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Construction Management: Full Guide, Statistics

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Construction Management: Full Guide, Statistics


Construction management refers to planning, coordinating, and supervising a construction project from its beginning to completion. It involves controlling the project’s time, cost, and quality to meet the client’s requirements.

This process may include scheduling, cost management, quality management, contract administration, and safety management.

Key Takeaways

Important Takeaways About Construction Management

  1. Construction management involves planning and coordinating construction projects. This involves planning, coordinating, budgeting, and supervising projects from development to completion.
  2. It manages cost, time, and quality. Construction managers use specialized project management techniques to oversee a project’s planning, design, and construction from beginning to end, ensuring projects are delivered within the stipulated cost, schedule, and quality parameters.
  3. Safety is a crucial aspect of construction management. Flawed safety protocols can lead to injuries, lawsuits, and project delays. Therefore, A construction manager must enforce safety guidelines to protect workers and the public.

Job Outlook From U.S. Bureau of Labor Statistics

These statistics were sourced from the U.S. Bureau of Labor Statistics in 2021. See also our article on upcoming top trends for the construction industry. 

Media Salary:

BLS reported a median salary of $98,890 annually or $47.55 per hour.

Number of Jobs:

BLS reported 478,500 jobs.

Typical Entry-level Education

BLS reported a Bachelor’s degree as typical entry-level education. “Construction managers typically need a bachelor’s degree in construction, business, engineering, or a related field.”

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Roles of a Construction Manager

Role Description
Project Planning The construction manager creates project plans and schedules, including defining milestones, deadlines, and resource allocation for the construction phase.
Budget Management The construction manages costs, prepares budgets, and monitors expenses to ensure the project stays within the approved budget.
Resource Management The construction manager manages and allocates labor, equipment, and materials to ensure the smooth execution of construction activities.
Quality Control The construction manager implements quality standards throughout construction, ensuring adherence to specifications and codes.
Construction Oversight The construction manager supervises construction teams, contractors, and subcontractors to ensure work is completed efficiently and safely.
Risk Assessment The construction manager identifies potential risks and develops strategies to mitigate them ensuring the construction project progresses smoothly.
Safety Compliance The construction manager ensures compliance with safety regulations and enforces safety protocols to prevent accidents and ensure a safe work environment.
Communication The construction manager communicates effectively with project stakeholders, including clients, architects, engineers, and senior management.
Problem Solving The construction manager addresses issues and resolves conflicts during construction to keep the project on track and avoid delays.
Change Management The construction manager manages changes and modifications to the construction plan while considering their impact on the project’s timeline and budget.
Progress Reporting The constriction manager provides regular updates on project progress, milestones achieved, and any deviations from the original plan to relevant parties.
Contract Administration The constriction manager manages contracts and agreements with vendors, subcontractors, and suppliers, ensuring compliance with terms and conditions.
Quality Assurance The constriction manager reviews quality assurance processes to ensure the construction meets the required standards and client expectations.
Project Closeout The construction manager reviews project closeout activities, including final inspections, documentation, and handover to the client or end-users.

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Construction Manager Versus Project Manager

Construction Manager and Project Manager are two distinct roles, but they can often overlap in certain aspects depending on the nature and size of the project. Here are the key differences between a Construction Manager and a Project Manager:

The focus of Responsibility:

  • Construction Manager: A construction manager’s primary responsibility is overseeing the construction process. They are more involved in the onsite activities, managing construction teams and contractors, and ensuring the timely and efficient execution of construction tasks. Construction managers focus on the technical aspects of the construction project.
  • Project Manager: A project manager’s role is broader and encompasses the entire project from initiation to completion. They are responsible for planning, organizing, coordinating, and controlling all aspects of the project, including scope, budget, schedule, quality, and risk management. Project managers handle the overall project lifecycle, from initial planning to handover.

Scope of Work:

  • Construction Manager: Their scope of work is primarily centered around construction-related activities, such as managing resources, machine maintenance, labor, equipment, and materials. They ensure the construction is carried out according to the design and specifications.
  • Project Manager: Project managers have a broader scope beyond construction activities. They are involved in project planning, defining objectives, setting project goals, managing stakeholders, and making decisions that impact the project as a whole.

Timeline and Budget Management:

  • Construction Manager: While they may be involved in managing aspects of the budget and timeline related to construction activities, their primary focus is on delivering the project’s construction phase within the given constraints.
  • Project Manager: Project managers are responsible for the project timeline and budget. They monitor project progress, identify potential delays or cost overruns, and take necessary actions to keep the project on track.

Collaboration:

  • Construction Manager: Construction managers work closely with architects, engineers, subcontractors, and construction teams to ensure the construction work is executed as planned.
  • Project Manager: Project managers collaborate with various stakeholders, including clients, senior management, functional teams, and external partners, to ensure project goals align with the organization’s objectives.

Certification and Education:

  • Construction Manager: While formal education in construction-related fields is standard, no standardized certification is required to become a construction manager. Experience and expertise in construction are typically valued.
  • Project Manager: Project managers often hold certifications such as Project Management Professional (PMP) from the Project Management Institute (PMI) or other relevant certifications. They may have a background in various industries and are skilled in project management methodologies.

