Project Management
Synonyms: Construction Project Management، Construction Management، PMC Services
Last updated: 2026-09-25
Short Definition
Project management in construction is the planning, organizing, leading and controlling of a project's work from concept to handover in order to deliver the required scope at the specified quality, within budget and schedule, while managing risks, contracts and communication between the parties.
Overview
Legal Basis
The implementing regulations of the Off-Plan Sale and Lease of Real Estate Projects Law (issued by REGA board decision in 1445H) address project-management elements explicitly: developer registration criteria include project-management software, the schedule and team structure (Art. 5); approval of the consulting office requires a Balady classification certificate covering construction project management where the project exceeds SAR 25 million (Art. 6); and progress reports are due monthly or quarterly (Art. 25). The Saudi Building Code Implementation Law (M/43) requires design, supervision and execution to be contracted to licensed parties (Art. 7), and the Engineering Professions Practice Law (M/36) requires professional accreditation for anyone performing engineering work (Art. 2).
Practical Example
A developer is building a 60-unit off-plan project in Riyadh with a construction cost of SAR 30,000,000 and appoints a project management consultant at 2.5% (SAR 750,000). In month eight, planned value is 40% of budget (SAR 12,000,000), the earned value of completed work is 34% (SAR 10,200,000) and actual cost is SAR 11,000,000. The schedule performance index is 0.85 and the cost performance index about 0.93, meaning the project is behind schedule and over cost. The consultant prepares a recovery plan adding a shift for façade works and renegotiating the aluminium supply, and submits monthly progress reports to REGA because the project exceeds 5,000 m².
Common Mistakes
- ✗Relying on the contractor to manage the project on the owner's behalf, creating a conflict of interest in measuring progress and approving payments.
- ✗Having no approved schedule and cost baseline, making it impossible to measure variance or prove delay.
- ✗Handling change orders verbally without assessing their cost and time impact before approval.
- ✗Ignoring the risk register until foreseeable risks (such as supply delays or drawing approvals) become crises.
- ✗In off-plan projects: failing to submit progress reports and update REGA's project database.
International Differences
International practice relies on frameworks such as the Project Management Institute's PMBOK Guide and the UK's PRINCE2 methodology, and international standard contracts (such as FIDIC) use the role of the "Engineer" or project manager to manage changes and claims. In the UAE and Qatar, appointing a project management consultant on major projects is common. Saudi Arabia is distinctive in that the off-plan regulations make project-management tools and progress reports part of the regulatory oversight of developers.
