Step 5: Administer the Project
Managing a construction project is often the determining factor in whether the effort succeeds or fails. An effective project manager must understand the entire scope of the work, keep sight of the overall objectives, and ensure that the details fit within the broader plan. This requires coordinating personnel, materials, and equipment to meet the project design while staying on schedule, within budget, and minimizing disruption to ongoing operations, even under challenging conditions.
In Tennessee, several project delivery methods are commonly used. The traditional design–bid–build process is the most familiar, with the owner hiring a design engineer to prepare the plans and a contractor to build according to those plans. Another option is design–build, where a single firm is responsible for both design and construction. This approach can reduce costs and speed up the schedule, though it limits competitive bidding. Construction management is a third option and is frequently used in Tennessee for school construction projects, as well as local government and utility projects. Although this method involves hiring an additional party and increases upfront costs, it often results in higher quality outcomes and may even reduce total costs over the life of the project. A more recent variation, the Construction Manager at Risk (CMAR), places responsibility on the manager to deliver the project at or below a Guaranteed Maximum Price (GMP), shifting more financial risk to the manager.
Regardless of the delivery method, every project should have a designated project manager. This role may be filled by the engineer, by a city or utility employee assigned to the project, or by a third-party professional hired on contract. The project manager must be empowered with the authority, resources, and responsibility to act in the best interest of the project owner. Their loyalty should be to the success of the project itself—not to contractors or individual stakeholders. A successful manager must combine technical expertise with strong communication, mediation, and organizational skills.
Tennessee projects typically use several approaches to project management. One option is for the engineer to provide project management as part of the design contract, which offers the advantage of familiarity with the plans but can compromise independence when problems with the design arise. In fact, some funding agencies require independent project managers or Construction Engineering and Inspection (CEI) services to ensure impartial oversight. Another approach is to hire a separate engineering firm for the construction phase, which guarantees independence but sacrifices some knowledge of the design history, sometimes leading to delays in decision-making. Large utilities in Tennessee may manage projects with their own staff, though this is rarely feasible for smaller entities. Finally, many owners choose to hire a third-party project manager. While this adds to the overall cost, the benefits often outweigh the expense. Independent managers provide valuable plan and bid package reviews, unbiased cost evaluations, assistance in selecting qualified contractors, and improved coordination and communication on-site. They also help maintain schedules and ensure that contractors and subcontractors work together efficiently, leading to smoother project delivery and, in many cases, overall savings.