The Misconception of the Contractor’s Problem in Project Management

Introduction

In any business organization, project management is one of the vital aspects, and its role is getting increasingly critical. Three parties are always needed in any project: the contractor, the project management team, and the client or owner. The contractor ensures that they plan and coordinate all the project activities and has to ensure it is done within the stipulated timeframe. They are often in charge of the whole project’s completion and decide the best methods to utilize.

For this reason, project managers have often assumed that they do not need to worry about the project’s progress during the execution phase, referred to as “the contractor’s problem.” However, this statement needs to be more accurate. It can lead to significant project management issues that affect project completion, such as ineffective coordination and communication between the contractor and the project manager. This paper will explore why project managers should not assume the “contractor problem,” why they should be actively involved in the execution phase, and how they can cooperate with the contractors to ensure success.

Understanding the Misconception of the Contractor’s Problem

Project Manager’s Role

Even though the contractor plays a vital part in ensuring the project is completed, the success of a project often lies with the project manager. These individuals are usually required to steer the whole project. George (2020) notes, “The project manager is the project boss that ensures that the objectives of the project are achieved within given schedule, budget and scope” (p. 189). They must comprehensively understand the project to ensure the desired quality is met and all challenges are addressed. They need to set the expected quality standards of the project, as well as relevant timelines, budgets, and strategies to mitigate risks. This means that the project manager’s responsibility continues even after they deliver packages during the execution stage. It continues until the project ends, and therefore must have good knowledge and experience relevant to different areas.

Active Involvement in Execution

A project manager must be available and actively involved in every stage of the project, including the execution phase. They must take charge and offer the guidance and support needed for its success. The statement, “It is the contractor’s problem,” is a misconception because a project’s success needs open and transparent communication between the manager and the contractor.

Communication in Project Management

Shakeri and Khalilzadeh (2020) note that communication in project management is essential because it aids the exchange of ideas, information, and suggestions to ensure a project’s success. Effective communication ensures that all professionals participating in the project are aware of the expectations and goals. It helps professionals involved in the projects perform their roles more effectively and improve quality (Sundqvist, 2019).

Therefore, during the execution stage, the project manager must be actively involved in the projects even after the work packages start because the contractor needs them (George, 2020). Effective communication between the project manager and the contractor will ensure a transparent work scope, clearly defined deliverables, and practical problem-solving strategies in place. As a result, the project will be on track, and the two will effectively address any issues that arise since they will share ideas, suggestions, and information.

Collaboration is Key

The “contractor problem” perspective neglects the need for a collaborative approach in project management, which plays a significant role. In addition to clear and transparent communication that plays a crucial role in effective project management, continuous cooperation between the project manager and the contractor is also essential. The project manager and the contractor are professionals in different areas of project management. While the contractor ensures that the project is completed effectively using appropriate methods, the project manager oversees that all required for its successful completion is done. Results attained (Zhao, Fan, and Chen 2021). Therefore, when the project manager assumes “the contractor problem” perspective, there will be no cooperation between them and the contractor, which might negatively affect the completion of the project.

Governance Structure

However, when the manager works closely with the contractor, they will offer the required guidance and support to deliver quality work within the deadline or the stipulated budget. Collaboration between the project manager and the contractor would include regular updates and reviews of the project’s progress. This would also help them identify issues the project might face during its execution and develop strategies to combat them (Elmezain, Baduruzzaman, and Khoiry, 2021). It would be easy for the project manager to communicate the changes in the objectives and scope of the project if they were collaborating with the contractor.

Avoiding Complacency

It would also be wrong for a project manager to assume “the contractor problem” because the success of any project needs an appropriate governance structure. Governance structure in project management is “the framework of project management, especially regarding rules, procedures, roles and the division of responsibilities within the whole decision-making process” (Drys, 2020, p. 1). A governance structure ensures that the project runs as expected, addresses most challenges, and goes as planned. Therefore, since it is the project manager’s role to ensure an appropriate governance structure, assuming the “contractor problem” will significantly affect the project’s success.

