There are various reasons that lead to a construction company going in trouble, including general economic conditions, not being competitive, heavy operating expenses, poor accounting system or even high employee turnover, but none impact a construction business as significantly as lack of project managerial expertise PMP certification cost .
The Project Management Professional (PMP) certification is for project managers with extensive experience. Qualifications and testing criteria are rigorous, making it a widely respected certification. Generally speaking, construction projects are run by contractors, not by certified Project Management Professionals (PMPs).
The contractors would say that they’re the only ones who truly understand construction, because they’ve been there and done that; but, is that viewpoint valid? Where does the need for hands-on experience end, and the need for rigorous and structured project management ability begin?
Most contractors, whether general contractors or specialists (plumbers, electricians, etc.), worked their way up in the construction business. That means they started out as an apprentice, became a journeyman, possibly were promoted to being a crew chief or jobsite superintendent by the company owner, then eventually stepped out on their own to start their own company and be a contractor.
The world of construction is highly competitive, especially in today’s economy. Each job out there has a number of contractors bidding on it, driving prices down and all but eliminating profit margins. A common strategy which many contractors are using today is to bid the job with minimal overhead and negligible profits, depending on “Change Orders” to make their profits.