Construction management: overcoming key challenges and top construction management software

Effective construction management keeps projects on schedule, within budget and in line with quality standards.

Without a structured approach, even the best-laid plans can face costly setbacks. Important details can get lost, leading to delays, budget overruns and costly rework.

In this guide, you’ll learn how to overcome these challenges and which tools can set you up for success.

What is construction management?

Construction management is a field of project management that involves planning and overseeing construction projects from start to finish. Construction managers coordinate resources, timelines and budgets to complete a project safely and within scope.

“Within scope” means completing the project according to goals from the project plan. The work stays within defined boundaries, avoiding extra tasks or changes that weren’t planned (known as scope creep).

For example, if a construction project’s scope includes building a two-story office, adding a third floor would be outside the scope

How does construction management work?

Construction management streamlines projects by coordinating resources, schedules and stakeholders. It covers every phase – from planning to execution – while managing risks, compliance and quality.

Here’s a breakdown of how a construction manager moves through the process:

What skills do you need for construction management?

Construction management services require a blend of technical, organizational and leadership abilities to oversee projects successfully. Key skills include project planning, team leadership and effective communication.

Take a look at these skills (and others) in more detail:

• Project planning skills. Ability to define project goals, create timelines, allocate resources and manage risks to ensure successful project completion.

• Technical skills. Technical knowledge of construction methods, materials, regulations and software tools (like AutoCAD). Knowing the fundamentals of project management methodologies (like agile project management) also helps construction managers plan and execute construction projects.

• Leadership and management skills. Capability to lead and organize teams, make decisions and manage time effectively. Strong leadership ensures the smooth execution of tasks to keep the project on track.

• Communication skills. Ability to deliver clear communication with stakeholders, clients and team members. Clear communication aligns workers, manages stakeholder expectations and prevents misunderstandings.

• Soft skills. Confidence in adapting to challenges and solving problems. These skills allow managers to respond to unexpected changes during building construction, like weather disruptions.

• Organizational skills. Eye for detail and ability to manage multiple tasks and timelines. These organizational skills prevent errors and keep projects on track.

Key challenges in construction management (and how software can help)

Construction managers often face challenges like budget overruns, scheduling delays and resource mismanagement. The right software alleviates these challenges, helping construction managers plan projects and track progress.

Here are some of the key challenges in construction management:

Project delays

Construction projects often run behind schedule due to unforeseen circumstances, such as labor shortages or supply chain issues. These delays can lead to increased costs and strained client relationships.

For example, a building project might face delays because of a shortage of materials like steel or concrete. Without real-time tracking, managers may miss the issue and struggle to find new suppliers.

How software helps: Construction management scheduling software tracks costs and changes. If changes happen, you can quickly shift resources, adjust deadlines and inform stakeholders.

With Pipedrive, for example, you can track costs, timelines and supply chains in real time. You can adjust due dates and reassign responsibilities if unexpected changes (like material delays) occur.

You can also automate notifications to alert teams of schedule changes. These alerts ensure everyone, from contractors to suppliers, is aware of timeline adjustments. This clear communication reduces confusion, boosts accountability and keeps the project on track.

Here’s an example of how these notifications appear in Pipedrive:

Budget overruns

Poor cost estimations, unexpected expenses and inefficient resource allocation can lead to overspending. Without cost tracking, expenses can get out of hand, causing financial strain and project delays.

Say that you’re planning a residential construction project. During the planning phase, you estimate the cost of materials. These costs rise unexpectedly and you don’t spot them because there’s no real-time budget tracking.

As a result, the project runs out of funds before completion. When this happens, your firm either covers the extra costs or stops work until you secure more funding, delaying the project. Neither scenario is ideal.

How software helps: Budgeting tools track costs. If we use the above example again, a budgeting tool will let you know when the costs of lumber and steel increase. Then, you can either re-evaluate your suppliers and materials or adjust your budget.

Budgeting software also provides valuable reports and insights. It helps construction managers identify spending trends and make decisions to stay on budget.

Look at Pipedrive as an example. The software lets you track budget changes at each project stage. As a result, you can spot cost fluctuations early and adjust before costs get out of hand.

Communication breakdowns

Poor communication can lead to misunderstandings, missed deadlines and costly rework. When contractors, suppliers and project teams can’t communicate effectively, it’s easy to lose critical information (like delivery methods or design changes).

