How to Control Costs During Construction
Construction project costs can quickly spiral out of control if deliberate measures aren’t set in place. At Headwaters Construction, Inc., we pride ourselves in being able to deliver, on a consistent basis, completed projects that are within budget regardless of the fluidity associated with commercial construction projects. Here are some of the concepts that guide and help us to control costs during construction.
It can be daunting to forecast a construction budget correctly, but this activity is an important one if a commercial construction company is to remain profitable. A budget forecast not only controls the overall costs but also protects the profits of the tilt-up construction company.
At Headwaters Construction Inc., we are always very transparent with our clients.
Project Scope Definition
Another concept that has served us in good stead over the years is a retail renovation or commercial construction scope definition. We never get started on any project before we have clearly mapped out the specific deliverables agreed upon with the client.
That notwithstanding, we are cognizant of the fact that project scopes aren’t static, so we are always ready to adjust as and when the need arises during the execution of a given project. The cost implications of any scope changes are carefully weighed and integrated into the budget forecast, as well as all our other cost management mechanisms.
We have mastered the art of being specific in everything that we do, such as when talking to employees at a job site, when renting equipment, when assigning projects, and any other construction-related activity.
We are well aware that when we are specific, we go a long way in saving money and time because no one will second-guess what is expected or required. For example, when we need to rent a piece of equipment (a heavy-duty crane, for example) during a tilt-up construction project, we first forecast how much time will be required for that equipment to perform the needed work. Thereafter, we rent the equipment for that duration for which we need it and no more. In this way, we keep our costs minimal since no equipment that was rented will sit idle just because we paid for it, and it isn’t yet time to return it.
Forecasting Resource Usage
When you are specific about what needs to be done, you make it a little easier to forecast how you will be using the resources available to you during the commercial construction project.
Forecasting resource usage may not always be as accurate as we would like it to be, but the effort helps to keep a handle on various costs that can easily spiral out of hand.
Keeping Accurate Records
If it hasn’t been captured in writing, it doesn’t exist. At Headwaters Construction, we are sticklers for record-keeping and make sure that we are as accurate as possible when documenting everything connected to a commercial construction or renovation project.
We use project management software that takes charge of everything from equipment tracking, punch lists, pricing, and submittal tracking, and everything in-between.
By keeping those five concepts in mind, we get off to a good start on every project that we undertake, and by putting those concepts into practice, we make it possible to keep project costs manageable from start to finish. If you are tired of commercial builders who can’t seem to keep costs in check, get in touch with Headwaters Construction, Inc. You will experience for yourself how high-quality commercial construction can be completed without overshooting the available budget.