Last edited 30 Sep 2020

Management in the construction industry

1 Introduction
2 Construction management
3 Management contracting
4 Commercial management
5 Project management
6 Supply chain management
7 Design management
8 Risk management
9 Time management
10 Change management
11 Contract management
12 Resource management
13 Human resource management
14 Waste management

[edit] Introduction

In general terms, the word 'management' refers to a set of organisational principles and practices relating to the running and planning of a business, project or programme. It involves establishing and following an organisational strategy and coordinating stakeholders, employees and resources to achieve a series of intended objectives.

Management involves the exercise of formal authority within a structured organisational setting directed towards the efforts of other people using systems and procedures.

Management has many applications in construction and the built environment, some of the more common examples of which are set out below.

[edit] Construction management

Construction management is a procurement route in which the construction works are constructed by a number of different trade contractors. These trade contractors are contracted to the client but managed by a construction manager.

For more information see: Construction manager.

[edit] Management contracting

Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop.

For more information see: Management contractor.

[edit] Commercial management

Commercial management generally refers to the process of overseeing and managing a project's finances. It can also refer to the long-term management of business opportunities that will enable an organisation to develop and grow.

Commercial managers maximise business potential in terms of growth and profitability, while monitoring and controlling internal processes as well as managing external relationships with subcontractors, clients, and so on.

For more information see: Commercial manager.

[edit] Project management

A project manager is a specialist advisor that represents the client and is responsible for the day-to-day management of a project. They seldom participate directly in activities that produce the end result but rather strive to maintain the progress and mutual interaction of the project team in such a way that reduces the risk of failure, maximises benefits and controls cost.

For more information see: Project manager.

[edit] Supply chain management

Supply chain management requires a holistic perspective and a view of organisations as parts of a process. It requires the ability to look beyond organisational boundaries, and a recognition of the interdependence of organisations.

Managing the supply chain involves understanding the breakdown and traceability of products and services, organisations, logistics, people, activities, information and resources that transform raw materials into a finished product that is fit for its purpose.

For more information see: Supply chain management.

[edit] Design management

Design management (DM) is the process of managing design through the project lifecycle, in order that project budgets can be satisfied, programmes achieved, and designs properly co-ordinated and communicated.

For more information see: Design management.

[edit] Risk management

Risk management aims to recognise potential problems as early as possible so that the opportunity for taking effective action is maximised. By looking ahead at potential events that may impact on the project and by putting actions in place to address them, project teams can pro-actively manage risks and increase the chances of successfully delivering a project.

For more information see: Risk management.

[edit] Time management

Time management is the process of organising and implementing a strategy related to the time required for work activities on a project. Effective time management is essential to successfully and efficiently meet budget and programme targets, as well as achieving profitability.

[edit] Change management

Change management refers to the preparation and support that is required in the process of organisational change. It provides a structured approach to helping individuals, teams and entire organisations change their approach, attitude, position and responsibilities within an organisation.

For more information see: Change management

[edit] Contract management

Contract management is the process of managing contracts that are made as part of the delivery of a built asset. It involves the creation, analysis and execution of contracts by the parties to those contracts to ensure operational and financial performance is maximised, and risks are minimised.

For more information see: Contract management.

[edit] Resource management

Resource management is the process of planning the resources necessary to meet the objectives of a project. Without proper resource management, projects can fall behind schedule, or can become unprofitable. The objective is to ensure the adequate and timely supply of resources, whilst at the same time maximising the utilisation of resources between projects.

For more information see: Resource management.

[edit] Human resource management

Human resource management (HRM) is the process of managing people within an organisation. In construction, HRM is primarily concerned with ensuring that a project has sufficient human resources, with the correct skill-sets and experience, for the project to be successfully completed.

For more information see: Human resource management.

[edit] Waste management

Waste management concerns how materials will be managed efficiently and disposed of legally during the construction of the works, and how the re-use and recycling of materials will be maximised.

For more information see: Waste management and Site waste management plan.

Designing Buildings Wiki has a wide range of other articles relating to management, including: