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Project Management

Project Manager

In Plain English

The person responsible for delivering the entire construction project on time and within budget.

Definition

A construction project manager (PM) is responsible for the overall planning, coordination, financial management, and delivery of a construction project. The PM manages client relationships, negotiates subcontracts, oversees the project budget and schedule, processes change orders and pay applications, and coordinates with the design team and owner. The PM typically operates from both the office and the field.

Why It Matters in Bidding

The project manager owns the budget and procurement decisions that determine whether a bid's projected margin survives construction, from negotiating subcontracts to processing change orders and pay applications. A strong PM converts a winning estimate into a profitable job by buying out scopes at or below the estimated values and controlling the cost events that erode margin after award.

Example

After the bid was won, the project manager ran buyout, awarding the drywall and electrical subcontracts below the estimated values, which protected the job's fee before construction even started.

Related Terms

Site SuperintendentProject EngineerConstruction Manager

Frequently Asked Questions

The project manager typically runs the business side from the office, owning budget, subcontracts, change orders, pay applications, and owner relationships. The superintendent runs the field, managing daily crews, sequencing, and site safety. They work as a pair, with the PM controlling cost and contracts while the super controls means, methods, and schedule on the ground.
Buyout is the post-award process of awarding subcontracts and purchase orders for each scope, ideally at or below the values carried in the winning estimate. The project manager leads it because the spread between estimated and bought-out costs largely determines the job's profit, making buyout one of the PM's highest-leverage responsibilities.
By achieving favorable buyout, scrutinizing and pricing change orders promptly, billing accurately to maintain cash flow, tracking committed versus actual costs, and managing subcontractor performance and risk. The PM essentially defends the margin baked into the original estimate against the cost events that surface throughout construction.

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