What Is Construction Project Management?
Construction project management (CPM) is the process of planning, coordinating, and executing a construction project from start to finish. It applies the skills and expertise of traditional project management — including planning, budgeting, scheduling, resource allocation, and risk management — to the construction industry.
Summary Overview
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Construction project management requires a specialized knowledge of the building industry to manage teams, timelines, and budgets across various types of projects — whether agricultural, residential, commercial, institutional, industrial, civil, or environmental. Effective construction project managers must have strong communication skills and a deep understanding of the construction process and industry in order to navigate shifting project demands.
Construction project management is becoming increasingly digital, especially with technologies such as building information modeling (BIM) and artificial intelligence (AI). A McKinsey report from 2023 titled “From start-up to scale-up: Accelerating growth in construction technology” noted that though the construction industry has been historically slow to digitize, funding for construction technology between 2020 and 2022 increased by 85 percent compared to the previous three years, and the number of deals in the industry increased by 30 percent.
To dig deeper into the world of commercial construction projects specifically, check out our complete guide to commercial construction management, which includes advice for managers, certification tips, and an overview of the role compared to general contractors.
For more information on planning for commercial and residential construction projects, check out this complete overview of construction project planning, including expert tips, a step-by-step guide, and downloadable templates.
These construction project management templates in Smartsheet can help you connect every phase of your construction project, from design and bidding to budgeting, scheduling, and monitoring progress.
How to Get Into Construction Project Management
To become a construction project manager, start with a degree or certification in construction management or a related field. Next, gain hands-on experience in entry-level roles and build a professional network. Finally, demonstrate leadership and problem-solving abilities over time to move into management roles.
To learn more about the degrees, certifications, roles, responsibilities, and steps involved, check out our complete guide on becoming a construction project manager, and use these construction project management templates for Excel to help you get started.
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Construction Project Management Software
Construction project management software helps teams plan, track, and manage construction projects by making operations, documentation, and communication more efficient. These tools can simplify complex workflows and allow real-time updates to ensure projects stay within time and budget constraints, as well as ensure clearer communication throughout the project.
“Keep communication flowing. Bad news is just as important as good news,” advises Dan Julien, formerly of Julien Management. “Making sure all stakeholders in the project are aware of what is happening on the job will minimize the phone calls, emails, and conference calls in the midst of trying to fix or recover from an issue on-site.”
Many versatile web, cloud, and mobile apps help streamline communication, simplify document management, and improve efficiency in construction management. When picking a construction project management software, it’s important to consider the software’s features and functionality for your needs, its cost and scalability, its integration capabilities, and whether it provides training and support.
These overviews of construction scheduling software and construction project management software can help you organize and plan your construction projects with the right tools.
5 Phases of Construction Project Management
The five phases of construction project management are initiation, planning, execution, monitoring, and closing. These mirror the phases of traditional project management but are tailored to address construction-specific factors, such as permitting, subcontractor coordination, change order management, inspections, and site safety.
Dig into the full project lifecycle from start to finish with this article on the five phases of project management. Another helpful resource is this chapter on the project management lifecycle from our complete project management guide.
In a construction project, these are the phases of project management:
- Initiation: This first phase of construction project management involves developing and evaluating the business case, then coming up with a project initiation document (PID), identifying key stakeholders, and defining the project scope. A construction project needs to be assessed for its feasibility, which might include site analysis, environmental reviews, budgeting estimates, and securing initial approvals or funding.
It’s important for the construction project manager to be involved with the site from the beginning. “Spend time on the job site observing the work being done and asking lots of questions. Get out in the field, get your boots muddy, and show respect to the trades who actually do the work of getting projects built,” advises Barbara Jackson, author of Construction Management Jumpstart. “It’s important that entry-level construction managers understand the many field elements — such as weather, site conditions, limited lay down space, traffic congestion — that can impact cost, schedule, quality, safety, and other project variables.” - Planning: Next, the project team must create a roadmap for the project. This includes developing construction strategies, such as timelines, budgets, safety protocols, procurement schedules, and resource allocation. A communication plan is also useful for outlining the relationship, expectations, and communication channels between the project team, suppliers, contractor, designer, architects, engineers, consultants, and other stakeholders. During this phase, managers also create a work breakdown structure (WBS), dividing the project into manageable tasks and deliverables.
