Change Delivery When There Are Problems Of A Technical Error Construction Companies Benefit From Project Management Professionals (PMP)

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Construction Companies Benefit From Project Management Professionals (PMP)

Eighty percent of construction companies fail within the first two years, while another 18% fail within three years.

There are many reasons why a construction company is in trouble, including financial problems, lack of competition, high costs, accounting, or high turnover, but nothing affects the construction industry like a lack of project management skills. .

The Project Management Professional (PMP) certification is for project managers with extensive experience. Qualifications and testing procedures are rigorous, making it a highly respected certification. In most cases, construction is managed by contractors, not by certified Project Management Professionals (PMPs).

Contractors may say that they are the only ones who understand construction, because they have been there and done it; but, is that opinion correct? Where does the need to be hands-on end, and the need to have project management skills begin?

Most of the contractors, whether they were professionals or technicians (plumbers, electricians, etc.), did their own construction work. This means they started out as students, became journeymen, maybe promoted to chief of staff or project manager with company owners, then went out on their own to start their own company and become contractors.

Here are five areas that contractors and Professional Project Managers consider differently. These areas can make or break a project, especially when it comes to completing the project on time and on budget:

1 – Marketing Strategies and Change Ordering

The world of construction is very competitive, especially in today’s economy. Every job out there has multiple contractors bidding, lowering prices and removing profit margins. A common method used by many contractors today is to bid the job with a low profit and no profit, based on "Edit Rules" to make their profit.

While this method works, it may not be as efficient as most contractors would like. Ordering a job in this way means that nothing goes wrong. Even a small mistake in sizing, costing or planning can turn a project from profitable to unprofitable.

If the project is being offered under contract, then good thinking should go into how to do it "Edit Rules" when it happens. Project Management professionals approach Change Orders with different perspectives, as they see these as early stage changes "Fix it" and seek to integrate change into the whole system instead "hold it on top of" a work in progress.

Legal changes may require re-estimation of prices, revision of new schedule, revision of activities, additional assessment of risks and even calculation of the number of consequences. Therefore making a "Change Management" The process and integrated change control provides a useful way to centralize management and write change rules, while providing the opportunity to increase profit margins.

2 – Demand Management

Although this may seem similar to the rules of conversion (mentioned above), it is actually a different place. "Edit Rules" deal with changes agreed upon by owners and contractors. "Desires" deal with areas of conflict. These are additional costs due to unforeseen problems on the project, which the contractor wants to recover from the owner at the time of closing. What makes these claims difficult is the difference in the definition of the project. The owner may think that these unexpected events are part of the scope of the contract, while the contractor may see them as additional costs that they have purchased, for things that they cannot control.

Managing forecasts effectively requires documenting the problem, sending timely notifications to owners, including cost estimates and schedule results, and creating a sound justification for payment. This is one of the most difficult communication problems in construction. Project Management professionals are trained to handle claims, while general contractors are often at the mercy of the owner.

3 – Thinking "Work" instead of "The way"

Eighty percent of construction companies fail within the first two years, while another eighteen percent fail within three years. It is not a lack of knowledge in construction, but a lack of knowledge of how to manage their work. This article explains how construction companies benefit from Certified Project Managers.

The architect or construction manager is like that because he knows how to get the job done. But, this is not the same as knowing how to run the job. They see a project as a series of separate tasks; do all the work well and the project will come together.

However, Project Management Professionals (PMPs) are trained to think critically "way." This thinking creates a global approach to the project, seeing individual projects as only part of the process. This significantly changes their approach to project management, to see how things work together and not so much with a "gut feeling," but as a continuous process, filled with risks that can be tested and difficult, in pursuit of another goal. There are aspects of this PMP concept, such as Communication Management, Risk Management and Time Management that are not directly related to the ability to swing the hammer:

– Not knowing how to install a "Systematic Communication" clearly defining how to communicate the right information to the right stakeholders at the right time can doom a company that just went down the drain.

– Not knowing how to make a "Risk Management Plan" or "Accident Register" This work, including how to deal with those risks, whether it is to reduce them, eliminate them or change them, can be deadly.

– Not knowing what services are on your site "The Hard Way" it can increase your time (and therefore money) enough to make your profit minimal or non-existent.

4 – Managing Technological Change

In addition, communicating and managing technical changes, such as changes to building plans or equipment drawings, requires a thorough, well-documented process to ensure that everyone is informed of the change. These technical changes can be as small as a change in paint color to something as large as causing a skyscraper to collapse in a hurricane. Regardless of the size of the change, each one is important to the owner, seeking the right combination and implementation.

As part of their training, Project Management Professionals learn that change requests must be followed by a proper process that may require evaluating the impact on cost, quality or process before approving the change. Coordinating changes throughout the project, and documenting all results or technical changes should be second nature to any project manager who wants the project to be successful and profitable.

5 – Control of Suppliers and Subcontractors

A major part of construction management is ensuring that workers and equipment are on site when needed. General contractors deal with last-minute buyers, calling in their orders and expecting same-day delivery. Their approach to dealing with subcontractors has more in common with browsing than with any formal management philosophy.

When construction is properly managed, a project plan is created before the first person shows up on site. This schedule is maintained and updated as needed, whether due to weather, construction delays or other operational problems. With an accurate project schedule, there is no need to deal with vendors and subcontractors at the last minute. Everything can be planned and communicated to the right people in advance.

Another problem with managing subcontractors is that when problems occur, the buyer (contractor) has access to the money they pay for the problem of the seller (sub-contractor). The procurement contract must contain conditions that the contractor specifies to ensure that the contractor is willing to deliver. By including the right terms and conditions in subcontracts, many problems can be avoided.

As part of the Project Management Professional course, "Asset Management" it is discussed in the perspective of the buyer-seller relationship. This relationship is found in many areas, including the evaluation of the performance of sub-contractors. These measures indicate whether the sub is performing according to plan, evaluate performance, create a basis for terminating the sub’s contract, and apply penalties, fines or incentives.

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