Construction project management (CPM) is often considered the foundation of construction projects. Given the number of moving parts, considerations, and stakeholders to keep track of, CPM can be a daunting process, one that requires personnel with a diverse set of skills and deep industry knowledge to be successful—especially for highly specialized industrial projects. 

To assist in project organization, construction projects are often organized into five phases. Each phase is critical to the overall success of the project, and each comes with unique needs and challenges. Depending on who you ask, these phases may have different names—or there may even be a sixth phase—but they all boil down to the same general concepts. 

Let’s dive deeper into the phases of construction project management to better understand how these phases amount to a successful construction project. 

What is a Work Breakdown Structure? 

Before we dive into the phases, it’s important to consider how phases are used during a construction project. Often, these phases will be represented in a phase-based work breakdown structure (WBS). Because construction projects are so robust and complex, a WBS is often used to break the larger project into smaller phases to help better define the workflow and deliverables. 

The WBS can be a “north star” for projects. It’s helpful to have the WBS posted on the job site or available digitally for the team to reference. It’s also important to keep the WBS updated as the project progresses, as this can help ensure projects stay on schedule and within budget.  

Phase 1: Initiation 

The Initiation Phase lays the groundwork for a construction project. This involves establishing whether the project is viable and a good opportunity. It’s this phase that provides the foundation for all other phases to build from.  

Feasibility Study 

Often the first step in the construction project management process, conducting a feasibility study will determine the viability of the project. This involves examining critical areas of the project, including materials, equipment, costs, location, schedule, and legal considerations. 

Project Initiation Document (PID) 

Once a project has been determined as feasible, it’s typical for a PID to be created based on the results of the study. The PID defines the project’s goals and objectives, outlines the scope, and provides a blueprint for how to execute. 

Phase 2: Planning 

Once all necessary documents are drawn up and final approvals are granted, it’s time to move to the Planning Phase. This phase, also referred to as the Pre-Construction Phase, involves developing comprehensive plans for how a project will unfold. 

Identification of Stakeholders and Roles 

Construction projects can have a wide range of stakeholders, from contractors to architects to local authorities. Clearly defining roles and establishing communication channels will ensure all parties understand who’s involved, what each is responsible for, and how to communicate. 

Develop a Detailed Schedule 

One of the core elements of construction project management is keeping projects on schedule. That starts with developing a detailed schedule during the Planning Phase for the team to work against. A visual scheduling tool, such as a Gantt chart, also helps teams monitor progress, identify task dependencies, and improve communication. 

Budgeting and Cost Estimation 

Like scheduling, keeping a project on budget is critical for successful project management. During this phase, teams complete a detailed cost estimate of materials, labor, equipment, and everything else needed to complete the project. Once all estimated costs are tallied, the contracts can be finalized. 

Risk Management 

All construction projects come with risks. Things like weather delays or labor shortages can drastically throw off a project’s timeline, and teams must be prepared to adapt. With good risk management planning, teams will be prepared for these events before the project begins. This includes developing mitigation strategies for specific risks and contingency plans for when issues arise. 

Phase 3: Procurement 

With the project plan in place, the next step is procuring the necessary materials, equipment, and subcontractor services to execute the project. 

Prepare Procurement Documents 

The project manager/general contractor (or procurement manager, if there is one) will prepare requests for proposals (RFPs) and invitation to bid (ITB) documents that outline evaluation criteria, contractual requirements, and other information relevant to potential vendors. 

Vendor Selection 

Next, bids will be evaluated based on a variety of factors, including price, lead time, and experience. During vendor selection, the design team will review all components through submittals to ensure they meet the necessary specifications. 

Contract Finalization 

Once vendors have been selected, purchase orders are issued. Once finalized, procurement details, such as a delivery schedule and material storage, can be determined. 

Phase 4: Execution 

A lot of work led up to it, and now it’s time for the construction to begin. During the Execution Phase, the job site is prepared, and the team carries out assignments based on the project plan. While building the structure is the primary identifier of this phase, there’s a lot that goes into it. 

This phase is where monitoring and control take place. Given the importance of this sub-phase, some identify it as an entirely separate phase of construction project management. 

Tracking Work 

While the work is being done, it must be accurately tracked. This helps keep the entire process running smoothly, ensuring that all stakeholders understand where the project is at. This includes tracking against the schedule and cost and adjusting when necessary to keep the project on time and within budget. Today, many teams opt to use project management software to assist in project tracking. 

Resource Management 

A subset of tracking schedule and budget, resource management is paramount during this phase. Teams must manage the flow of materials and equipment to help reduce the risk of delays. Inventory management services may be utilized to mitigate potential supply chain disruptions and reduce financial risk. Labor must also be managed to ensure the proper amount of personnel is in place. 

Quality Control 

While work is being completed, quality control inspections should be completed to ensure the project is meeting design specifications and complying with building codes and safety regulations. 

Stakeholder Communication 

Communication is a present need throughout the entirety of the project, but it’s essential to regularly communication with stakeholders while the work is being completed. This includes regular updates to the project owner and providing progress reports on the project’s key performance indicators (KPIs). This can often be done through the project management software. 

Phase 5: Closeout 

With the work complete, the last step is the Closeout Phase. This phase is all about ensuring that the project was completed according to all specifications and obligations. This includes: 

• Creating the punch list of all remaining work or deficiencies and completing all items 

• Certifying that all equipment and critical systems work properly 

• Closing out the budget 

• Conducting a post-project evaluation with key stakeholders 

Once this is complete, the project is presented for approval. With final approval received, the project is finished. 

Crescent Electric’s Project Management Services 

The list above, while comprehensive, is just a snapshot of the level of complexity seen in most construction projects. Utilizing the phase-based approach to project management can greatly improve the efficiency and success of a project, but within that is the need to manage unforeseen variables or challenges as they arise. 

If you’re looking for support for your next commercial construction or industrial project, Crescent Electric can help. Our team of nearly 80 project managers can work with your team to ensure your projects run smoothly. From Smartsheet project tracking to StockNOW inventory management, reach out to discover all the ways our team can assist you!