When you embark on a commercial construction project, the expectation should be that the budget you set is the one that is adhered to all the way through to completion –until the final paperwork has been signed and your new building operations are underway.
Unfortunately, in this industry, expectations seem to have gone in the other direction. Budget overruns and project delays can appear to be the norm, depending on which contractor you work with.
And to this, we say “no.” You should too.
With proper planning and execution, there is no reason you should experience budget overruns (or even expect them in the slightest) when it comes to your project. At Seacoast Construction, we follow some surprisingly simple solutions to rein in cost overruns, and it starts with pre-construction. If, during your planning or construction, you encounter any of these red flags, be wary of what it could mean for your bottom line.
5 Risk Factors for Budget Overruns
1) Changes to Scope – Very rarely do projects get smaller once the work is underway. More often than not, it grows or morphs into something other than what was discussed at the outset. Keep costs in check by sticking to the plan.
2) Miscalculating project estimates – Before the project begins, make sure you trust the bid. Inaccurate or unrealistic cost estimates are red flags to your budget. Guard against this by ensuring you have a comprehensive cost breakdown of every line item in your budget during pre-construction.
3) Project mismanagement – Poor management due to either lack of experience, skills or otherwise, can do more than just veer your project off course, it can sink your ship. Be sure to have full trust of your GC team before heading into any commercial project.
4) Delays – Project delays are problematic for more than just the obvious reason. They can be costly if added expenses are required to get the project back on track in terms of labor, materials, permitting, and of course, time.
5) Miscommunication – Insist on frequent status updates to safeguard against miscommunication (or worse, lack of communication) before a problem that could have been solved with a phone call instead results in an added line item.
Cost overruns should not be the norm in commercial construction. Be on alert for any of these red flags, or simply avoid them altogether by getting in touch with us at Seacoast Construction. Our experienced team has more than 20 years of successfully completing builds throughout South Florida.
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