When asked a simple question about where to start a project, people often give different answers.
Some shout: "Let’s just sign the contract first, and then KOREMIZ!" Another suggests forming a budget. In Astana, a live cow was once lifted to the top of a building under construction using a crane—perhaps as a form of risk management when all other methods failed.
But seriously, the lack of project management in construction is a major issue for many companies. This chaotic approach leads to disorder, constant rework, and endless delays. On top of that, executives are forced to dive into micromanagement.
The solution lies in adopting a project-based approach, which has been successfully used worldwide for decades. At the core of project management is the PMO—Project Management Office. This is a specialized unit that oversees and manages all project aspects, from initiation to completion.
Here’s some eye-opening data:
How does PMO save construction projects?
Budget Planning and Control
PMO ensures that money doesn’t disappear like water through a sieve. For example, when purchasing materials, PMO helps choose the best supplier and contract type to avoid overpaying.
Risk Management
Construction always involves risks, from bad weather to contractors suddenly disappearing. PMO anticipates these situations in advance and prepares a Plan B (and sometimes Plans C, D, and E).
Communication
PMO acts as a translator between clients, contractors, and architects. Without it, everyone speaks a different language, leading to a "Tower of Babel" scenario.
Schedule Management
PMO ensures that all construction stages follow the timeline. If the foundation must be completed by May 1st and the contractor is late, PMO will find a way to speed up the process or reallocate resources. Without it, the project may turn into a long-term construction site that locals start using as a tourist attraction.
Quality Management
PMO guarantees that construction work meets the required standards. For example, if concrete lacks the necessary strength, PMO will catch the issue in time and demand corrections. Without PMO, you risk ending up with a building that starts cracking within a year of completion.
Stakeholder Management
PMO ensures that all project participants' interests are considered—from clients to local residents. If neighbors complain about construction noise, PMO organizes meetings and proposes a compromise. Without it, the project could face protests or even lawsuits.
Resource Management
PMO ensures that there are always enough workers, materials, and equipment on site. Without PMO, construction can turn into a "waiting for a miracle" scenario, where everyone just stands around looking at an empty site.
Knowledge Management
PMO collects and systematizes knowledge gained during the project. For example, if a method for speeding up asphalt laying is discovered on one site, PMO shares this knowledge with other projects. Without PMO, every project will have to "reinvent the wheel" from scratch.
Integration Management
PMO integrates all project aspects into a cohesive system. If architects, builders, and engineers work in isolation, PMO brings order and ensures seamless collaboration. Without PMO, the project can turn into a "patchwork quilt" where nothing fits together.
Some shout: "Let’s just sign the contract first, and then KOREMIZ!" Another suggests forming a budget. In Astana, a live cow was once lifted to the top of a building under construction using a crane—perhaps as a form of risk management when all other methods failed.
But seriously, the lack of project management in construction is a major issue for many companies. This chaotic approach leads to disorder, constant rework, and endless delays. On top of that, executives are forced to dive into micromanagement.
The solution lies in adopting a project-based approach, which has been successfully used worldwide for decades. At the core of project management is the PMO—Project Management Office. This is a specialized unit that oversees and manages all project aspects, from initiation to completion.
Here’s some eye-opening data:
- According to McKinsey, 98% of large construction projects exceed their budget by 30% or more. PMO helps reduce these numbers by implementing control and planning.
- Research by PMI (Project Management Institute) shows that projects with a PMO are 50% more likely to be completed on time.
- In the construction sector, 70% of delays are caused by poor resource management and communication. PMO ensures that all "gears" in the project work in sync.
How does PMO save construction projects?
Budget Planning and Control
PMO ensures that money doesn’t disappear like water through a sieve. For example, when purchasing materials, PMO helps choose the best supplier and contract type to avoid overpaying.
Risk Management
Construction always involves risks, from bad weather to contractors suddenly disappearing. PMO anticipates these situations in advance and prepares a Plan B (and sometimes Plans C, D, and E).
Communication
PMO acts as a translator between clients, contractors, and architects. Without it, everyone speaks a different language, leading to a "Tower of Babel" scenario.
Schedule Management
PMO ensures that all construction stages follow the timeline. If the foundation must be completed by May 1st and the contractor is late, PMO will find a way to speed up the process or reallocate resources. Without it, the project may turn into a long-term construction site that locals start using as a tourist attraction.
Quality Management
PMO guarantees that construction work meets the required standards. For example, if concrete lacks the necessary strength, PMO will catch the issue in time and demand corrections. Without PMO, you risk ending up with a building that starts cracking within a year of completion.
Stakeholder Management
PMO ensures that all project participants' interests are considered—from clients to local residents. If neighbors complain about construction noise, PMO organizes meetings and proposes a compromise. Without it, the project could face protests or even lawsuits.
Resource Management
PMO ensures that there are always enough workers, materials, and equipment on site. Without PMO, construction can turn into a "waiting for a miracle" scenario, where everyone just stands around looking at an empty site.
Knowledge Management
PMO collects and systematizes knowledge gained during the project. For example, if a method for speeding up asphalt laying is discovered on one site, PMO shares this knowledge with other projects. Without PMO, every project will have to "reinvent the wheel" from scratch.
Integration Management
PMO integrates all project aspects into a cohesive system. If architects, builders, and engineers work in isolation, PMO brings order and ensures seamless collaboration. Without PMO, the project can turn into a "patchwork quilt" where nothing fits together.