The study of key quality factors relating to construction project processes in Bosnia and Herzegovina and Croatia has revealed that these factors are not accepted similarly by investors, contractors/subcontractors and project managers/consultants/designers. The first four ranked factors are: coordination of participants, communication, expertise/ knowledge, and planning and control, with various priorities among the mentioned participants. The study has also revealed that the significance of individual quality factors differs during various phases of construction projects depending on differing management standpoints.

This paper will show the results of research PM in construction industry of Bosnia and Herzegovina. The project management in B&H is not accepted and acknowledged widely within this industry, primarily due to the current legal regulations. Construction companies in B&H are not at an enviable stage of project management in both building and civil engineering sectors. The research results point *out that there is a noticeable difference in human interaction and the application of project management techniques, depending on the company. Without increasing the involvement and the implementation of programmed computer software for this purpose, PM cannot be present in B&H.

An estimated 20 % of the current Gross Domestic Product (GDP) in the world today appertains to the project management (PM). However, the legal norms in Bosnia and Herzegovina (BH) still do not acknowledge the project management sector. There is a heavy accent on this issue in the civil engineering sector, which is traditionally a project-oriented economy branch. The research results presented in this study disclose that the civil engineering sector in BH still does not recognize the project management area, and does not apply the PM in this sector's daily processes. Furthermore, the results indicate that solid understanding of the project phases and sub-phases is one of the key factors for the successful project completion and its efficient realization while utilizing all available resources to their full potential. The study also presents a distinctive phase model by which construction companies manage projects in BH, and points out a further need for establishment of a unified project management methodology, which would contribute in acceptance of the project management in BH.