“In construction management, the more we plan, the luckier we get, and the more successful our project becomes,” says Paul Netscher, author of Successful Construction Project Management. “Planning begins before starting the project, including selecting the best construction methodologies, preparing the construction schedule and program, and organizing resources. It also encompasses daily and weekly planning through the life of the project to ensure all tasks are completed.”
Check out this in-depth how-to guide on creating construction schedules to help you plan your projects effectively.
- Execution: In this phase, physical construction begins. Teams follow the project plan to complete tasks such as site preparation, building, and installation. This phase involves coordinating labor, materials, and equipment to keep the project within budget and on schedule.
- Monitoring: Monitoring should take place in parallel with project execution. During this phase, the project manager tracks safety compliance, cost performance, schedule variance, and other metrics through site inspections, performance reviews, environmental analyses, quality checks on electrical and plumbing, and more. Construction sites are always changing as the project progresses, so managers should create and update field reports regularly.
- Closing: The closing phase involves final inspections, walkthroughs, and handovers of permits, certifications, and occupancy documentation. The project must be formally handed over to the client, and the project manager or construction manager must ensure that all contractual requirements have been fulfilled. The closing phase might also involve post-mortem meetings to discuss what went well and what could have been improved.
Check out this collection of project post-mortem templates to help your team get the most out of your next project review.
The 7 Stages of Construction Project Management
The seven stages of construction project management are design, pre-construction, procurement, construction, commissioning, occupancy, and closeout. Once the team finalizes the design and appoints a contractor, they order the necessary materials and equipment. After completing construction and thoroughly inspecting the building , they hand it over to the new occupant and wrap up the project.
Here are the stages in a construction project management:
- Design: This is the first stage of a construction project. In it, an architect or engineer first assesses the feasibility of the design based on regulations and codes of the building, as well as the number of rooms, the size of the building, and the amount of space. Then he or she creates schematic designs or sketches, researching the type of equipment and materials needed and their costs.
Once this stage is complete, it signals the beginning of the bidding process. In design-bid-build (DBB) contracts, the owner chooses a contractor based on completed designs.
Check out our master class in construction plans — including checklists, templates, and examples — for tips on creating the best blueprints and designs for safety and quality. - Pre-Construction: The owner selects a contractor through a bidding process: either an open bid, used for advertised public projects, or a closed bid, used for private projects where owners solicit bids from selected contractors. Once the bids come in, the project owner considers the contractor price, qualifications, and overall value before making a decision.
Learn how to win contracts like a pro with our master builder’s guide to construction bidding, and get started with this collection of free construction bid templates or this collection of construction proposal templates.
The owner then assembles the project team, which includes a contract administrator, project manager, field engineer, and superintendent. Next, the team gets the site ready for construction by conducting a site examination, testing soil, and identifying any possible risks, such as environmental challenges. - Procurement: The procurement stage occurs when the team buys everything it needs to complete the project. The complexity of this stage depends on the size of the project and the company. Large national construction companies usually have procurement departments that hire labor and purchase materials for hundreds of projects at once. At smaller companies, the superintendent might buy limited quantities of materials from local building supplies or hire a local laborer. Check out our guide to effective construction RFIs to help you clarify all your plans, designs, and construction documents.
- Construction: To kick off the construction phase, the superintendent arranges a meeting with the subcontractors and material vendors to set the ground rules for working together. Then the team begins preparations such as setting up temporary storage facilities, securing the site, developing a materials and handling plan, and establishing safety programs. After that, the team begins construction.
During construction, new circumstances might arise that require formally modifying the original construction plan. Check out this guide to construction change orders for tips and best practices when updating your contract. - Commissioning: Once construction is complete, the commissioning stage begins. First, the project team tests all systems and equipment to ensure they function properly. Then, the team trains the owner’s personnel to operate and maintain the new systems.
- Owner Occupancy: When the owner moves into the new building, the warranty period starts. This ensures that all building components meet the expectations outlined in the contract. There are two types of warranties: express warranties, which are written and included in the contract, and implied warranties, which are required by law.
- Project Closeout: This final phase involves tying up any loose ends. The team formally completes any remaining contractual obligations to finish the project. They might create a project punch list of any tasks that didn’t get accomplished. They might also conduct a post-project review, document lessons learned, archive project documents, or prepare a project completion report.
Check out this guide to construction punch lists for tips, best practices, and templates.
