Starting a new building project is an exciting time. You have ideas on how you want it to be built and what it will look like. However, those expectations can quickly go over budget. For your next project, follow these five tips:
Set a Budget & Know Your Limits
While this piece of advice seems like a no-brainer, projects can and do can get out of control when it comes to costs. Develop a realistic budget that takes into consideration:
- Construction costs: Total expenses for labor, materials, and services
- Project costs: Assets needed to complete a project, like engineering and design processes
- Funding: How the project will be paid for and if it’s a reliable flow of money
By setting a budget, you will know your limits and prevent the project from getting out of control.
Always Have a Well-Defined Plan
During your construction project, always go into it with a plan that is both complete and well-defined. In doing so, everyone is on the same page and there are no surprises. Building plans can get expensive when they aren’t complete and sent to the contractor, resulting in more money spent to complete them. In addition, last-minute decisions are usually the ones we regret the most, so you don’t want to make any blueprint-level decisions during construction. A complete, detailed plan will also help the building project stay on schedule.
Double Check Documents before Accepting Bids
When you are reviewing documents for bids, it’s important that you completely review and double check them before accepting. In doing so, you can see if the contractor has additional expenses and understand the project.
Remember, the lowest bid isn’t always the best one. If you become blinded by the low cost, you can run into problems like low-quality material, which can cost you more in the long run.
Invest in Modular or Prefabricated Construction Wherever Possible
Choosing modular or prefabricated construction over traditional construction can also help you save money on your project. Unlike traditional construction, these modular construction options can be built in half the time with fewer contractors. Even if you have your heart set on a traditional building, relying on modular components such as wall partitions can save you a lot of money in your overall budget. In addition, it’s greener and will help save money in maintenance costs.
Avoid Excessive Change Orders
While it’s understandable that some things may change during a construction project, like inaccurate specifications, avoid excess change orders. For example, there is a shortage of the flooring originally ordered and you have to make a substitution. As such, it takes longer for the building to be completed and the cost of materials can get higher.