Articles
On the Issue of Construction Process Management
At times, while observing construction initially active, well-resourced, and seemingly successful, you become a witness to its decline, a decrease in pace, and sometimes a transition into the gloomy category of "never-ending construction." Over time, the project loses its attractiveness, costs escalate like a snowball, deadlines are pushed, and the reputational costs of project management participants
managing the construction process, who, under favorable initial conditions, failed to achieve the expected results, cast doubt on their prospects.
A sad but often-repeating situation.
Let's try to examine this issue, identify the main causes and common mistakes, and determine ways to restore the status quo.
One of my acquaintances, a distinguished builder, always said: "Construction is politics," and after a short pause, he invariably added: "And big construction is big politics."
In the words of an experienced person, there is a hint of the complex nature of relationships and a warning about the need to consider numerous sharp edges of the "political" life on the construction site.
First, let's define the composition of participants and their goals. The main participants in the management process include the client, designer, general contractor. In the interpretation of these terms, we also include various representatives of these economic entities: the client's service, technical supervision, the general contractor's departments.
It should be noted that our assumption is that the described construction process management system assumes sufficient competence of all participants. We do not analyze the professional aspect in this short article.
At first glance, everyone has the same goal—all participants strive for the building to be constructed on time, meeting quality criteria and reliability, successfully put into operation. This common goal, uniting all participants—partners, is intended to be a stimulus and motivation for harmonious relationships.
However, in practice, many factors have a negative impact, deviating from the initially anticipated high probability of a positive result. The presence of the main goal does not exclude the presence of personal, subjective, personal goals aimed at satisfying hidden interests.
The client—let's assume that he also provides financing, as he persuaded investors and is responsible to them—is interested in finding ways to make more profit within the contractually established amount of investments. Usually, the search is directed towards reducing costs and construction periods, and cases of deception, non-payment of earned amounts by builders are not uncommon. In common parlance, such dishonest clients are called "fraud," and their bad reputation deters contractors and, subsequently, investors-buyers of apartments—if we are talking about a residential building. Lack of integrity leads to irreversible material and non-material losses.
The designer is in contractual relations with the client and is responsible for the compliance of the building under construction with the project. Representatives of this profession usually do not pursue hidden selfish goals. By the beginning of construction, mutual obligations between the client and the designer under the design contract are already fulfilled, and the financial needs of the performer are satisfied. Possible project revisions are minor and carried out during the author's supervision. The designer takes a neutral position towards other participants. The main priority of the project author is to ensure that his intellectual work is duly appreciated, and the idea is implemented.
The general contractor is responsible for ensuring that the project is built on time, in compliance with construction norms and rules, within the contract price established by the agreement with the client. His hidden commercial goal is to increase the contract price (if he can convince the client) or reduce the cost. At the same time, he should not cross the line: excessive savings pose a risk of compromising the quality of work and threaten the reliability of the facility.
The general contractor performs all the main management functions—planning, organization, motivation, and control. Much depends on his competence; a professional general contractor is the foundation of the project's success. He is not interested in exceeding the real deadlines beyond the planned ones, as exceeding them entails additional costs and reduces his profit.
Cases of deception by the general contractor of the client and subcontractors occur, but sooner or later, this becomes known and inevitably leads to dire consequences for the guilty party. Sometimes the commercial interests of the client and the general contractor conflict. The client monitors that the cost and deadlines do not increase and comply with the contract conditions, while the general contractor seeks to raise the contract price, citing arguments about additional works related to project adjustments, rising prices for material resources, and increasing wage levels, etc. If opponents have enough wisdom, they usually find a compromise solution.
It is often necessary to observe the dictatorship of the client, who interferes in the general contractor's sphere, making unsuccessful attempts to perform his functions. This is not limited only to recommendations about subcontractors—which is his right prescribed in the contract. Sometimes the client initiates changes to project decisions, rejecting adjustments to the contract price and terms, imposes his subjective opinion on material replacements, in violation of technological requirements demands a reduction in terms. The main argument of the managerial power of such an immature client is money, and he uses it to delay payment deadlines, impose penalties, and not pay for acts of completed work. If the general contractor does not show enough firmness, the management system is deformed.
Each participant in the management process must act in accordance with their role in the management system, perform assigned functions, and take responsibility within the framework of the concluded contracts. Violations of these conditions result in negative consequences.
Some specialists believe that the fundamental principle of construction process management is autocracy. This approach involves the dominance of one of the participants—usually the client or the general contractor—over the others. An authoritarian style may be justified, for example, in a crisis situation or during a short emergency period that requires a high concentration of forces and prompt decision-making. History shows that dictatorship brings good results in some cases but does not ensure a lasting effect.
In our opinion, the main principle of management is the partnership principle. Only through a complementary combination of competencies and harmonious interaction of all participants can the synergy effect be achieved. However, it cannot be about equal partnership: each partner plays their role in the management system and occupies their place in the hierarchical chain.
Important factors in achieving a positive result are also psychological compatibility, the level of culture and upbringing. If there is misunderstanding or mistrust between the participants, which can easily turn into conflict, the threat of failure to fulfill obligations on the timely delivery of the object significantly increases.
On the foundation of partnership, clear distribution of duties, rights, and responsibilities, compliance with the norms of a healthy corporate culture, respect, honesty, and openness, the experience of joint actions grows, mutual trust is formed—guarantors of common success.
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