(Now back to the construction budgeting series)
I once worked for one of the larger general contractors in Tennessee, Hardaway Constriction Corporation. My main role at Hardaway was to look after the company’s interest as it spun off one of its divisions to an ownership group of the divisions’ managers.
There were jobs being completed by the division for Hardaway and the division was beginning to obtain work under the new company name. Because of this, we had regular meetings to discuss the status and progress of the jobs the division was completing for Hardaway Construction.
At one of these meetings, we were discussing how a project manager had been uncooperative to a request I had made. In frustration, I made the comment that the project manager is already acting like he owns the place. When I said this, Mr. Hall Hardaway stopped me and said, "Project managers become project managers because they want to be in control and run their own business, which is what a project is".
Project managers run projects for construction companies and they are the ones who are ultimately responsible for the profitability of a project. Additionally, project managers have the greatest ability to control and influence the expenses associated with a project.
This is the reason that project managers must understand that budgets will benefit them in order to successfully implement budgeting of construction projects.