6 Phases of Construction Project Management Explained

Construction projects are like no other. Each one is unique, having different participants, variable conditions, and one-off requirements. But across them all, construction project phases are strikingly similar.

Project planning in construction is the process of creating a detailed roadmap for building a structure, encompassing all phases from initial concept to completion. Organized plans cover scope, schedule, budget and resources, with clear communication protocols to support informed decision-making. Thorough planning reduces risk, improves efficiency and increases the likelihood of delivering the project on time, within budget and to quality standards.

Key Aspects of Construction Project Planning

Project planning in construction involves integrating various elements that help organize, manage, and execute construction activities efficiently and within defined parameters. Project teams create and refer to these essentials throughout the phases of construction for a successful project outcome.

• Scope Management: Clearly outline and oversee project objectives, requirements and constraints.
• Timeline and Schedule: Develop a realistic timeline with milestones, deadlines and task dependencies.
• Resource Allocation: Identify and effectively assign necessary labor, materials, and equipment.
• Cost Estimation: Accurately forecast project expenses to maintain the budget.
• Risk Management: Identify potential issues and create mitigation strategies.
• Communication: Establish clear information flow among all stakeholders.
• Work Breakdown Structure (WBS): Break down the project into manageable tasks.
• Critical Path Method (CPM): Identify the sequence of critical tasks impacting the project timeline.

Now, let's take a look at the six main phases of construction project management common across most project life cycles.

1. Project Design

The construction phases of a project’s life cycle begin with its design. Here, the owner builds the case for constructing the project,  bringing in consultants to help determine costs, financial rationale and technical considerations. Sometimes, after all is considered, the owner might find the project is not workable. If the project does move forward, an initial project charter — a short document outlining the project's goal, scope and stakeholders — will be created.

Making a Business Case

Whether it’s a high-rise office building or a low-rise multifamily housing project, owners must always satisfy a business case for the project. In this part of the design phase, the owner envisions the property’s use and the financial incentives for that use.

Conducting a Feasibility Study

The feasibility study either convinces the owner the project is possible, flags it as needing adjustments, or shows it as a no-go. In this part of the design phase, the owner considers variables ranging from land use to construction costs while fine-tuning the best use. If the project is deemed possible, then it moves into the next phase.

Defining the Project Scope

In the scoping phase, the owner works closely with architects, engineers, and sometimes even contractors to decide the project size and features. Having determined the feasibility and business case for the project lays the groundwork for determining the project scope. The goal is to match the finished project to its immediate use after construction and to accommodate additional uses as the project ages. At this phase, the design team renders all the drawings and specifications needed to build the project.

2. Procurement Planning

With the project plans completed, the owner moves the project to the next phase. In this second of the construction project phases, the goal is to assemble the team that will do the construction.

Selecting the Delivery Method

A prime consideration for any project is the delivery method. Until the last decade, owners almost always chose the design-bid-build delivery method. Today, more and more projects are opening up to design-build and integrated project delivery. These collaborative construction processes lead to lower costs and better project outcomes. The owner chooses the delivery method that will best fulfill the project’s goals.

Selecting Participants

The owner often selects project participants by inviting contractors or construction managers to bid on the project. Sometimes the owner may already have a working relationship with particular contractors, like is often the case with corporate owners, so they will invite them to the project.

Sometimes contractors submit hard bids to win the project, while other times, the contractors and owners work together to design and price the project. In all cases, the owner is trying to achieve the best value for the money while rendering the project as close to their original intent as possible.

Awarding Contracts

Awarding contracts is the last part of the procurement planning phase. The owner must weigh multiple factors in selecting the builder. Price is a top consideration, but the builder’s track record, its ability to insure and bond for the project and the builder’s experience with similar projects all figure into the decision. The selected contractor will negotiate and contract with vendors and subcontractors to fulfill the project requirements as the project heads into preconstruction.

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3. Project Preconstruction

With contracts signed, the general contractor or construction manager gets to work on all details needed to start construction.

First, they must round out the required help. Most GCs and CMs will come to the job with a group of subcontractors already known to them. However, specialty aspects of the project often require them to locate and partner with specialists. The GCs and CMs spend much time at this phase bringing people, materials, and equipment together, and planning everything out.

Obtaining Permits

Few localities exist where you don’t need permits for construction. Contractors get to work pulling permits for everything from utility work to building code requirements.

