The $2.2 trillion construction industry accounts for 4.5% of U.S. GDP and employs 8.2 million people. This number includes individuals who build 1.6 million homes annually and commercial, industrial and government properties, highways and train systems. Earning a Master of Science (M.S.) in Construction Management, like that offered online through Texas State University, can open doors to critical industry roles coordinating project execution to ensure they are completed on time and on budget.
Construction management is a fast-growing field. The U.S. Bureau of Labor Statistics (BLS) predicts employers will add 47,600 jobs through 2023. That represents a 9% growth rate, which BLS notes as much higher than all career categories. “Project managers are arguably the most important people on any successful construction project,” authors of an EIDA article share, as there is high demand for professionals with advanced technical proficiency, people skills and expertise to lead construction projects.
Resource Allocation, Risk Management and Regulatory Compliance
The M.S. in Construction Management curriculum offered online by Texas State University focuses on the principles and practices of risk management and complex problem solving. It also explores industry-standard methods for integrating information technology into project management and examines business management, communication and leadership qualities essential to the role. Graduates, therefore, are equipped with the tools necessary for successful project completion: advanced understanding in resource allocation, risk management and regulatory compliance.
Effective project managers (PMs) are experts at managing people, materials, equipment and financial resources. That depends on their ability to conduct thorough resource planning, forecast demands and create detailed schedules and progress milestones. They also possess a superior ability to communicate with the team and stakeholders to keep the project on track, monitor and report progress and adjust to address unforeseen obstacles.
Every project involves unique risks. The PM is responsible for identifying them, assessing the chances of them happening and their potential impact and developing contingencies. The project manager must continuously monitor and update risk assessments throughout the project lifecycle, using modern risk management software for real-time tracking and reporting. “By understanding and preparing for risks, project managers can minimize their impact, ensuring smoother project execution and better financial performance,” according to Struxhub.
Finally, construction is heavily regulated by local, state and federal entities. Building codes, safety standards and environmental regulations affect every stage from design to completion. Successful project management includes a comprehensive compliance framework, due diligence and accurate documentation. “Compliance in the construction industry is not only about following rules but also about promoting a culture of safety and accountability,” My COI explains.
Construction Projects Mismanagement
A construction project has many moving parts. If not properly managed, a small problem anywhere in the matrix can cascade into an avalanche of interconnected setbacks and crush a venture. Cost overruns plague most projects, with budgets often ballooning by 20-30% due to inaccurate estimates and unforeseen changes. Nearly 70% of construction projects aren’t completed on time, leading to labor, material and equipment cost overruns.
Quality issues requiring rework eat into profits and damage reputations. Resource mismanagement results in inefficiency. Inadequate planning, disregard for worker safety and communication breakdowns are all problems associated with poor project management. “Without a proper project management system, a major construction project could easily fall into chaos, even if the participants themselves are individually competent and well-organized,” an article on LinkedIn cautions.
Among all of the construction industry’s failed projects, California’s high speed rail is a stand out. With a projected total cost of $33 billion and completion in 2020, the trains still are not running, and the budget has bloated to $135 billion.
What Are Construction Industry Trends in Project Management?
“Emerging technologies, sustainability initiatives, workforce challenges, and data-driven tools reshape how construction projects are planned, executed and delivered,” according to Construction Placements. It continues: ” … understanding and adapting to these changes is critical for staying competitive.”
Artificial intelligence (AI), for instance, is finding its place. PMs use it to refine risk management, schedule the myriad tasks, contractors and suppliers and forecast costs. AI and machine learning algorithms also enable them to adjust decisions on resource allocation more quickly and with greater certainty. Another technical advancement, smart wearables and IoT devices, provides progress updates in real time. The data generated shows that job-site technology supports resource optimization.
Integrating voice, video, messaging and content sharing into a single platform streamlines task management by enhancing teamwork among architects, engineers and contractors. Augmented and virtual reality are being used to permit off-site stakeholders to participate in walk-throughs.
These trends collectively aim to address persistent industry challenges such as project delays, cost overruns and safety issues, while also adapting to the increasing complexity of construction projects.
How to Become an Effective Project Manager in the Construction Industr
PMs in construction are critical personnel because they manage the various moving parts of systems, projects and processes. Without these individuals, projects have no guidance and no leader who can emphasize the greater picture.
An advanced degree in construction management provides graduates with the PM skills to excel. In Texas State University’s M.S. in Construction Management online program, courses focus on project management technology, finances, leadership, decision-making and more in order to set graduates up for success.
Learn more about Texas State University’s M.S. in Construction Management online program.
