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What Is the Typical Organizational Structure of a Construction Company?

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  • Written By: Dan Harkins
  • Edited By: Kaci Lane Hindman
  • Last Modified Date: 21 September 2016
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Construction companies are built around project management goals. To this end, the organizational structure of a construction company often branches off into several vice presidents, each responsible for a different facet of the business, from satisfying contractual obligations to drumming up new business. Many of the most visible workers of a construction company will be the line staff employed under a single department — construction management. A range of other managers and employees in the hierarchy hold down key responsibilities that keep the construction workers up to their hardhats in work.

The top position in the construction company is a president/CEO. In larger companies, this person may answer to a board of directors, although he or she may answer to just an individual owner, unless the owner is the president too. This person is ultimately responsible to customers and stakeholders.

Much of the day-to-day responsibilities of running a construction company falls on the shoulders of a cadre of vice presidents. These chiefs oversee staff with a range of duties. Vice presidents of sales, development, operations, engineering and construction management are commonly utilized to organize and oversee a construction business. Other vice presidents may be tasked with serving as chief financial officer/comptroller or director of operations. Some mammoth construction companies, with various types of projects, will further divide vice presidencies among commercial, residential, bridge, road and even more specialized projects.

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Because the construction business is largely concerned with planning and executing a variety of projects at once, the project management business model is often employed. This means the company may have many managers directly beneath key vice presidents who are responsible for a particular building or redesign effort, assigned to supervise several line workers beneath them. Once the project is completed, these project managers will move on to the next project drummed up by the sales or development departments.

Several types of managers are unique to manufacturing or construction businesses. Safety directors or environmental managers are often employed in the operations or development departments to ensure compliance with regulations and to avoid unnecessary pollution or injuries. Other managers unique to the construction trade can often be found in the development department, such as chief estimator, lead architect/designer and surveying chief. These managers often are involved with project managers in the construction management department, particularly at the beginning of a new project.

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bagley79
Post 2

My brother graduated from college with a degree in construction engineering and currently works as a project manager for a construction company.

In the past, this construction company would hire their project managers from within and did not require them to have a college degree.

Over the years they made some changes in their organizational structure, and now require their project managers to have a college degree.

He says if he didn't have his engineering background, there is no way he would be able to decipher some of the plans. There is one man who is in charge of all of the project managers, who reports to the president of the company.

There are also a lot of other positions within the company, including those who make sure they are following all of the correct OSHA rules and regulations.

John57
Post 1

My husband works for a construction company that has been in business for around 50 years. This was started by three brothers and still remains in the family today.

Today one son from each of the brothers runs a separate part of the company. One is in charge of the office work, one of them is in the field and one brother runs the shop area.

Then they have the project managers who oversee all of the different crews. These project managers split up the crews and spend their time traveling wherever they are currently working.

Each crew has one superintendent who is responsible for making sure the job is done correctly and on time. Most of

the construction superintendents also have a foreman under them to run things if they happen to be gone.

There are a different number of crew members on each crew - depending on how large the job is.

This construction company has used this organizational structure for many years. The company keeps growing every year and is always adding on more crews, so it must be working well for them.

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