Site Surveying

Contractors consult site surveys to confirm their understanding of what already exists on the construction site. These surveys often find conditions that weren’t included in the contract documents. This is the first opportunity contractors have to record and begin managing the inevitable surprises inherent in any construction project.

Creating a Risk Management Plan

Almost all contracts today require the contractor to have a formal risk management plan. The contractor must assess all the project risks and make plans for eliminating them, controlling them or insuring against them. Besides protecting the owner, these plans help the contractor foresee and avoid surprise costs arising from risks. For instance, the plan should include mitigation strategies for identified risks, such as shifting work schedules in the event of potential supply delivery delays.

Setting up a Safety Plan

While safety is also a risk item on construction projects, contractors usually deal with it separately because safety risks are so far-reaching. They often involve life and death, so contractors want to make them a top priority. 

Creating Work Breakdown Structures

Contractors break construction projects into activities and tasks. Activities are the units of construction, like pouring the foundation. Tasks are the steps needed to complete those activities. A work breakdown structure (WBS) lists all the tasks needed for each activity. Many construction projects have thousands of activities, so the WBS creates a clear roadmap from project start to project end.

Designing the Project Schedule

It’s the project managers' and schedulers’ jobs to turn the WBS into a schedule that work crews can follow. The schedule reflects the longest time to project completion. It includes milestones so managers can assess how well the project is hitting its schedule. 

Setting up a Communications Plan

Construction contracts often require contractors to have a communications plan that meshes with the project comms plan. Here, the contractor specifies how required and time-sensitive communications should take place, establishing clear protocols for all stakeholders involved. They also include accountability controls so parties to the contract know their responsibilities for communicating project information.

4. Project Execution

The fourth phase is where all the earlier work gets validated — or not. As plans meet reality, teams need to implement the communications plan, keeping stakeholders in the loop as adjustments to the plans become necessary. Teams need the flexibility to accommodate changing circumstances while maintaining quality standards. 

Preconstruction Meetings

Contractors kick off the project with preconstruction meetings. During these meetings, all the parties review the project so they understand their roles and how they fit into the wider project.

Procuring Resources

GCs and specialty contractors procure all the materials, parts and equipment needed for their portions of the work. They also set up their work crews and labor management plans.

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Starting Activities

This part of the project execution phase is where the physical work begins. Contractors take virtual, or 2D plans, and turn them into 3D.

5. Project Control

Without controls, construction projects can get gravely sidetracked. There are too many moving parts and too many variables to operate without controls. While keeping a close eye on work quality, schedule and budget, it’s also necessary to monitor and mitigate risks as laid out in the risk management plan.

Tracking Work

Once construction is underway, this is the most important of the construction project management phases. Without adequate tracking, it’s very easy to lose control of the activities. This is where many PMs rely on web-based construction management software because it’s always on and has the most recent project information.

Tracking Activities Against Time Objectives

Each construction schedule sets a time limit for each activity. Getting done early can sometimes throw a timeline off as much as getting done late, so project managers want to see how closely crews are hitting the scheduled times.

Tracking Quality of Activities and Tasks

Rework and change orders fill the day without quality checks. Each task must meet the assigned quality. Otherwise, tasks coming after can also miss the quality mark.

Adjusting the Schedule

As project managers pore over the times and quality aspects of projects, they sometimes must adjust the schedule to reflect the project’s latest trajectory. Adapting schedules effectively to address design or scope changes demands strong change management skills.

Tracking the Budget

All parties working on the project have their own budgets to track. However, the GC or CM must also track the overall project budget. If the budget looks like it might start running in the red, the GC or CM must find the reason — and quickly.

6. Project Closure

Delivering the Punch List

The punch list shows all the problems with the job that must get corrected before closeout. Crews work on the portions of the punch list that match their specialties.

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Commissioning

For projects involving buildings, this closeout aspect certifies that all the equipment and systems work properly.

Budget Closeout

Closing out the budget means that everyone can receive the final monies owed to them. If the owner and GC have withheld retainage, then this lump sum also comes due.

Post-project Evaluation

Identifying lessons learned involves analyzing project documentation, conducting team debriefs and gathering feedback from clients and stakeholders to identify strengths and areas for improvement to guide future project strategies.

Building Framework for Project Planning

It’s no coincidence the early construction project phases are more mired in detail than the later ones. Wise owners and contractors have figured out that an ounce of planning can cancel out many pounds of rework and mistakes. The construction project phases provide the framework for well-planned projects.

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