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Exploring the effects of the economic crisis

on the way construction projects are managed: The case of Greece

 

FEATURED PAPER

By Stavros G. Barmpas

Thessaloniki, Greece

 



Abstract

The objective of the specific research is to identify how the economic crisis has affected the way construction projects are managed and to determine how project management should be exercised amid an economic crisis.

The research identifies the adoption of more consistent project governance, more rigorous risk management techniques and a more careful project portfolio management as the main areas on which the economic crisis affected the way construction projects are managed. Most importantly it shows that the economic crisis has contributed to the reemergence of project management as a key competency within the organisational culture of construction companies.

In terms of how project management should be exercised amid an economic crisis, the research shows that the main actions to be taken should include the development of an early warning system, the formation of crisis scenarios and the formation of a crisis management team in a context of tighter cost and risk control procedures throughout all the phases of the crisis.

Keywords: project management, economic crisis, construction industry, crisis effects.

Introduction

The financial crisis, which followed the collapse of the subprime mortgage market in the US in 2008, very quickly spread all over the world with disastrous consequences for many countries and a lot of people. One of the most severely hit industries both internationally and in Greece was the construction industry with thousands of jobs lost and hundreds of companies shutting down.

A lot has been written about the macroeconomic effects of the economic crisis on the construction industry. A quick statistical data search can provide useful information on how many employees have been fired, how many companies have shut down and how much value added has been lost in the construction industry all over the world during the crisis years.

Regardless of how useful these statistical data are, they do not allow the understanding of how the economic crisis has affected the way construction projects are managed and how construction project management has changed and evolved during the crisis years. The specific research deals with this very subject and explores the effects of the economic crisis on project management, using the Greek construction industry as a case study. The objective of the research is to identify project management strategies adopted as a result of the economic crisis and to propose an appropriate approach from the project management perspective for dealing with economic crisis situations. In this sense the research questions to be answered are as follows:

  • How has the economic crisis affected the way construction projects are managed?
  • How should project management be exercised amid an economic crisis?

Understanding how the economic crisis has changed the way construction projects are managed is of vital importance, because it will allow the development of a roadmap from a project management perspective for confronting economic crises of similar size/nature and the identification of post crisis project management techniques adopted. The latter is also very important, because it will highlight whether the limitation of resources caused by the crisis has negatively affected the efficiency of the industry or else its capacity to deliver quality projects. It is the ultimate responsibility of the researcher to bring such inefficiencies (if applicable) to light and to propose corrective action.

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To read entire paper, click here

 

How to cite this article:  Barmpas, S. G. (2018). Exploring the effects of the economic crisis on the way construction projects are managed: The case of Greece; PM World Journal, Vol. VII, Issue VI – June. Retrieved from https://pmworldjournal.net/wp-content/uploads/2018/06/pmwj71-Jun2018-Barmpas-effects-of-economic-crisis-on-construction-project-management-in-greece.pdf



About the Author


Stavros G. Barmpas

Civil Engineer, BEng, MSc, MBA
Thessaloniki, Greece

 




Stavros G. Barmpas
is a civil engineer with more than 10 years of working experience as a site engineer in big infrastructure construction projects. He has worked in highway, building and bridge construction projects and he currently works for one of the biggest Contractors in Greece. He holds a Bachelor’s Degree (BEng) in Civil Engineering from the University of Portsmouth (UK), an MSc in Civil Engineering from the same university, an MSc in Construction Economics and Management from University College London, (UCL, UK) and finally an Executive MBA from the International Hellenic University (Greece), graduating first in his class. He can be contacted at: [email protected].