The Future of Construction Project Management
4 predictions to drive project success in the modern world.
👋 Hey, Kyle here! Welcome to The Influential Project Manager, a weekly newsletter covering the essentials of successful project leadership.
Today’s Overview:
The construction industry is at a crossroads. By 2030, AI is expected to handle 80% of project management work, yet only a third of projects are considered successful.
Traditional project management approaches are no longer effective, and the industry is struggling to adapt to the changing landscape.
How can construction professionals stay ahead of the curve and deliver successful projects in this new era?
My 4 predictions indicate that the future belongs to those who embrace agility, remote work, technology, and power skills. With these in mind, project professionals can thrive and deliver projects efficiently, effectively, and profitably in this new era.
Today’s Newsletter is Proudly Presented by Knowify!
Knowify’s construction management software is designed specifically for trade contractors in the commercial sector. It helps you bid, manage, and invoice for every project or service call in one place. Save hours every day with a streamlined project workflow that keeps your entire team on-task, on-budget, and on the same page.
Break projects down by phase and task, use powerful tools like Gantt charts and dependencies to keep teams on track, and stay on top of every job with informative daily logs and progress tracking by phase.
Knowify also has the strongest QuickBooks integration in the construction space, meaning your data syncs between the two systems in real-time. Ready to elevate your business? Try Knowify’s software for free and experience the difference.
The Future of Construction Project Management
Filed under: Project Management, Construction
This is an exciting time for project managers and their organizations.
According to Gartner, by 2030, 80% of project management tasks will be handled by artificial intelligence.
But don’t worry, AI isn’t here to replace you - it’s here to elevate your role.
As project professionals, we've always adapted to changing business and technology landscapes. We learn quickly, innovate, and tackle new challenges to make things happen.
So, what's driving the evolution of our profession in 2024 and beyond?
In this newsletter, I’ll explore four predictions that will shape the future of project management:
Agility will be the new standard.
Remote work will be the new normal.
Technology will be the key to survival.
Power skills will continue to lead the way.
Let's dive into how these predictions can become the driving force behind your project success in the modern world.
1. Agility: The new standard for thriving in the future of work.
Agility is defined as the ability to move quickly and easily.
In business, it’s the ability to adapt, innovate, and respond rapidly to market demands. It’s a holistic approach that encompasses an organization's culture, mindset, and operations, ensuring all parts work together to deliver value.
We live in a VUCA (volatile, uncertain, complex, and ambiguous) world, facing challenges like climate change, sustainability, and complex supply chains.
Traditional delivery methods (design-bid-build) are no longer effective. They take too long and cost too much. To meet customer expectations, leaders must innovate and deliver products and services quickly.
Agile is about doing the right thing, not just doing things right. The future of project management belongs to the agile thinkers and doers who can deliver projects quickly and profitably. This is achieved through emerging methods like:
Design-Build
Target Value Design (TVD)
Industrialized Construction
Early Design Involvement (EDI)
Lean Integrated Project Delivery (IPD)
Project Production Management (PPM)
Each of these methods prioritize collaboration, innovation, and strategic technology use—in other words, they’re agile.
🔁 Developing Agility as a Leader
“It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” - Charles Darwin
For leaders, this means dealing with incomplete knowledge, limited resources, and human nature’s unpredictability. To develop agility, use the “OODA Loop,” a framework that helps you stay ahead in fast-changing environments.
OODA stands for Observe, Orient, Decide, and Act. It is quick to apply, and useful for building the adaptive process into the very way we lead.
Observe: Gather data through senses and modern metrics.
Orient: Analyze the data to create a coherent map of options.
Decide: Choose the best course of action.
Act: Execute swiftly and decisively, then observe the effects and repeat the loop.
Adaptation is not a reaction, but a systematic series of actions. If you want to make good decisions, you need to master the art of observing your environment to build the most accurate picture possible.
Knowify’s all in-one solution gives you complete confidence in observing your project and accounting data. Real-time cost tracking captures every project input as it happens, including materials, equipment, subcontractors, and labor costs. Your project data syncs in real-time on every project, enabling you to observe, orient, decide, and act effectively.
2. Remote Work: The New Normal for Project Managers
The pandemic has permanently changed how we work. Now, 61% of project managers work remotely at least part-time. Flexibility is the new standard.
While traditional offices still have value, the ability to manage projects effectively from anywhere is a game-changer.
Here are some tips for remote project management:
Invest in the best remote project management tools. There are a number of great tools available that can help you to stay organized, communicate with your team, and track progress. A popular choice is Knowify.
Trust and empower your team. One of the biggest challenges of remote project management is the lack of face-to-face interaction. Give your team the space to work independently and trust them to get the job done.
Set clear goals and expectations. It’s important to be clear about what you expect from your team members in terms of their roles, responsibilities, and deadlines.
Provide regular, direct feedback. Just because you’re not working in the same office as your team members doesn’t mean you can’t provide feedback. In fact, it’s even more important to be clear and direct with your feedback when you’re working remotely.
Use video conferencing to stay connected. Make sure to schedule regular video calls to check in on your team’s progress and to provide support.
Be flexible. Things don’t always go according to plan, especially when you’re working remotely. Be prepared to adjust plans as needed and be flexible with team schedules.
Foster collaboration and engagement. Remote work can sometimes lead to feelings of isolation and disengagement. Leverage collaborative tools for real-time document sharing and editing to boost productivity and engagement.
Prioritize work-life balance. Remote work can blur the boundaries between personal and professional life. Encourage regular breaks, promote wellness initiatives, and emphasize the importance of disconnecting after work hours. A well-balanced team is more likely to be motivated, engaged, and productive.
