Financial Knowledge In Construction Project Management – Post COVID Era
The world will not be the same post Covid-19 and so will the industry expectations from Project Management Teams.
The coronavirus pandemic will have far-reaching consequences beyond the spread of the disease and efforts to quarantine. As the pandemic has spread around the globe, it will have long term economic impact.
In the current scenario global economic parameters are shifting at a rapid pace, it is difficult to predict what changes will it impact on which sector and how.
Historically, it is observed that the Construction Industry is affected the most in any economic crisis.
It is also the last to recover. This will hold true for the current crisis as well, as the construction industry is channeled by multiple parameters. Tangible parameters such as the fiscal policy, bank lending rates, increasing financial stimulus to revive the GDP and intangible parameters like human sentiments will lead to liquidity crunch for the projects.
This pandemic has brought crisis to every sector. In the present scenario when uncertainties are at peak and there are very high chances that every plan or prediction might fail. The need of the hour is to focus on an “Agile Execution” approach as it needs to be more responsive and inclusive.
Considering the above analysis, Project Managers must initiate a strategic approach towards project execution. The world will not be the same post Covid-19 and so will the industry expectations from Project Management teams.
The current economy demands Project Managers to be financially savvy. Traditionally, Project Manager’s focus has been on the Iron triangle which is the combination of Time, Cost and Quality with the Scope in the center. Now, the Project Managers would be expected to contribute to the stakeholder’s value and the long term financial success of the project.
With this in mind, it is absolutely imperative for Project Management professionals to have a clear and in-depth knowledge of financial management and understanding of its impact and control on the different stages of the project life cycle.
Based on our in depth analysis of the current crisis, we have conceived the following sections of this paper to make the project managers future ready.