Construction projects are risky
Project managers ensure project stability through expert management of professionals and consultants Risks exist regardless of the method of project delivery (design-bid-build, design-build or construction management) and the experience of the participants.
At least half of owners are building construction projects for the first time. They frequently fail to take into consideration the progressive effect of many small changes on their costs and schedule. They often rush design and do not take steps to reduce risks before building begins. Buildings are constructed in difficult conditions. The relatively long schedule exposes the process to such risks as supply shortages, strikes and inclement weather.
The role of the project manager is to anticipate and manage risks. Part of this responsibility is managing the many professionals who make a building project successful and encouraging them to achieve their best effort. Project managers do this by systematically applying project management tools on site and in the boardroom every day. Construction involves many different industries:
- Architectural consultants
- Engineering consultants (structural, mechanical, electrical, etc.)
- General contractors
- Specialist subconsultants
Each industry has its own goals and interests. Conflicts are a natural result of differing points of view. Often the "claims industry" will get involved when there is a conflict. The goal of a claims agent is to maximize the revenue of one of the project participants at the expense of the owner. The goal of the project manager is to anticipate conflict and to defuse it before the project is jeopardized.
Expect claims and change orders when
- Work not specified is requested or work is different from contract documents
- Contract drawings and/or specifications are changed, amended, revised, amplified or clarified
- Plans or specifications do not provide enough detail to cost work required
- Work is performed out of sequence
- Work is stopped or interrupted for any reason
- Owner imposes a new, different or shorter schedule
- Site conditions are different than expected
- Drawings and/or specifications are incomplete or inaccurate
- Unwarranted work rejection occurs
- There are increased inspection, test or quality control program requirements
- Owner fails to disclose information or make timely decisions
- Strikes occur
- Weather or other forces of nature interfere
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