Project Management Professionals Benefitting The Construction Companies

There are approximately 80% companies that fail drastically within the first two years and to join the ranks, another 18% fail in the following three years. There are many reasons that account for the downfall of the construction companies, such as the high employee turnover, poor accounting systems, operating expenses going above and beyond, non-competitive approach and the general economic conditions. But, the most important and significant reason is the lack of a project management expert.

The PMP Certification is for those project managers who want to have widespread knowledge. The criterion for qualification and testing is very thorough. This makes the PMP course very widely respected among the other management courses. The PMP training enables an individual to have a better knowledge of the difficult projects entrusted to him. The contractors on the other hand, have a different view point. The contractors are of the opinion that they have a better understanding of the construction projects than the PMPs (Project Management Professionals). There are many contractors in the construction business who have worked hard to place themselves in the higher ups. Following are some of the reasons that differentiates the contractors from the Project Management Professionals. These areas are of great significance when it comes to maintaining the construction project within budget and completing on schedule.

·         Bidding Strategies and Change Orders

The contractors follow a common strategy of bidding with nominal overheads and insignificant profits. It is also dependent on ‘Change Orders’ where  the contractors make their profits. On the other hand, the PMPs have a different view to approach the Change Orders. The contractors have little margin for error whereas the PMPs provide an effective way to manage change orders.

·         Keeping Tasks to the fore than Processes

The contractors look at the project as a series of different tasks. Their motto is to get all the tasks done in the right manner and the project will eventually come together. The PMP training equips the PMPs to think in the provisions of ‘processes’ which enables them to have a more global approach.

·         Claim Management

Claims Management transact with those areas where there is a disagreement. The extra charges incurred due to unforeseen problems that the contractor intends to claim from the owner and the owner takes these expenses as a part of the span of the contractor. The Project Management Professional makes a thorough documentation of the problem, notifies the owner in time along with estimates and justification of the costs.

·         Managing Subcontractors and suppliers

A construction project can be managed effectively only when the crew and the supplies are available on the job site as and when required. Contractors normally deals with their suppliers at the eleventh hour. They expect to get their orders delivered on the same day. With the PMP training, the professionals deal with the owner within the ambit of a buyer-seller relationship.

·         Managing Technical Changes

In the PMP course, the professionals are trained to manage technical changes in a professional manner. The change requests must be processed thoroughly and require estimated impacts on quality, costs or schedule before they approve the change.