Picture this: an electrical engineer makes a last-minute design change to a building’s electrical layout. A general contractor performs the work but is unaware of the change. Instead, they proceed with the original plan.

This mistake leads to incorrect wiring installations that must be redone, delaying the project and increasing labor and material costs.

How software helps: A central source of truth helps you avoid miscommunication about project delivery.

With a CRM like Pipedrive, for example, you can store all project documentation in one location. As a result, construction team members can see all the relevant and up-to-date information.

They can also contact other team members for updates or share new information with colleagues.

Here’s an example of how Pipedrive tracks client interactions:

A centralized communication system also helps you spot errors early. You can then make corrections before they become even more expensive and time-consuming.

Managing complex documentation

Disorganized or outdated documents in construction management, such as contracts, permits and blueprints, can cause compliance issues, unsafe buildings and project delays. Given the volume of documentation in construction management, effective organization is essential.

Say that a contractor uses an outdated blueprint. As a result, they install structural components incorrectly. Their efforts need reworking, causing delays in project completion. These incorrect works could also lead to fines and legal issues.

How software helps: Document management systems store files digitally, offering a single source of truth. Teams always access the latest versions of contracts, blueprints and permits, eliminating confusion.

Software also updates documents instantly. With tools like Google Drive, any changes appear instantly – from edits to uploads. So long as team members have internet access, there’s no chance of missing key updates or documentation.

Here’s how documentation appears in the Google Drive Pipedrive integration:

Quality control issues

Ensuring construction quality can be challenging, especially when managing multiple teams and subcontractors. Without proper tracking, teams may miss defects, causing problems later in the project.

Imagine that a subcontractor installs faulty plumbing. If there’s no quality control check, the issue goes unnoticed until after sealing the walls.

When someone finally detects the leak, repairing the damage requires tearing down walls. Not only does this delay project completion, it significantly increases costs.

How software helps: Inspection tools help you keep up with quality checks and compliance tracking. Issue logging and automated checklists are a couple of features that help:

• Issue logging lets teams document defects immediately. They can also attach photos and assign corrective actions to subcontractors. It speeds up the resolution process before issues escalate.

• Automations standardize quality control by creating checklists at each phase of the project. It ensures you don’t forget critical checks so the project can progress safely.

Using these features streamlines inspections to prevent mistakes and keep projects on schedule.

Resource allocation

Poor resource management can cause huge inefficiencies in construction projects. Wasted time, increased costs and project slowdowns are a few common hurdles.

Misallocating labor, equipment or materials are a few examples of poor resource allocation. For example, if workers arrive but critical materials are missing, they can’t do their work. Procuring the missing materials adds extra time to the project completion and increases costs.

How software helps: Resource management tools help construction managers track materials, workers and equipment. As a result, they can ensure that materials and other items are available for use at the right times.

For example, construction software can monitor material supplies and send alerts when stock runs low. Managers can then order materials on time so work doesn’t stop.

5 best construction management software solutions

Choosing the right software helps keep construction projects on track, within budget and to the required safety standards. The best tools offer features like tracking, resource management and easy communication.

Here are five top construction software management solutions to help managers deliver projects.

1. Pipedrive

Pipedrive is a sales CRM that helps businesses manage pipelines, track leads and automate sales tasks. Construction managers use Pipedrive to streamline project workflows, track client communications and automate tasks.

Pipedrive’s construction CRM features include:

• Centralized communications. Pipedrive consolidates all interactions – including emails, calls and messages – into a single platform. Nothing gets lost across different platforms, which improves transparency and keeps everyone on the same page throughout the project.

• Timeline and budget management. With Pipedrive’s project management CRM, construction managers can create project timelines, track progress and ensure that activities are within scope. If things go off track, you can quickly identify the issue and make adjustments.

• Third-party integrations. Pipedrive integrates with third-party tools that support construction management, such as document management systems, accounting software and project scheduling tools. These integrations let construction managers streamline all project elements, improving efficiency and reducing errors.

• Workflow automations. The CRM automates repetitive tasks and sets reminders for key deadlines, helping construction managers stay on track. It can send follow-up emails, remind team members of inspections or alert managers if tasks are delayed.

• AI-powered activities. Pipedrive’s AI features analyze historical data and provide recommendations for improving workflows and allocating resources more effectively. For example, AI can predict potential delays based on past projects and help prioritize high-value deals. The AI email writer also streamlines email follow-ups and summaries, saving time and improving communication efficiency.