The lack of a project manager in the execution phase would mean no clear decision-making processes and line of authority, hindering effective controlling and monitoring of their progress. Therefore, the manager must be available in the execution stage of a project to ensure there is appropriate governance and that they work together with the contractor to ensure all is on track.

Impact on Team Motivation

The common perspective of “the contractor’s problem” can lead to complacency in managing a project since it might create a sense of false security. Furst (2021) notes that complacency is “a feeling of self-satisfaction, especially when accompanied by a lack of awareness of actual pending trouble, deficiencies or controversy” (p. 1). In psychology, complacency is caused by “confirmation bias,” which involves overlooking or misinterpreting information due to a one-sided belief (Mitcheltree, 2023).

Due to complacency caused by “the contractor’s problem” perspective, project managers neglect their responsibility of overseeing the project, which can negatively impact the project’s successful completion. For instance, when the project manager pays attention to his overseeing responsibility, there is a higher possibility that the contractor will deliver a low-quality outcome, which might lead to a loss of funds and delays to the client (Irfan et al., 2021). Ultimately, this would also damage the organization’s image, as it might lead to client dissatisfaction with the project.

The perspective of “the contractor’s problem” can also negatively affect the project team’s motivation. Motivation plays a critical role in everyone’s different aspects of life, including health, work, education, success in life, marriage, and so much more. People can have the drive to attain their goals through motivation effectively. It is essential to project success as it determines how the project team functions. Udofot, Bosston, and Oluseyi (2022) note, “Motivation can inspire, encourage, and stimulate individuals and project teams to achieve great accomplishments” (p. 238). It is the drive that team members need to work together and make collective efforts to ensure their project is successful.

With this in mind, the project manager should ensure that he works closely with the contractor and other stakeholders in the project to attain their goals within the set timeframe and budget. However, when the project manager considers “the contractor’s problem” during the execution phase, the team members and the contractor feel less supported and significantly undervalued. This might lead to feeling less motivated and engaged in completing the project.

Mitigating Risks Together

The project manager and the contractor need to work together to effectively mitigate risks that might prevent the successful completion of the project. When executing a project, there is a high possibility that a contractor may encounter some risks. These risks include mismanagement of funds, poor implementation of critical operations, ineffective communication, unauthorized project scope, challenges with new technology, and so much more (Ferreira de Araújo Lima, Marcelino-Sadaba, and Verbano, 2021). These risks might lead to increased costs, lower quality outputs, delays in project completion, and decreased stakeholder satisfaction (Barghi, 2020).

Therefore, project managers need to be actively involved in the execution phase and work together with the contractor to mitigate these risks. Managers must ascertain that they identify the risks that threaten the project’s success, analyze them, and find better strategies to reduce them (George, 2020). When the project manager works closely with the contractor, they might get feedback on the potential risks that might threaten the success of the project and suggestions on the best way to go about them.

Continuous Improvement

The need for continuous project improvement makes the perspective of “the contractor’s problem” a complete misconception regarding project management. As mentioned earlier, a project manager’s role is ensuring the project runs as expected. Overseeing would mean that when the project is not going as planned, the project manager needs to continuously make improvements where necessary.

According to (Lameijer et al., 2021), some benefits of continuous improvements in project management include greater project team engagement, improved outcome quality, significant cost cuts, and increased possibility of completing the project within the required timeframe. Therefore, the project manager should always evaluate how the contractor is performing and the project’s progress to determine where to improve. The project should also offer the contractor feedback on their progress and support that would help keep the project on track. Additionally, the project manager’s evaluation can also help improve future projects.

