If you're in the construction business or are planning on becoming involved with any type of larger commercial real estate project, you must have a firm understanding of every arm of this industry. A lot of information exists regarding legality and contracts, and you need to have your eyes open at all times.

When it comes to multi-million-dollar projects, don't think you can't be ripped off or misled just because you're dealing with people who potentially have money. It's possible for any class of wealth to lack integrity and you need to be able to spot potential issues as they arise.

Understanding the stages of a construction project is a perfect place to start. This way, you are familiar with each different completion phase, when certain action should be taken, and when you're eligible to take further action in different situations.

Understanding different phases will also help you track inventory and manage the project funding more efficiently. Continue reading for the most relevant phases of a construction project and why they can be important.

Construction projects vary in size, budget, and delivery date. However, one thing continues to hold true: these projects are always long and demanding and have a lot of different working arms. This is why you need to be efficient in project management.

Get used to these five stages and what they entail so you can become a better project manager.

 1. Initiation Phase

The initiation phase might not consist of anything larger than a few people at a boardroom table. However, it could be one of the most important phases of the entire project.

This encompasses all of the steps you take before a project is approved and any planning stats. Usually, this phase has three separate stages of its own:

The next step moves you a little closer to actually breaking ground.

 2. Pre-Construction

Pre-construction takes place after the bidding is over and the project manager has been selected. Before groundbreaking takes place, the project team must be put together

 3. Procurement Phase

During this phase, the project team will order, purchase, and rent all of the materials, tools, and services to complete the project. This part is critical for maintaining budget and proper communication.

 4. Construction Phase

This portion is self-explanatory. The construction phase is when the busiest portion of the work takes place and includes the actual construction process. Communication and delegating all of your teams is vital during this time and proper attention to inventory management.

 5. Post-Construction/Closeout

The post-construction and closeout phase will include wrapping up a detailed count of all of the inventory and paying off contractors and accounts. Every dollar counts during this stage, so attention to the bottom line is critical. At the end of this stage, you'll have a better understanding of how well the project was managed.

Understanding every stage of the construction process will help you better manage the project overall. When you're aware of what every phase entails, you can prepare yourself better for the next phase and make sure the current one wraps up properly. This will avoid potential stress and miscalculation, as revisiting issues in previous phases won't be an issue. Nationwide Notice specializes in helping with all things construction payment. Whether you need assistance with change order forms or lien releases, Nationwide Notice can help with it all. You can learn more about what we do here , or find out how to contact us today to get started