individually, if possible, to discuss

expectations and give them an opportunity to ask questions about
anything they’re confused about. Is your backhoe operator supposed to
be in daily communication with your engineering team because they’ll be
working in the same area at similar times? They need to know that as
well as what the expectations are in regards to how they will
communicate and when.

You might also need to assign a project manager(s) to oversee your

teams. If you’re a very small business, you may be the only project
manager, but you need to have a schedule drawn up of what you will be
checking and when.

Construction software features that can help with this:

A team management feature will be very helpful for this step. This feature
allows you to monitor task status, work activities, and track time.
Step 4: Track your performance

THE QUICK VERSION:

Gather data on key performance indicators (KPIs) such as objectives,

performance, and quality.

ALL THE DETAILS:

It’s essential that you accurately track the performance of your team on
this construction project and ensure they are meeting the parameters
you’ve set. And in the event of an unsuccessful project, it ensures you
have data that you can dive into to figure out why you failed so it doesn’t
happen again.

Successful construction managers typically use key performance

indicators (KPIs) to monitor the performance of a project.

Some typical KPIs you can track include:

 Project objectives: Are you on schedule and on budget?

 Project performance: Is the project proceeding smoothly, or are you
running into some obstacles you weren’t expecting?
 Quality: Sure, the crew is hitting their milestones, but is the work
up to the quality that you want at this stage?

Construction software features that can help with this:

Many construction software options offer tracking tools, such as materials

management or equipment tracking, not to mention the team-tracking
options mentioned above. Use as many tracking tools as makes sense:
More data is better than less.

Step 5: Close out and evaluate the project

THE QUICK VERSION:

Using the data you gathered, evaluate your performance and talk with
your team on how you could improve on the next project.

ALL THE DETAILS:

Just because the building is over doesn’t mean you’re done with the
planning process. The lessons learned and data gathered from this project
help inform how you approach the next project, so it’s important to
perform the close-out tasks. This work can also serve as some of the pre-
construction planning for your next project.

Thanks to the fact that you had a clearly-defined construction project plan
and a way to track performance and obstacles, you’re well-equipped to
conduct an even more successful construction planning process the next
time around. You’ll know where the obstacles are and what mistakes were
made, which will then inform how you can tweak the next plan in order to
maximize success.

But this shouldn’t be a process that takes place just in your own head.
Call a final meeting with your crew to discuss how you performed.
Conduct a brainstorming session to get ideas on what you could have
done better, and take extensive notes. They’re your eyes and ears, so
don’t lose the opportunity to collect their valuable insight.

To formally close this project out, create a final project budget and
contrast it with the original budget, and then draft a final project report
that you share with key stakeholders.

Construction software features that can help with this:

A good construction software solution should have custom reporting tools

that allow you to process the data you have and create reports that you
can examine after the project to spot where you can make improvements.

Here’s a visual representation of the planning process. Click here to

download a copy.
Start working on your next construction
project plan
Now’s the time to fix your construction planning process to keep your
next project on time and on budget. And it’s a lot easier to do than you
think. Here are a few simple steps you can take tomorrow to improve how
you run your construction projects:

 Evaluate your current construction software. Does it offer the

features discussed above? If not, it may be time to start examining
options that do. Compare solutions and read user reviews here, or
check out our construction software buyers guide for more help.
 Create a mock Project Initiation Document, and ask yourself some
questions: Have I been going into this level of detail before a
project? How could it help me? How could I incorporate this into my
next project?
 Examine your current work schedule. Where can you schedule time
to conduct an extensive planning process that incorporates all of
these steps? Be intentional and carve out some time to do it,
because it’s very easy to allow your time to get swallowed up by
day-to-day emergencies.