To avoid escalating construction costs and the risk of losing money on your commercial investment, it’s important to identify and avoid cost overruns. In the construction industry, there are many different factors that can affect cost overruns.
One of the most common is change orders. This happens when someone makes changes to the initial contract which results in the costs of material and labor unexpectedly increasing for the building owner.
There are many ways to avoid these cost overruns, and we’ve listed a five of them here:
2. Factor in unforeseen circumstances
When creating the schedule for the project, unforeseen circumstances should be factored in, such as unexpected site conditions and logically working in days that might be wasted due to bad weather. While having a strict budget and timeframe is ideal, it’s best to be realistic in terms of overall expectations, especially in situations where the circumstances are out of anyone’s control.
3. Avoid schedule changes
Changes to the original plan can almost guarantee the risk of cost overruns. It’s important to stick to a strict schedule once it has been decided for a particular project and make note of any changes or delays immediately. This will prevent losing time on changes to the plan, and will prevent unexpected expenses on the builder’s end.
4. Stick to the budget
An increase in the project scope can significantly impact the cost of your project. Stick to a specific budget and continuously check in to make sure the budget is being met along with quality standards. Avoid material substitutions or changes if at all possible once the plan has been agreed upon, as this will ultimately save money.
5. Stay involved in the process
Staying involved in the process from beginning to end can help you to feel confident the construction project is running smoothly – on time, on budget and on schedule. While you have respect for each member’s function in the commercial building team, they should understand your need for awareness and information.
BC Comfort has specific expertise in ensuring your next construction project stays on track and can prevent overruns from cropping up, helping you save both time and money. For more information, contact our Design Team Experts today.