How to Budget for Construction Project Management
To budget for construction project management, follow four key phases: analysis, design, documentation, and execution. Align with your finance team during analysis. In the design phase, gather estimates and compare contractor bids. Prepare permits and approvals during pre-construction, then track costs and change orders during the build.
This comprehensive guide to construction budgeting lays out a detailed four-phase plan for creating an accurate budget for your project.
The Role of Construction Scheduling
Construction scheduling plays a critical role in planning and coordinating project timelines. It outlines when tasks should start and finish, and it identifies dependencies between activities. A well-defined schedule helps you plan, identify potential risks, forecast cash flows, and assess resource requirements.
Check out this step-by-step guide to creating a construction schedule to help you keep your project on track. For more tips, techniques, and templates, check out this manual on applying the critical path method to construction.
What Is Construction Manager at Risk (CMAR)?
Construction manager at risk (CMAR) is a delivery method in which the construction manager completes a project for a guaranteed maximum price (GMP). The manager helps set the GMP during development and design, and is then liable for additional costs.
In addition to acting in the owner’s interest, the construction manager must control construction costs to stay within the GMP. Because the arrangement guarantees a maximum payment, low bids are typically not considered. Instead, the construction manager works toward fulfilling the financial goal through other avenues, while balancing the cost, schedule, quality, and scope of the project.
Learn about effectively estimating construction project costs with this guide to construction estimating methods, and check out this step-by-step guide to creating an accurate construction estimate to build credibility and trust.
Contract and Design Models for Construction Projects
The three main construction project delivery methods are construction manager at risk (CMAR), design-build (DB), and design-bid-build (DBB). In CMAR, the construction manager also acts as the contractor. In DBB, the contractor is selected after the design is complete. In DB, one entity handles both design and construction, often simultaneously.
Below is a table comparing these three delivery methods:
| Feature | Design-Bid-Build (DBB) | Design-Build (DB) | Construction Management at Risk (CMAR) |
|---|---|---|---|
| Number of Contracts | Two:
| One: Owner and design/builder | Two:
|
| Contractor Involvement | Contractor comes on board after the design is complete | Contractor comes on board early and is part of the design and build process | Contractor comes on board early, during the design phase |
| Risk for Cost Overruns | Owner bears the most risk | Design-builder bears the most risk | Risk is shared (GMP set by CM) |
| Construction Speed | Slower (sequential) | Fastest (overlapping phases) | Faster (pre-construction saves time) |
| Cost Certainty | Finalized after bids | Finalized early in design | Fixed with guaranteed maximum price (GMP) |
| Best For… | Simple, well-defined projects | Projects needing fast delivery or single-point accountability | Complex projects needing collaboration and cost control |
What Are the Risks Involved in a Construction Project?
Construction projects are always changing, and that uncertainty comes with risks. These include financial, legal, environmental, and operational risks, as well as risks relating to design, safety, and supplies. Quality control plans can help minimize risks and ensure that construction meets safety and regulatory standards.
Project managers should be familiar with safety management, building codes, and compliance standards in order to develop an effective quality control plan.
Here are the potential risks involved in a construction project:
- Financial Risks: These could involve unforeseen costs such as sudden price changes for raw materials, higher insurance costs after property damage, or on-site accidents. Without proper planning, unforeseen costs can lead to budget overruns.
- Safety Risks: Construction sites might be at risk of equipment failure or workplace accidents, including falls, electrocution, or injuries from malfunctioning machinery. Overlooking safety risks can also introduce compliance issues.
- Operational Risks: Operational or scheduling risks — such as delays in obtaining permits or challenges with unskilled, untrained, or unavailable workforce — are common in construction projects.
- Environmental Risks: Construction projects require effective waste management, pollution control, and protection of local flora and fauna. Failure to consider these environmental risks can impact project costs, schedules, compliance, and reputation.
- Supplier-Related Risks: Suppliers might be late or unreliable, or they might provide faulty materials. Supply chain disruptions due to transportation delays can also affect construction projects, as can labor supply shortages due to strike or injury.
- Design-Related Risks: Incomplete or unrealistic designs — or late change requests from clients — can lead to time-wasting rework..
- Legal Risks: Failure to adhere to safety or environmental regulations can cause noncompliance issues. Accidents or property damage can also cause liability claims. Ambiguous terms in contracts can lead to contract disputes.
Use this guide to creating a risk management plan or download the construction risk assessment matrix for Excel to help you identify, assess, and mitigate risks in your construction project.