Regularly evaluate and adapt your approach. Seek feedback from team members and stakeholders to pinpoint areas for improvement.
Remote work is here to stay. With the right tools and strategies, you can manage remote projects successfully and deliver projects on time and within budget.
3. Technology: The key to survival.
The construction industry invests $48 trillion in projects annually, but only a third are considered successful. This is partly due to outdated tools like slides, spreadsheets, and manual record-keeping.
Digital technology is transforming every sector, and construction is no exception. The question isn't "if" but "how" and "when." Those who don't adapt will be left behind.
Integrated platforms can save up to 13% of total project spending by capturing, integrating, and standardizing data. These platforms reduce administrative burdens and maximize productivity by centralizing all project data and people in one place. This allows teams to focus on high-impact work instead of mundane tasks.
For commercial trade contractors looking to get the best handle on their true project costs, there’s no better combination than Knowify + QuickBooks Online. The platforms sync both ways in real time, so your job costing and project management software communicates directly with your accounting system, and vice-versa. Keep project managers in Knowify and accountants in QuickBooks Online, so everyone works where they’re comfortable, and the data never misses a beat.
Wasted activities, such as schedule overruns and low labor productivity, can account for 10-30% of building project costs. Labor productivity is the top area needing improvement. Contractors who invest in new onsite technologies are the ones who maximize productivity, streamline processes, and reduce wasted time.
An integrated platform enables better collaboration across the project lifecycle, resulting in numerous benefits to stay competitive:
Reducing rework
Saving weeks on your schedule
Building scalable businesses
Improving safety programs
Protecting against litigation
Improving labor productivity
Owning your data throughout the project
Reduce punch list items and resolve them 50% faster
Reducing non-recoverable change orders
Faster RFI responses and change order approvals
Boosting client and vendor satisfaction
Better field-to-office communication
Better cost tracking and management
Investing in a platform isn't just an IT cost; it's a business improvement investment that expedites operations and delivers results. These platforms change the tech narrative from buying products to investing in outcomes, connecting all stakeholders to collaborate and achieve breakthrough business results.
Moreover, your technology is a powerful selling point for attracting the next generation of talent, helping to address the growing labor shortage in our industry.
Harsh truth: If you're not using construction management software, you're falling behind. Now is the time to embrace technology. It's only going to become more important and powerful.
Real-time tool and material tracking, smart site logistics, AI-driven procurement, on-site 3D printing, workers using exoskeletons to assemble components—it's all coming, ready or not.
4. Power skills will continue to lead the way.
The future of construction isn’t just software - it’s the people who use it. Even as our tech and tools advance, project management will always be about people.
PMI defines power skills as the abilities, attributes, and behaviors that help project professionals succeed. Some people and organizations call them “soft skills” or “interpersonal skills.”
Calling these abilities "power skills" highlights their value. Companies that prioritize power skills—like communication and collaborative leadership—see better results. 57% of organizations that emphasize power skills report higher project performance.
Power skills are rocket fuel for building healthy relationships, communicating effectively, solving problems, and collaborating. Unlike hard skills, which are measurable, power skills are about personal qualities and handling situations. They're not as easy to quantify, but boy, are they important!
PMI surveyed nearly 3,500 professionals and found that the top four most influential skills are:
Communication: Ability to effectively explain, write, articulate, and public speak.
Problem-Solving: Ability to figure out what is wrong and how to resolve it.
Collaborative Leadership: Ability to work with others across boundaries to make decisions.
Strategic Thinking: Ability to see patterns and alternative paths rather than complexity.
Improving these skills can lead to promotions, raises, respect, and better project outcomes. While technical skills are important, understanding human interactions is equally important.
At the end of the day, projects are built by humans. We need to appreciate this and continue developing our power skills as we prepare for the future.
Final Thoughts
Despite the current challenges and disruptions, the future of project management is full of opportunities. The most exciting aspect is the endless possibilities that lie ahead.
When you think about industries from space to healthcare to manufacturing, they are full of big, exciting projects that will have a significant impact.
I'm really excited that we are the ones that are really helping to shape that.
🔑 Key Takeaways:
Embrace Agility: Learn how to constantly observe, orient, decide, and act.
Leverage Remote Work: Use tools and strategies to manage projects from anywhere.
Invest in Technology: Integrated platforms reduce costs, boost efficiency, save time, and help you compete.
Develop Power Skills: Go all in on communication, problem-solving, leadership, and strategic thinking.
🚀 Team up with Knowify.
Ready to take off into the future?
There's never been a better time to be in the construction business. With platforms like Knowify, running your contracting business is a breeze.
Knowify’s construction management software helps commercial trade contractors bid, manage, and invoice for every project or service call in one place. Save hours every day with a streamlined project workflow that keeps your entire team on-task, on-budget, and on the same page.
“Knowify is the main reason we’ve grown so much in the last few years. As the owner of the company – it easily saves me 20-40 hours a week vs what I was doing on paper before.” - Nathan Kohatsu, Owner, UK Electric
Construction management platforms are considered to be one of the top technologies that will drive change over the next 3-5 years. It’s no wonder, then, that many owners, general contractors and specialty contractors already are or plan to implement such a platform within their own business to stay ahead.
Ready to change the game? Try their software for free and get ready to crush it.
Until next week,
Kyle Nitchen
LAST WORD 👋
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Great article and excellent points, the amount of change generative AI has brought in the last year alone is staggering - as a PM, if you want to stay relevant and efficient, then utilizing the latest tech tools is a must.