• Manage construction projects from anywhere. Pipedrive’s cloud-based CRM allows you to access important customer data, track progress and contact suppliers from any location. Pipedrive’s mobile app lets you plan, review past conversations and take notes on the go, whether you’re on-site or in the office.

Here’s a real-world example of a construction company using Pipedrive:

Bao Living, a construction company focused on sustainability, uses Pipedrive to manage its key sales and project management activities, ensuring full visibility and coordination throughout the sales process.

Pipedrive helps the company navigate the construction industry’s long and complex sales cycles, engaging with prospects and converting them into customers.

Pipedrive’s automation also helps Bao Living streamline its communication and lead management, allowing the team to focus on delivering sustainable living solutions.

Procore is a cloud-based construction management platform designed specifically for the industry. The construction system offers ease of use and wide functionality.

Construction teams often use different platforms for parts of the construction process. Scattered spreadsheets, emails and reports make tracking progress, sharing updates and ensuring alignment difficult.

Procore helps by centralizing the construction management process from project planning and communication to budgeting and compliance.

It also has real-time collaboration features, mobile accessibility for on-site teams and integrations with industry-specific tools.

Procore’s key features include:

• Construction project management dashboard. Get real-time updates on schedules, tasks and progress to keep all stakeholders aligned.

• Document control. Centralize all project documents, ensuring teams can access the latest blueprints, contracts and compliance records.

• Budget and cost management. Track project expenses, forecast costs and prevent budget overruns.

Because of its robust functionality, it’s a good fit for larger organizations (although it’s still useful and usable for smaller companies).

3. Contractor Foreman

Contractor Foreman is an all-in-one construction management software that combines project management, estimating, scheduling and financial tracking into a single platform.

Unlike solutions that cater to larger enterprises (like Procore), Contractor Foreman offers an affordable alternative for smaller teams.

Contractor Foreman’s key features include:

• Daily logs. Streamline project tracking by recording daily activities, weather conditions and work progress.

• Team chat. Foster instant communication across the team, improving collaboration and reducing delays caused by missed messages.

• Client portal. Give clients access to project updates, schedules and documents, improving transparency and customer satisfaction.

Many construction management tools require extensive training before teams can use them effectively. For small to mid-sized construction companies, this can be a major barrier. Time spent learning a complicated system is time taken away from actual project work.

Contractor Foreman offers a user-friendly interface. As a result, contractors and field engineers can easily use the software without a steep learning curve.

4. PlanGrid (Autodesk Build)

PlanGrid helps construction teams manage blueprints, plans and documents on-site. It’s designed to simplify document collaboration, reduce errors and keep teams aligned across all project phases.

PlanGrid’s key features include:

• Digital blueprint management. Allow instant access to updated plans to ensure everyone’s working with the latest version.

• Collaboration. Let team members mark up plans, leave comments and track changes.

• Issue tracking. Log and track issues on-site with photos and detailed notes for quick resolutions.

Construction teams can struggle to manage and access updated plans, especially in the field where quick access is crucial. PlanGrid solves this by giving all team members access to blueprints, RFIs and project documents in one place.

5. Safety Meeting App

The Safety Meeting App streamlines safety meetings, documentation and compliance tracking on construction sites. It simplifies record-keeping and OSHA compliance, ensuring teams stay on top of safety protocols.

The Safety Meeting App’s key features include:

• Incident reporting and tracking. Log safety incidents with photos and descriptions, ensuring quick resolution.

• Digital safety checklists. Automate safety inspections with customizable checklists, reducing manual paperwork and improving accountability.

• Alerts. Get instant alerts for safety violations in line with OSHA (Occupational Safety and Health Administration) and industry regulations.

With so many moving parts, it’s easy for safety meetings to fall to the wayside in construction projects. Disorganized safety tracking can lead to overlooked hazards, non-compliance fines and increased liability.

The Safety Meeting App digitizes the process to help construction managers maintain compliance and create a safer work environment.

Construction management FAQs

Final thoughts

Construction managers juggle multiple responsibilities to ensure smooth execution and successful project delivery. The process requires careful planning, effective resource allocation and solid communication to keep projects on time and within budget.

Without a centralized system, important details can get lost, leading to costly mistakes. A CRM like Pipedrive organizes project information in one place. Construction teams can track progress and share updates to reduce errors and avoid delays.

Sign up for a free trial to keep your budget in check and deliver a smooth construction project.