The difference between Project and Construction Management
What is a Project?
According to PMP BOK (Book of Knowledge) 7, Project is defined as a temporary endeavor undertaken to create a unique product, service, or result.
What is Construction Project?
When this unique product (outcome) is a Physical Asset like a road, bridge, dam, port, ship, or building then the Project is NOT a Service-based endeavor but a Construction-based endeavor called: Construction Project
What is Project/Construction Management?
Project management is the process of leading the work of a team to achieve all project goals within the given constraints.
The goals and the nature of achieving those are what truly differentiates a Construction from Service-based project endeavors.
Project Management (PM) vs Construction Management (CM)
Last week, I asked on my Linkedin account the following question regarding #projectmanagement and #constructionmanagement. Out of 317 Votes (🙏voting), 284 voted that CM is different from the PM.
In my humble opinion, I couldn’t agree more. Below I am listing some of the major differences that I am recognizing:
1. Nature of Business. PM is mainly for Service-based project-oriented companies and not necessarily for #construction companies where design specs prevail over the contractual obligations.
2. Budget Estimation. PM budgets are mainly related to the WBS activities. In CM budgets are estimated by associating direct and indirect resources to BoQs.
3. Procurement — Supply Chain Management. Today, more than ever availability and cost of materials and/or subcontractors’ services are critical factors for construction. #just_in_time procurement/purchasing/delivery defines success/failure.
4. Project Performance. Project Progress and Cost Control require BoQs, WBS, and Cost codes to be well-versioned (updated according to current works) and in sync. Construction in principle has a complex Baseline where the exploitation of resources needs to be monitored closely in order to reveal in-reality Actual vs Budgeted Cost and Progress.
5. KPIs and Reporting. Even though standard #pm KPIs apply, #cm requires an in-depth understanding and control of labor productivity, machinery utilization, and materials availability
The Myth of Agile Construction
Question: Can an Agile methodology be adopted in Construction? Can we integrate an Agile system of principles, methods, and philosophies of doing service-based business like Software development into construction job sites and in the construction industry?
Answer: No. This is not possible at least for the overall construction (project) implementation. The nature of Construction projects is -by definition- waterfall and sequential as one part of completion depends on the success of another (Finish to Start) integral part.
How about the Software that Construction Companies use?
In most cases, Construction Companies use generic ERP systems alongside Scheduling Software (Oracle P6 or MS Project) and engineering-specific tools for Quantity Take Off (QTO), Tendering and Field/Site Management.
Unfortunately, that leads to decoupled knowledge as Cost — Time and Quality are out of sync, and data/process integration is unfeasible.
What is the only solution to Construction Management?
One System that integrates all Project Dimensions (BoQ — WBS — Cost Codes) and safeguards interdepartmental process integrity, Site2Office and Office2Site. ONE SYSTEM FOR ALL ACTIVITIES!
