Program Management: An Essential Tool in Today’s Volatile Building Market
What to expect when embarking on a building project in 2024
There is no denying the volatility of the current building market. More than ever, project owners must be intentional in earning and maintaining the trust of their constituents and partners. Remaining informed of the most up-to-date trends is key – below are important considerations for owners as they continue to navigate inflation, supply chain shortages and staffing challenges this year.
It’s a Contractor’s World
In today’s excess of work and shortage of people, general contractors are positioned to be highly selective in the jobs they take on. Owners must make their projects attractive to procure desirable industry partners. Realistic budgets and tight schedules are paramount in doing so. Contractors are seeking practical clients who are confident in their needs and committed to the longevity of the process.
A Dwindling Labor Force
A large pool of skilled workers in trade industries are on the brink of retirement. Meanwhile, the number of younger workers going into trades continues to thin. This, combined with the stimulus money that must be spent in a specific timeframe, creates a unique conundrum in the construction labor market.
Budget, Budget, Budget Before Building
Numerous projects were put on pause last year due to supply and labor shortages and a surge in expenses. Prior to resuming building, owners should rework their budgets. Contractors typically do not guarantee prices beyond 30-60 days. Owners must communicate with their contractors and revisit their projected expenses.
Why Hire a Program Manager?
Without a partner offering extensive knowledge of market conditions and counseling them through the building process, owners are likely to have to go back and request additional funding. A lack of confidence in a project can cause doubt among stakeholders, which leads to difficult conversations down the road. HPM’s job is to lead the way, enabling owners to deliver on the projects they have promised their communities, by positioning them for success.