Key Takeaways
- Five PM process groups provide the management framework.
- Triple Constraint requires conscious trade-offs guided by priorities.
- GCs manage construction; investors manage the investment.
- Time primary for flips; cost primary for rentals.
Project management is the discipline of planning, organizing, and controlling resources to achieve construction objectives within time, cost, and quality constraints.
PM Fundamentals
Five process groups: Initiating, Planning, Executing, Monitoring/Controlling, Closing. These run throughout the project lifecycle, not strictly sequentially.
The Triple Constraint
Scope, Time, and Cost are interdependent. Changing one affects others. For flip investors, time is primary (holding costs); for rental investors, cost dominates.
Why Investors Need PM
GCs manage construction; investors manage the investment. Both need PM skills. An investor who cannot read a Gantt chart or calculate earned value cannot fulfill their investment management role.
Key Takeaways
- ✓Five PM process groups provide the management framework.
- ✓Triple Constraint requires conscious trade-offs guided by priorities.
- ✓GCs manage construction; investors manage the investment.
- ✓Time primary for flips; cost primary for rentals.
Sources
- PMI Construction Extension to PMBOK Guide(2025-01-15)
- NAHB Project Management for Builders(2025-01-15)
Common Mistakes to Avoid
Treating project management as optional for small renovations
Consequence: Even $30K-$50K projects can lose 20-30% to poor management through change orders, delays, and rework
Correction: Scale the PM effort to the project size, but always maintain basic scope, schedule, and budget tracking for every renovation
Not establishing a communication plan with the contractor
Consequence: Missed updates, delayed decisions, and misunderstandings that cause schedule delays and cost overruns
Correction: Establish weekly communication rhythm: site visit, progress report, budget update, and decision log
Test Your Knowledge
1.What is the primary goal of construction project management for investors?
2.What percentage of renovation projects experience schedule delays?