The Value of Process Management in Construction

Process management, project management, project management process. What does it all mean? Process management in construction is critical, but no one ever sits down to explain why or how it differs from project management.

To help cut through all the noise, we’re going to take a look at process management in construction and examine why it’s so critical to the success of any construction project. 

We’re also going to discuss the difference between processes and projects so you can be the most informed construction manager out there.

Ready to get started? Let’s go. 

What is process management in construction?

Within the context of construction, a business process refers to a series of activities that are designed to achieve a specific goal. 

These processes are critical for managing projects, controlling costs, and ensuring that projects are completed on time and within budget. A construction business process can be broken down into several key stages, including:

Planning 

This stage involves identifying the needs of the project. You need to assess the feasibility of the project and develop a strategy to achieve the project goals. 

Planning is critical to the success of the project and requires careful consideration of factors such as:

• Budget 
• Timeline 
• Resources
• Stakeholders

Design 

The design stage covers creating detailed plans and drawings that outline the specifications of the project. It’s important because it ensures that the project meets the necessary standards and requirements and that it is designed to be safe, efficient, and sustainable.

Procurement 

Procurement involves sourcing the necessary materials, equipment, and services required to complete the construction project. It requires careful planning and coordination to make sure that the materials and services are delivered on time and within budget.

Construction

Construction is the actual, well, construction of the project. This stage calls for careful management of resources, including labor, equipment, and materials, so that the project is completed, you guessed it, on time and within budget. It also involves managing risks and ensuring that the project is completed safely and to the required standards.

Project closeout

Finally, the project closeout stage includes the completion of all necessary documentation and the handover of the project to the client. Completing this stage requires going through a range of activities, including:

• Final inspections 
• Testing
• Commissioning
• The transfer of knowledge to the client

Process vs. project management

When talking about the construction industry, the words “process” and “project” are seemingly used interchangeably. But there is an important difference between them I want to highlight before moving forward.

Projects are short-term and measurable. There is a clear beginning and end to a project. There may be a budget and specific deadlines that must be met, and you may only ever work on a specific project one time. An example would be, well, constructing something.

Processes are recurring tasks that keep day-to-day operations running smoothly. 

Processes are things like:

• Employee and client onboarding
• Customer lifecycle management
• Sales
• Product development
• Accounting and invoicing

You get the idea. It’s literally impossible to run any type of business without some kind of process management system in place.

If you’re looking for a management tool for one of the listed processes above, you’re better off with one like Process Street.

Process Street specializes in making recurring processes seamless and easy for teams. With it, you can make workflows that can be automated to make everyone’s lives easier and take boring, repetitive work off of people’s plates.

It differs from project management software because it keeps all the long-term information about company processes in one place. It keeps things organized and standardizes everyday business practices.

In construction, projects often exist within processes. You can’t really have one without the other. It helps to take the time to examine what tasks are the most recurring when starting out with process management. 

Process management in construction PDF

If you want more information on process management in construction, you can download a free PDF here. 

It offers a really great breakdown of each of the roles required for the best possible construction process management, which we don’t cover in this post. It also focuses on developing project management processes.

Construction business process flow

The construction business process flow is an essential aspect of project management in the construction industry. 

It refers to the sequence of steps that a construction project goes through, from initiation to completion, and covers all the activities involved in the project, such as the ones we discussed in the first section.

It involves identifying and addressing potential challenges and roadblocks at every stage of the project to ensure smooth progress and successful completion. That’s why we include the word “flow” because a construction process can’t do that without proper planning. 

Common construction business processes

There are several common business processes that companies use to manage projects and ensure their successful completion. 

These processes are essential for managing the complex and often unpredictable nature of construction projects, guaranteeing that they are completed safely, efficiently, and to the required standards.

Project management

One common construction business process is project management. Remember when I said construction projects exist within the processes? This is what I was talking about.

Construction project management involves the planning, organization, and control of resources to hit the specific targets required by each individual job. 

It includes activities such as:

• Scheduling 
• Budgeting 
• Risk management
• Communication with stakeholders 

You can’t stick to your budgets and schedules without proper project management.

Construction operations

Construction operations are a common business process in the industry. It’s a process that involves the actual construction of the project. 

It includes activities such as:

• Site preparation 
• Excavation 
• Concrete placement 
• Steel erection 
• Finishing work 

And, of course, we have to include monitoring. Monitoring is arguably the most important part of construction operations because it helps to make sure that all the workers are safe and that the project is on the right track.

How to manage a construction project step-by-step

Managing a construction project involves several critical steps that must be followed to ensure success. 

Develop a plan

The first step is to develop a detailed project plan. We’ve already talked about this a bit, so let’s list off the key objectives and move on:

• Identify key stakeholders 
• Create a timeline
• Establish a budget 
• Do a risk assessment 
• Identify potential challenges and come up with strategies to mitigate them

Assemble a team

The next step is to assemble a team of skilled professionals, including architects, engineers, and contractors. These people are basically you Avengers, saving your planet business from ruin, so choose wisely.

Take special care to establish clear lines of communication and delegate responsibilities effectively to avoid bottlenecks. It’s also a good idea to hold regular meetings to ensure everyone is on the same page and progress is being made according to the timeline.

A lot of people overlook the importance of this stage, but that’s a mistake. Having a good team you communicate with well can make or break a construction project, so don’t skimp out on this.

Budget, budget, budget

Throughout the project, you have to manage the budget carefully, tracking expenses and making adjustments as necessary. This sounds obvious, but people still need to hear it sometimes.

Any changes to the scope of the project should be communicated promptly to all stakeholders, and a process should be in place to handle any issues that arise.

Monitor

Finally, the project should be carefully monitored during the construction phase to ensure quality control and safety measures are being followed. 

Regular inspections and progress reports should be conducted to keep everyone informed and identify any areas that require attention.

And let me tell ya, I walked past a construction site the other day and saw about 10 violations. I don’t even work in construction and they were obvious to me. Make sure you monitor. 

Construction process management examples

There are several examples of construction process management, including the following:

Building Information Modeling (BIM)

BIM is a digital tool that allows for the creation of 3D models of buildings and infrastructure. It can be used to manage the construction process by allowing project managers to visualize the project, identify conflicts, and coordinate with stakeholders.

Lean Construction:

Lean construction is a management philosophy that focuses on maximizing value and minimizing waste in the construction process. Lean construction involves the use of tools such as Last Planner System, Pull Planning, and Value Stream Mapping to improve efficiency and reduce waste.

Critical Path Method (CPM) 

CPM is a project management technique that involves the creation of a network diagram of activities and their dependencies. CPM can be used to manage the construction process by identifying critical activities and ensuring that they are completed on time.

Earned Value Management (EVM) 

EVM is a project management technique that involves measuring the progress of a project against its planned budget and schedule. EVM can be used to manage the construction process by identifying areas of cost and schedule overruns and implementing corrective action.

Total Quality Management (TQM) 

TQM is a management philosophy that focuses on continuous improvement and the satisfaction of stakeholders. TQM can be used to manage the construction process by implementing quality control measures, involving stakeholders in the decision-making process, and ensuring that the project meets the necessary standards and requirements.

Ready to give process management a try?

If you are ready to try out process management for your next construction project, book a demo with Process Street. We’ll show you how to standardize your recurring tasks to make the planning stage of your project faster and easier than ever before.