Project Controls Vs Project Management: Why Both Matter

When managing complex construction projects, two key disciplines play a critical role: project controls and project management. While both are essential for project success, they serve different functions. This article explores the key differences, how they interact, and why both are necessary for construction projects to stay on track.

Project Controls vs Project Management

Project management oversees planning, execution, and delivery within timelines and budgets. It involves leadership and strategic decision-making to meet objectives. Integrating project controls is essential for monitoring progress and maintaining compliance with constraints.

Project controls focus on the technical aspects of managing project performance, particularly cost and schedule. They involve analyzing data, forecasting, and monitoring variables to keep the project aligned with its plan. These processes are crucial for tracking progress and identifying risks throughout the project lifecycle, ensuring projects remain on course.

While project management is responsible for the overall execution and leadership of a project, project controls provide the necessary monitoring and forecasting to ensure the project stays aligned with its objectives.

Key Components of Project Controls:

• Cost Control: Managing budget, expenditures, and financial forecasting within the framework of the iron triangle. Involves monitoring budget, expenditures, and financial forecasting.
• Cost Schedule/Cost loaded schedule: Tracking progress against planned timelines.
• Change Management: Evaluating and implementing changes effectively.
• Risk Analysis: Involves identifying potential issues before they become problems. This can also encompass cost risk analysis.
• Performance Reporting: Also monitoring and controlling in project management. This provides data-driven insights to stakeholders.

If project management is the orchestra conductor, project controls is the sheet music—providing the structure and detailed data needed to keep everything in sync. The project controller plays a crucial role in managing the project's cost and schedule, advising the team on these aspects throughout the project lifecycle.

If you're looking for a deeper dive into project controls and how they streamline project execution, this guide offers valuable insights.

Project Controls vs. Project Management in an Organizational Chart

Understanding where project controls and project management fit within an organizational structure helps clarify their roles. Project managers often sit at the top, overseeing the entire project, while project controls teams provide support through analysis and performance tracking.

The difference between project controls and project management lies in their specific roles and responsibilities: project controls primarily focus on managing cost and schedule, while project management encompasses a broader range of tasks including initiation, planning, execution, and closing.

The Interaction of Project Controls Teams with Project Team Leads

Project controls teams don’t operate in isolation. They work closely with project managers and other leads to ensure seamless project execution. The project controller advises the project team and project manager on cost and schedule issues, providing insights without directly directing the team's actions or making decisions.

How They Collaborate:

• Data Sharing: Project controls provide real-time insights that help project managers make informed decisions. Project team members play a crucial role in managing project scope, cost, and timeline, and their collaboration with project controllers is essential for effective project management.
• Course Correction: If a project is veering off track, project controls highlight the issue so adjustments can be made.
• Risk Prevention: Continuous monitoring helps project teams address risks before they escalate.

This dynamic interaction ensures that projects are not only well-planned but also well-executed.

Why Are Project Controls Important in Project Management?

Project controls are essential because they bring structure, accountability, and predictability to projects. Without them, project managers would be making decisions based on intuition rather than data. Project control is a set of processes that help project managers make informed decisions throughout the project lifecycle, from initiation to closure.

Benefits of Project Controls:

• Cost Efficiency: Prevents budget overruns through real-time tracking and effective project cost management, a critical aspect of project controls.
• Schedule Accuracy: Ensures timelines are met by identifying potential delays.
• Risk Mitigation: Helps identify and address risks before they impact the project.
• Improved Stakeholder Confidence: Data-backed reporting enhances trust and decision-making.

Many projects fail due to poor tracking and lack of insight—project controls act as a safeguard against such failures.

The Role of Project Management Software

Project management software plays a key role in integrating project controls with project management. Using project management software to track project progress is crucial to ensure tasks are completed on time.

How Software Enhances Both Functions:

• Centralized Data Management: Stores project plans, budgets, and reports in one place.
• Automated Reporting: Generates real-time performance insights and uses software to monitor the project's progress, ensuring it stays on schedule.
• Collaboration Tools: Improves communication between project teams.
• Risk Analysis Tools: Uses predictive analytics to flag potential issues.

Modern project management tools bridge the gap between project managers and project controls teams, ensuring both functions work efficiently together.

Why Both Are Essential for Construction Success

Project management and project controls are two sides of the same coin. While project management drives execution, project controls provide the guardrails to keep everything on track.

Utilizing both project management and project controls ensures construction projects meet their objectives efficiently. This balanced approach mitigates risks and optimizes resources, enhancing overall project success.