A project’s success depends on how teams are organized and lines of authority are defined.

The organizational structure determines how communication flows and decisions are made.

1. Functional Organization

• Teams grouped by specialization (engineering, procurement, construction).
• The project manager has limited authority; coordination is slow.

Best for: Routine or departmental projects.

2. Projectized Organization

• All resources directly report to the Project Manager.
• Decisions are fast; accountability is clear.

Best for: Large, complex, time-bound projects.

3. Matrix Organization

• A hybrid model where resources report to both functional and project managers.
• Encourages collaboration but requires clear communication.

Best for: Organizations handling multiple projects simultaneously.

4. Construction Project Team Hierarchy

Typical roles:

• Project Manager – overall responsibility
• Construction Manager / Site Engineer – daily operations
• Planning & Billing Engineer – schedule and cost tracking
• Procurement Officer – materials and logistics
• Quality and Safety Officer – compliance and inspection
• Contractor / Foreman / Crew – field execution