Addressing Environmental Impacts of Construction
The environmental impacts of construction affect both the natural environment and the surrounding community. Managing these impacts involves considering public safety and environmental protection, including minimizing waste, conserving energy, using sustainable materials, controlling noise pollution, and preserving cultural or historical artifacts.
Download the Environmental Considerations Checklist for Adobe PDF
This environmental considerations checklist can help you stay on top of impact assessments in any construction project.
Managing Sustainable Building Projects
Managing sustainable building projects requires balancing cost, performance, and environmental goals while making efforts to reduce waste, conserve resources, and ensure compliance with sustainability standards throughout the construction project lifecycle. It can also involve integrating eco-friendly materials or energy-efficient systems
Sustainable building practices can be implemented to all five phases of construction project management:
- Initiation: Incorporate sustainability goals before the project begins. These might include achieving LEED certification or keeping carbon emissions from the project below a certain level. You can also incorporate environmental impact assessments into the feasibility studies.
- Planning: Consider eco-friendly practices, sustainable designs, and green logistics during the planning phase. The construction plan can also include a designated waste management plan.
- Execution: During construction, utilize high-efficiency HVAC, solar panels, regular recycling, or other sustainable systems, and train teams in sustainability techniques.
- Monitoring: Use sustainability calculators to track the energy efficiency and environmental performance of a building. Regular audits can ensure compliance with green standards.
- Closing: Before wrapping the project, organize documentation and reports of all sustainability practices used throughout the project so that you can incorporate lessons learned into future projects.
Construction Sustainability Plan
To create a construction sustainability plan for your construction project, set clear, achievable goals on how you want to reduce the environmental impact of your construction. Then, detail your strategies for achieving and measuring these goals. Make sure you set expectations, train teams as required, and document these processes.
Here is a step-by-step guide to creating a construction sustainability plan:
- Identify Objectives: Decide on specific sustainability goals, and try to ensure that they’re SMART (specific, measurable, achievable, relevant, and time-bound). These could be attaining certifications, reducing carbon emissions or waste, integrating green building design and technology into your construction, or increasing your use of renewable energy.
- Identify Strategies: Lay out specific steps to achieve your objectives. Here are some examples:
- Conduct a waste audit and implement a waste management plan. This might include implementing just-in-time delivery, assembling materials offsite for prefabrication to minimize on-site waste, or exploring lean construction practices to streamline the construction process and minimize waste.
- Using recycled or natural materials for construction can reduce a project’s long-term environmental footprint. Setting up recycling facilities on-site or collaborating with waste management companies can ensure proper disposal of materials.
- Integrating green building design might include harnessing renewable energy in the construction, with features such as smart roofs or daylight harvesting. This minimizes the load on HVAC systems and the use of electricity. You can also harness renewable energy through solar panels, wind turbines, or geothermal systems.
- Create Manageable Steps: Break down your strategies into smaller steps and create a timeline. For example, harnessing renewable energy requires site assessment, technology selection, procurement, obtaining permits and grid connections, budgeting, installation, testing, and more. Waste reduction or converting to recyclables might involve detailed material analysis, research into packaging, installation of on-site facilities, or just-in-time delivery implementation.
- Assign Roles and Conduct Training: Clearly identify which party is responsible for both overall goals and individual tasks. This could be a project manager, site manager, engineer, design director, or operations manager. Each step in the sustainability plan should have an owner. Assigning roles and responsibilities should also include training employees on new technologies, processes, materials, or systems as required, and clearly communicating the sustainability plan to everyone.
- Set Expectations: Establish measurable targets and KPIs for your sustainability plan, along with a timeline. For example, you could aim to achieve LEED certification within a year, reduce carbon emissions by 10 percent within five years, or divert at least 50 percent of a single construction project’s waste from landfill.
- Explore Incentives: Incentives such as tax credits, grants, and rebates are important to research when starting a sustainability initiative for your construction project. Federal or state agencies, utility companies, or other financial institutions might offer funding for different kinds of sustainability practices. Research relevant eligibility requirements, forms, or application deadlines. When you have a sustainability plan, you can incorporate any financial benefits into your overall construction budget.
Download this blank construction sustainability plan template for Smartsheet to help you get started.
Construction Project Management Starter Kit
Use this free starter kit to support your construction project management process. This kit includes a table comparing construction management certifications and a cheat sheet of construction terminology.