Managing Stakeholders

The statement, “It is the contractor’s problem,” is misguided because the manager has to be actively involved in the project to ensure stakeholders are effectively managed. According to Sperry and Jetter (2019), “Projects that make effective use of project stakeholder management (PSM) tend to run smoothly and be successful because stakeholders understand and agree with the project approaches and outcomes” (p. 699). Project stakeholders such as the manager and team members, contractors, clients, investors, and many others often need to be aware of the project’s progress, the milestones attained, any improvements needed, and much more. Failure to constantly inform stakeholders would lead to clarity, as only a few people will have updated information about its progress. Therefore, the manager has to continually inform stakeholders of the progress the contractor is making and issues they have encountered through regular updates and addressing any concerns they might have.

Conclusion

In conclusion, the “contractor’s problem” that many project managers hold during the execution stage of project management is misleading and might cause a significant challenge in completing a project. A project manager is the boss who controls the project and ensures that its objectives and goals are attained within the stipulated timeframe, budget, and scope. Therefore, since they are an important part of ensuring the project runs smoothly, the project manager is supposed to involve themselves in all project phases, including the execution phase. Projects are often complex and need project managers to work closely with contractors and other stakeholders to ensure an appropriate governance structure, effective communication, necessary improvements are made, risks are effectively managed, and everyone is on the same page with the project’s progress. Collaboration between the manager and the contractor guarantees quality outcomes delivered within the required time and within the budget.

Reference List

Barghi, B. (2020) ‘Qualitative and quantitative project risk assessment using a hybrid PMBOK model developed under uncertainty conditions,’ Heliyon, 6(1). Web.

Drys, I. (2020) ‘Governance structure – why is it so important in project management?. Web.

Elmezain, M., Baduruzzaman, W.H.W. and Khoiry, M.A. (2021) ‘The impact of project manager’s skills and age on project success,’ Brazilian Journal of Operations & Production Management, 18(4), pp.1-16. Web.

Ferreira de Araújo Lima, P., Marcelino-Sadaba, S. and Verbano, C. (2021) ‘Successful implementation of project risk management in small and medium enterprises: a cross-case analysis,’ International Journal of Managing Projects in Business, 14(4), pp. 1023-1045. Web.

Furst, P. (2021) ‘Managing complacency’. Web.

George, C. (2020) ‘Unravelling the critical role of project manager in project management success,’ Article in International Journal of Science and Research, 9(3), pp. 189-194. Web.

Irfan, M. et al. (2021) ‘Role of project planning and project manager competencies on public sector project success,’ Sustainability, 13(3), p. 1421. Web.

Lameijer, B. A., Boer, H., Antony, J. and Does, a. R. J. M. M. (2021) ‘Continuous improvement implementation models: a reconciliation and holistic metamodel,’ Production Planning & Control, pp. 1-20. Web.

Mitcheltree, C. M. (2023) ‘Towards a sense of urgency for innovation realization: a case study on complacency asymmetries in interorganizational relations,’ Innovation and Entrepreneurship, 12(1), pp. 1-37. Web.

Shakeri, H. and Khalilzadeh, M. (2020) ‘Analysis of factors affecting project communications with a hybrid dematel-ISM approach (A case study in Iran),’ Heliyon, 6(8). Web.

Sperry, R.C. and Jetter, A.J. (2019) ‘A systems approach to project stakeholder management: Fuzzy cognitive map modeling,’ Project Management Journal, 50(6), pp.699-715. Web.

Sundqvist, E. (2019) ‘The role of project managers as improvement agents in project-based organizations,’ Project Management Journal, 50(3), pp. 376-390. Web.

Udofot, A. I., Boston, D. E. and Oluseyi, O. M. (2022) ‘Impact of motivation on project team’s performance in the selected firms in Nigeria,’ International Journal of Multidisciplinary Research and Growth Evaluation, 3(2). Web.

Zhao, N., Fan, D. and Chen, Y. (2021) ‘Understanding the impact of transformational leadership on project success: a meta-analysis perspective,’ Computational Intelligence and Neuroscience. Web.

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