The foundation of effective construction project management lies in continuously balancing costs, scheduling, quality, and – in some projects – technological requirements. These factors must already be aligned with the client’s expectations and the defined framework during the preparation phase, emphasize Bence Raschek and Miklós Horváth, experts of the Project Management Office at CÉH zRt.

Preparation is one of the most important phases of any project. Beyond planning, tendering, and administrative tasks, it also includes risk analysis. Such risks may involve shortages of construction materials or contractor capacity, significant price or exchange rate fluctuations, as well as numerous other environmental or technical factors.

In our previous projects, it became clear that the fluctuating prices of construction materials led contractors to calculate higher risk contingencies. This could be mitigated through shared risk-taking — for example, by linking the price of certain items in the contract to the time of procurement and the relevant price indices. This reduced the contractor’s exposure, which ultimately resulted in more favorable bid prices.

A cost-centered approach is common in the construction industry, although it represents only one element of a complex system. Costs should instead be examined over the entire lifecycle — not limited to the material and labor costs arising during construction. It is equally important to transparently present the possible consequences of cost changes, enabling the client to anticipate their impact on scheduling or on the quality of the executed technical content. These project indicators are closely interconnected, so it is essential to analyze them together across different scenarios. To achieve this, it is crucial that the project manager has an institutional framework providing access to data from previous investments and the knowledge base derived from them.

When we speak of a knowledge base, it is important that it not be an isolated set of information residing solely in colleagues’ minds, but a well-structured and well-maintained database. Such databases have proven extremely useful in our projects by making reporting more transparent, reliable, and automatable. With real-time data visualization, the decision-making process is significantly shortened. This allows the client to track changes in key indicators even on a daily basis and make faster, better-informed decisions. This reduces uncertainty and improves the controllability and predictability of the entire project.

One of the most important tasks of project management is to understand client expectations precisely and consistently represent them throughout the entire project — from planning to contractor tendering and execution — as these sub-processes are interconnected and influence one another. For example, a particular construction technology affects price, execution time, operating costs, and sustainability. Parametric design is a major asset in this regard. It allows different solutions to be presented quickly and comparably to the client, enabling decisions based not on intuition but on real data. This approach is also forward-looking in terms of BIM, as plans are prepared with this mindset from the outset. Parametric design enables the creation of higher-quality, more consistent, and more easily analyzable models. In several of our projects, BIM clash detection has already proven to greatly support the optimal placement of mechanical and electrical systems during the design phase and to prevent later construction issues. High-quality design documentation enables the use of 5D BIM, which improves the transparency of tendering and enhances the planning and monitoring of construction processes. As a result, up-to-date, clearly interpretable information is available regarding project progress, making it easier to identify emerging issues early.

A well-functioning project management system ensures full control over every aspect of the construction process. This not only supports the enforcement of the client’s interests but also leads to significant time and cost savings. Through structured and professionally grounded management, projects become more predictable, more transparent, and ultimately more successful.

The article is based on the piece published in HVG.