Download Construction Project Management Starter Kit
In this starter kit, you’ll find:
- A comparison of construction management certifications for Adobe PDF to help you decide which certificate is best suited for you.
- A cheat sheet of construction terminology and acronyms for Adobe PDF to help you navigate communication and documents related to construction projects.
- A downloadable checklist of environmental considerations for Adobe PDF to keep in mind when preparing a site for construction.
- A construction project management reading list to help you find the best resources for you.
Top Construction Management Books for Beginners
We’ve collected the top construction management books from the past 10 years to guide you through the best resources for students, professionals, and field leaders. Whether you’re a beginner or a practitioner or you’re simply looking to expand your knowledge in the field, these books will help you understand how to move a project through every stage of the process.
- Best Overall:
Construction Project Management: A Complete Introduction (3rd Edition)
By Alison Dykstra (2018)
Dykstra offers an introduction to managing contracted construction projects in 25 chapters, using clear language and real-world examples. The book walks through the early development stage through bidding, selecting a contractor, the construction itself, and closing out. It’s practical, easy to follow, and written from the perspective of someone who’s worked closely with both design and construction teams.
This book is most suitable for students, new professionals, and structured learners.
- Best for Beginners:
Construction Management JumpStart (3rd Edition)
By Barbara J. Jackson (2020)
This best-selling guide provides an introduction into construction management basics, including relevant issues such as sustainability and build information modeling (BIM), and practical skills such as contract documentation and project scheduling. It also includes an aptitude quiz and is very popular in training programs.
This book is most suitable for those starting out in the field, including beginners and those making a career change.
- Most Practical On-Site:
The Lean Builder: A Builder’s Guide to Applying Lean Tools in the Field
By Joe Donarumo and Keyan Zandy (2019)
This book uses a hands-on, field-oriented approach to lean construction principles. It distills these principles into actionable tools that superintendents and foremen can apply directly on job sites. It takes you through practices such as daily huddles, visual communication, and pull planning, and is useful for anyone seeking to boost efficiency and teamwork on active job sites.
This book is most suitable for superintendents, foremen, and field managers.
- Best for Combining Theory and Practice:
Construction Project Management (5th Edition)
By Frederick Gould and Nancy Joyce (2022)
Gould and Joyce combine academic rigor with practical advice from the industry to offer a comprehensive overview of the entire construction process, and a clear, structured foundation in project management. The latest edition includes updated coverage of modern tools such as BIM and scheduling software. It’s useful for those who want a deep dive into current project management methods and technologies.
This book is suitable for both students and early-career professionals, including interns and junior project managers.
- Best for Business-Focused Professionals:
Managing the Profitable Construction Business
By Schleifer, Sullivan, and Murdough (2014)
This book focuses on the financial and operational strategies needed to run a successful construction company, and it explores common causes for contractor failure. It provides practical frameworks for improving cash flow, productivity, and long-term business health, and for protecting a company against risk and downturns.
This book is most suitable for contractors, financial managers, and firm owners looking to build a resilient business.
- Best for Quick Reference:
Construction Project Manager’s Pocket Book (3rd Edition)
By Duncan Cartlidge (2024)
This portable guide provides a thorough overview of construction project management, including a step-by-step guide to taking a project from pre-construction to closure. It covers everything from ethics to digital tools and includes updated information on regulations, environmental issues, and more.
This book is most suitable for project managers, architects, and surveyors who want something for quick reference on-site or in meetings.
- Best for Advanced Students:
Modern Construction Management (7th Edition)
By Frank Harris & Ronald McCaffer (2016)
This popular textbook covers industry best practices and emphasizes lean construction, sustainability, efficiency, and corporate social responsibility. It also covers the integration of building information modeling (BIM) into project workflows in order to improve construction management systems. It has been updated to address the changing ethical responsibilities of construction managers, and includes case studies and discussion topics.
This book is most suitable for undergraduate and graduate students, early-career managers, and educators.
No matter which book you choose, the process of learning about the construction industry is never complete. “Commit yourself to ongoing education,” says Alison Dykstra, author of Construction Project Management: A Complete Introduction. “The construction industry is in the midst of change — cost, project delivery systems, technology, demographics, and perhaps most important, sustainability expectations, are all impacting how projects are designed, built, managed, and financed. Successful construction managers are nimble and informed and understand the implications of these many changes.”
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