Ensuring that your commercial construction project stays on schedule and within budget can be a challenge, especially if you don’t have a dedicated commercial construction company managing and monitoring the project for you.
Without construction management services in place, your commercial construction project can go over budget for a variety of reasons. While there is reason to assign extra expenses to delays and even material loss due to unforeseen circumstances, there are many other problems that can cause budget issues and these are usually as a result of poor planning and lack of budgeting skills and experience.
Tips for staying on budget for your construction project
If you take the time to review your past commercial construction projects, you might find a noticeable pattern in your cost overruns. It’s easy to overlook these concerns and if you want to avoid cost overruns in the future, manage the following 3 areas of weakness:
- Lack of complete design information – this is often a result of project owners providing the contractor with the architect’s plans that aren’t entirely complete. In some instances, these plans are only general design intents that don’t include the full and detailed plans and specifications. This can result in additional money being required for the additional work. Ensure that you have a clearly defined building plan and specification in place and that all contractors and service providers are well informed thereof.
- Accepting the lowest bid – bids should only be accepted on their merit and what is being offered, but often they are accepted merely on the costs presented. In many instances, the lowest bid can result in extra expenses in the long run. To avoid cost overruns and nasty surprises, choose contractors that have a sound reputation, a good track record and proven ability to complete projects according to spec and within budget.
- Incomplete document reviewing before accepting bids – ensure that all documents and specifications are meticulously checked over before coming to any agreements with contractors. Contractors may require additional compensation for tasks that weren’t specifically included in the plans or documents. It is imperative to ensure that all bidders confirm that they have read the documents thoroughly and fully understand the scope of the project.
Here is a summary of why your commercial construction project may exceed its assigned budget, as a result of the above weaknesses:
- Project scope isn’t well defined.
- Unrealistic scheduling of project tasks.
- Estimating errors / lack of costing knowledge and experience in the industry.
- Tasks aren’t completed in the correct sequence causing additional delays and costs.
- Inferior quality project management and control processes.
- Increased material prices and inability to negotiate effectively with suppliers and contractors.
Construction management services that will help you to reduce project costs
If you would like to ensure that your project is completed on time, according to spec and within your set budget take the time to consider our construction management services at MDS Builders.
We will ensure that your best interests are a top priority while we manage your building or construction project. Contact us via email or telephone and find out more about outsourcing your construction project management today.