From building the Pyramids of Giza to the Sydney Harbour Bridge, project management has always been key in construction. It helps teams finish projects on time, within budget, and meet the required standards.

Over the next ten years, the Australian Federal Government predicts that the construction industry will grow by over 160,000 people. As the industry expands and projects get more complex, good project management has never been more vital for construction.

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But First: What Does Project Management Mean?

A project is a one-time job with a clear goal, like building a house, launching a new app, or planning a wedding. It has a start, an end, and a plan to get things done. Unlike daily work, a project is temporary—it finishes when the goal is met.

Project management is the art of making sure the project runs smoothly. It’s about planning, organising, and leading a team to get things done on time, within budget, and without chaos. A project manager keeps everything on track, solves problems, and makes sure everyone knows what they need to do.

A project is a lot like a road trip. You have a destination (project goal), a map (project plan), and a budget. You decide who’s coming (project team), what to pack (resources), and how long it’ll take. Project management is making sure you don’t run out of petrol, get lost, or blow all your money on snacks before you reach the finish line.

Read more about the basic elements of a project here.

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What Is Project Management in Construction?

Project management is used in all construction projects, from small home renovations to huge projects like the Melbourne Metro or building sports facilities for the Brisbane 2032 Olympic Games.

A construction project manager is in charge of managing resources, setting timelines, controlling costs, and handling risks.

Key features of construction project management include:

• Budget management: Making sure the project stays within the budget. This includes both direct costs like materials and labour and indirect costs like insurance.
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• Time management: Completing the project on time, which is tracked using a schedule that may change if there are delays (like bad weather).
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• Quality control: Ensuring the work meets required standards and laws. Often, an independent certifier checks to make sure everything is up to code.
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• Risk management: Identifying potential problems before they get bigger, like legal issues, rising material costs, or safety concerns.

Why Project Management Is Crucial in Construction Projects

Projects are 2.5 times more likely to succeed if project management practices are used. Here are three key reasons project management leads to project success in the construction industry.

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Reason 1. Project Management Helps To Minimise Delays and Costs

Construction projects often face delays, leading to cost overruns. According to a study by the Australian Constructors Association (ACA), 55% of construction projects go over budget and around 40% are late. These delays can be caused by poor project management, lack of resources, or unforeseen circumstances. However, a construction project manager with the right tools and skills can minimise these risks and help keep projects on track. Effective construction project managers who foresee delays or cost spikes can work with the customer to determine whether scope changes can mitigate the risk.

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Reason 2. Project Management Helps Resource Management

Related to minimising costs, efficient resource management is also one of the main challenges in construction. Construction project managers are responsible for ensuring that the right materials, equipment, and skilled labour are available when needed. They coordinate subcontractors, suppliers, and stakeholders to avoid conflicts and redundancies. This is difficult because the Australian supply chain is highly international (materials such as steel and concrete are supplied from countries like China, Indonesia and Malaysia).

For example, the graph below shows the percentage change in the price of building materials since 2019. Following the COVID-19 pandemic, there was a significant period of inflation between 2021 and 2023, causing the price of building materials to skyrocket.

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Reason 3. Project Management Helps Manage Risks

Construction projects involve risks, including work health and safety hazards, regulatory changes, budget overruns, and environmental concerns. Effective risk management allows construction project managers to identify these risks early and take preventive actions. For example, with respect to work health and safety risks, important project documents, such as the Emergency Plan and Safe Work Method Statements are created during the planning phase of the project lifecycle.

Did you know that Australian federal and state governments usually publish their risk management plans online? For example, see the risk management plan for the Sunshine Coast Airport Expansion Project here.

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The Role of Technology in Project Management

Project management tools make modern construction project management easier than ever. This includes Building Information Modelling (BIM), project management software, and mobile apps. These tools help monitor progress, track expenses, and communicate with teams.

For example, the construction of the Barangaroo metro station (as part of the Sydney Metro City & Southwest Project) used a BIM to improve collaboration and minimise costly errors.

Key Skills Required for Construction Project Managers

Project management in construction is a demanding job that requires a wide range of skills. Some of the key skills include:

• Leadership and Communication: Construction project managers lead teams, communicate with stakeholders, and ensure team members are aligned. In a recent survey of project managers by the Project Management Institute, 68% of respondents identified that communication was the most critical soft skill for project managers.
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• Time and Budget Management: Management of time and resources is critical so that projects are delivered on time and within budget.
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• Problem-solving: Construction projects are unpredictable. Construction project managers must solve problems quickly when issues arise.
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• Technical Knowledge: Understanding the construction process, materials, and industry regulations is essential.

How to Pursue a Career in Construction Project Management

If you're interested in a career in construction project management, getting the right qualifications can help you stand out. Many universities offer degrees in this field, but you can also take online project management courses to build your skills. These online courses are flexible and teach you everything you need to know for the job.

Certifications like Project Management Professional (PMP), Agile, or Prince2 are well-known in the industry. Certifications can help you get a better job and earn more money. Online courses make it easy to gain these skills without attending a traditional degree program.

With the right qualifications and certifications, you'll be ready to start your career in construction project management.

Construction Project Management – More Important Than Ever!

Project management is essential in the construction industry to complete projects on time, within budget, and to the required standards. A construction project manager not only handles day-to-day tasks but also works to reduce risks and ensure the project’s success at every stage.

As the construction industry in Australia keeps growing, there’s a higher demand for skilled construction project managers. Whether you're just starting or want to improve your skills, taking an online project management course can give you more career opportunities. Earning recognised qualifications can help you become a key part of successful construction projects in the future.

Want to learn more about construction project management? Join our free Project Management Community here.