The rise of the independent project manager in the U.S.

Posted December 2009

 

A man in a suit with a laptop

An increasingly complex US construction market has paved the way for the external specialist project manager.

The at-risk construction management route has traditionally been dominant in the US, but its limitations have become more apparent as the market has matured.

  • The construction manager's role's is relatively narrow, with some conflict of interest
  • Construction management route does not address the client's broader interests beyond the construction element of the project
  • Today's projects encompass many more stakeholders, more complex funding mechanisms and increased financial risk
  • Greater environmental, legislative, security and health and safety pressures demand a broader focus.

Project management helps the client maximize their investment in the broadest sense.

Advantages of the project management route include:

  • A wider service offering
  • An independent focus, using optimum managerial skills to balance and look after all the client's needs
  • A single point of accountability
  • The project manager ensures a collaborative process between all parties, on behalf of the client
  • These may include the construction manager, architect, engineer, IT, furniture and equipment, security, facilities, migration and commissioning
  • The opportunity to draw on ideas from best practice, to find more creative ways of working.

Why this culture change now?

Project management's acceptance is being driven by these factors:

  • Increased client awareness, exacerbated by time and cost pressures
  • As recession has hit, clients are looking at their cost base, seeking more cost effective methods and ways of working smarter
  • For most clients, real estate is not their core business and may be a one-time-only event
  • Downsizing of internal real estate departments in global client organizations
  • Clients are seeking protection of their financial interests
  • Clients are seeking single point accountability
  • Clients becoming more open to challenging the traditional processes.

Project management principles are influencing construction best practice.

  • Growing industry debate over the adoption of project management principles as construction best practice
  • The Project Management Institute(this is an external link and will open in a new window) (PMI) has historically focused on the general practice of project management. The PMI has not specifically addressed construction, architecture or engineering design
  • This lack of distinction created a divide among management professionals in the design and construction industry
  • The Construction Management Association of America(this is an external link and will open in a new window) (CMAA) has remained the prominent leader in most geographic regions.

PMI and CMAA

In the mid-2000s the US government began implementing core management practices modelled upon the PMI's Project Management Body of Knowledge (PMBOK) principles.

The US Army Corps of Engineers and the US Department of Defense have mandated that all projects under their jurisdiction be managed using the PMBOK principles and methods.

With increased funding to government projects through the BRAC 2005 and the ARRA 2009 plans, there is growing interest in PMI and its core best practices. The PMI issued a Construction Management supplement to their PMBOK in 2008, but this is non-specific and less detailed than the CMAA core competencies.

At Faithful+Gould, the project management discipline is integral to our global service provision. It is not new to our US business; we have pioneered this approach for some years, challenging the norms and benefiting from a global in-house exchange of knowledge and best practice.

Make an enquiry