The Iron Triangle: Managing the Triple Constraints of Project Management
The Iron Triangle: Managing the Triple Constraints of Project Management

The Iron Triangle: Managing the Triple Constraints of Project Management

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In the construction industry, more and more people are becoming aware of many project management tools, methodologies, and techniques that can help them do their jobs better and deliver projects faster. Because project management is such a broad field and encompasses many ideas, it is critical to identify which one can help boost profitability, increase productivity, and improve quality.

Whether you are an experienced general contractor or a newbie project manager, you may have heard of the Iron Triangle or the Project Triangle. Essentially, the Iron Triangle consists of the critical triple constraints when running a project. Construction management software can help deliver high-quality projects on time and within budget.

In this article, let’s examine these three constraints, their advantages, and how to use them in daily operations.

 

What Is the Iron Triangle in Project Management?

 

The Iron Triangle comprises three constraints as your baseline when managing a project. In this section, let us further define the three limitations: cost, scope, and time.

Project Cost Budget

The amount of money a project can have is called the project budget.

Project Scope

The jobs, activities, and deliverables that need to be done to reach the project’s goals

Project Schedule

The plan for finishing the job should show the target deadlines, milestones, and critical path.

The three constraints—costs, time, and scope—affect how well the job turns out. As a project manager, you can manage the triple limit by finding tradeoffs between the three rules.

Another thing to remember about the Iron Triangle of project management is that it applies to projects, programs, and portfolios. This is why project managers must review their project portfolios to ensure that their projects’ costs, timelines, and scope do not clash with those of other projects and programs in their company.

Although the Iron Triangle covers only the three constraints, some project management experts have added another three to better represent a project’s most critical parts.

Quality

Every job must meet specific quality standards, regardless of the final results.  

Risks

Every project has some level of risk, and construction projects are particularly susceptible to these risks. As a result, project managers must create a risk management plan to address project risks.

Benefit

Projects bring about different kinds of benefits. A project manager makes sure that everyone involved in the project gets the most money possible.

 

How Does The Iron Triangle Work?

 

Yes, the Iron Triangle may sound strict and inflexible. However, you can use tradeoffs, wherein project managers can add to or take away from a project’s cost, time, and scope to keep it on track and within budget.

Let’s examine some examples to see how these iron triangle tradeoffs work.

Case 1: Time and Scope

If your project is behind schedule, you can reduce its scope to make it go easier and faster. Of course, this is case-to-case, depending on your project’s requirements. You cannot just change your scope just because you want to. If the project team comes up with more tasks, you can make the project timeline longer.

Case 2: Cost and Scope

If you reduce the job scope, you will have to do fewer tasks, lowering the required materials or labor price. On the other hand, a bigger project scale means more time, money, and effort is required.

Case 3: Cost and Time

Time and cost can be closely related, especially in construction projects. For instance, the time you need the tools or labor affects the cost of renting them.

The Iron Triangle is used to manage the project in all these situations. However, many more tradeoffs can happen in a project involving quality, risk, and value.

As a result, it is critical to utilize a project management tool that helps a manager monitor the project as it progresses. With this knowledge, the project manager can find problems and prevent them from becoming bigger.

 

The Importance of Following The Iron Triangle

 

The triangle is an easy way to inform people about scope creep. It also shows that tradeoffs can and should be considered. The triangle model also lets project managers determine how outside factors and influences might affect one or more constraints.

No two projects are the same, so it is essential to define these constraints early on in the project so that they will serve as the baseline for decisions as the project progresses. The three constraints of project management help project managers and leaders sound the alarm before a project is in danger. If one of the constraints changes, it affects the quality of the job.

 

Balancing The Triple Constraints of Project Management

 

Putting the triple constraints of project management theory into practice is easier than it sounds. As with managing any construction project, it all comes down to handling the tradeoffs between the three limits. Project managers must constantly monitor a project’s price, schedule, and scope. However, you cannot hold any of these individually because any choice you make about one affects the other two constraints.

Here are some of the steps that you can take to balance the triple constraints:

Determine the Project Requirements

The initial stage is to identify the project’s goals for the client. Is it a residential project? What number of stories? From there, you may then determine whether they have a budget, complete the list of needs, and choose a due date. Starting with a reasonable and achievable objective is crucial, even if you know you could have to alter things later.

Establish the Project’s Goals

For your project to succeed, everyone involved must know their jobs and responsibilities. They must also understand every part of the plan and the expected results.

The project scope makes it easier for everyone to agree on what is provided. However, people need to understand that any change orders down the road will completely affect the triangle.

Set Milestones and Deadlines

Now that you have established the project’s scope, setting up your schedule is next. This way, you can see the critical path and how long it will take for the project to finish. Setting up a plan that is easy for teammates to find and understand should be done in a place that is easy to see, such as a cloud-based project management software.

Plan Your Resources

Resources do not just mean materials or equipment but also your crew teams. To maximize resource use, it is essential to put people with the right skills in the right jobs. You will also be successful if you ensure the teams have the necessary tools and money to do the job at hand.

Monitor The Project’s Progress

Clear plans are essential for a project’s success. But the plan will not help if you do not monitor its progress. Monitoring allows you to make small changes while balancing the three constraints.

 

How to Handle the Three Limits?

 

Even though it looks easy, each of the triangle’s three parts can be looked into to find a deeper meaning:

Keeping Costs Down

Several factors affect the project’s financial investment. To begin, resources, such as people and things, are needed, all of which have costs.

To keep costs down, project managers can do the following:

  • Find out how much each job in the project plan will cost.
  • Make a project budget based on how much the job will cost.
  • Use the budget plan as a cost guideline to keep costs under control.
  • Keep an eye on all the project prices to ensure you do not exceed budget.
  • Add or deduct the project funds as needed.

Finalize the Project’s Scope and Monitor Changes

Taking care of these jobs is very important to the project’s success. So, you need to set priorities for your jobs to plan and assign resources correctly when handling scope.

To keep track of the scope, you can do the following:

  • Make a list of the tasks needed to complete the project.
  • Set up communication channels and keep everyone on the same page.
  • Keep track of all the changes made to the project scope and use change orders to stop scope creep.
  • Track all the activities within the project’s boundaries using task management tools and methods.

Keep Track of Time and Hit Deadlines

At its most basic, the project schedule is the estimated time needed to finish or make the end product.

To keep track of time, you can try the following:

  • Create a project plan, set up task sequences, and track each task’s length.
  • Create rules, instructions, and paperwork for planning, executing, and monitoring the project schedule.
  • Using a resource plan to make good use of resources will help you avoid bottlenecks.
  • To see if projects are on track, compare the baseline schedule to the actual results.

 

Best Practices When Managing the Iron Triangle

 

In this section, we have listed a few tips and tricks you can incorporate when managing the Iron Triangle.

Try to Stick to the Plan

Once the client has agreed on the rules, stick to the established Iron Triangle to keep your project on track. Do not rely on the triple constraints to make frequent changes, as these can lead to delays.

Know Your Priorities

Deciding on the most important project limits will help maintain the triangle balance and hence guide smarter choices.

Add Constraints if Needed

You may, if necessary, include limitations, including quality and hazards, to guarantee effective and successful project completion.

Consult With Team Members and Stakeholders

Talk to other stakeholders first about altering any of the triple project management limitations. Opinions from a different angle or viewpoint can help you strike the right balance of all factors.

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