Project Phases:

  • Construction Manager: Typically involved in the execution phase of the project, ensuring that construction work aligns with design and quality standards.
  • Project Manager: Involved in all project phases, from initiation and planning to execution, monitoring, and closure.

In summary, a Construction Manager’s focus is primarily on the construction aspect of the project, whereas a Project Manager oversees the entire project, including its planning, execution, and successful delivery.

Both roles are essential for successful project completion, and depending on the project’s complexity, a construction manager may report to a project manager or the responsibilities may be combined into one role.

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See Also: Top 10 Construction AI Companies

Importance of Construction Management

Construction management is crucial in the construction industry. It encompasses planning, coordinating, and executing a project, ensuring it is completed within the set timeline and budget and up to quality standards. It involves a multi-disciplinary approach to create a streamlined process, from feasibility and design to construction and maintenance.

Without effective construction management, projects can face overruns in time and budget, leading to potential risks and losses. It helps manage the complex facets of large projects, including legal matters, dealing with clients, personnel management, safety management, and maintaining project integrity. Thus, construction management significantly contributes to the successful, efficient, and effective execution of construction projects.

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Explanation of Construction Management

Construction management, in its essence, is a professional service aimed at mastering the intricacies of the planning, design, and construction of a project from its inception to completion. This specialized form of management is utilized across different sectors ranging from residential, commercial, and industrial to environmental construction projects.

The primary purpose is to control the project’s time, cost, and quality, ensuring that every phase of the project, whether the estimation, scheduling, or construction process, meets standards and goals set by the client while adhering to the legal and safety requirements.

One of the primary uses of construction management is to coordinate and oversee a construction project meticulously. An efficient construction manager takes charge of all the components of the project, which include creating feasible project plans, supervising the selection of the contractors and construction team, streamlining the logistics of building materials and equipment, arranging relevant permits and documents, controlling costs, quality, and delivery times, as well as mitigating risks and potential complications.

Check out EquipmentShare’s construction management equipment below:

This holistic approach to management eliminates any potential bottlenecks or setbacks during the construction process, fostering an environment for seamless project completion and client satisfaction.

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See Also: How 3D Printing Could Revolutionize the Construction Industry

Examples of Construction Management

  1. Building a Skyscraper: In this scenario, a construction management team would handle all aspects of the project from its inception to completion. This includes obtaining necessary permits, planning, budgeting, orchestrating all the involved parties like architects, engineers, and constructors, and ensuring all materials are procured on time and within budget. An example could be the construction management involved in the setting up One World Trade Center in New York.
  2. Constructing a Highway: Construction management in a highway project would involve designing the road’s layout, scheduling tasks and phases of construction, coordinating workers and subcontractors, dealing with environmental impact and safety issues, and working within the set budget and time frame. For example, construction management was integral in developing the Interstate Highway System in the USA.
  3. Development of a Residential Area: A construction management team would oversee the planning and construction of an entire residential district. The team might maintain communication with urban planners, civil engineers, and contractors, supervise the day-to-day activities, and ensure that requirements such as safety regulations and building codes are met. The construction management could exemplify this during the creation of The Villages, a well-known and planned retirement community in Florida.

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Frequently Asked Questions (FAQ)

Q: What is construction management?

A: Construction management is a professional service that uses specialized project management techniques to oversee a project’s planning, design, and construction from beginning to end.

Q: What does a construction manager do?

A: A construction manager plans, directs, coordinates, and budgets activities concerned with the construction and maintenance of structures, facilities, and systems. They participate in the conceptual development of a construction project and oversee its organization, scheduling, and implementation.

Q: What is the importance of construction management?

A: Construction management is crucial because it ensures that every part of the construction project is executed as per plan, taking into account the quality, time, and cost, ensuring efficiency and preventing delays or overrun costs.

Q: What qualifications do you need to be a construction manager?

A: Typically, a construction manager needs at least a bachelor’s degree, often in construction science, construction management, architecture, or engineering. Some jobs may also require work experience in the field or a relevant certification.

Q: How does construction management impact project cost?

A: Good construction management can significantly reduce the overall cost of a project. It achieves this by ensuring efficient use of resources, preventing expensive delays, and ensuring the project stays within the budget.

Q: What are the phases involved in construction management?

A: The phases of construction management are project conception and initiation, definition and planning, project execution, project performance, and closure.

Q: Is construction management a profitable career?

A: Yes, construction management can be a profitable career, with salaries dependent on experience level, location, and scale of projects handled. As per the U.S. Bureau of Labor Statistics, the median pay for construction managers was approximately $98,000 in 2021.

Q: How is technology impacting construction management?

A: Technology significantly impacts construction management by offering digital solutions for project planning, scheduling, risk management, and onsite real-time project tracking. This helps enhance efficiency, reduce costs, and improve communication among stakeholders.

Sources for More Information

Image Credit: EquipmentShare

Brad Anderson

Editor In Chief at ReadWrite

Brad is the editor overseeing contributed content at ReadWrite.com. He previously worked as an editor at PayPal and Crunchbase. You can reach him at brad at readwrite.com.

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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