Taking on financial risk is an inherent part of taking on a construction project. Being prudent with each decision can help reduce the risks associated with a project and help ensure that one party is not bearing an undue amount of risk over the others.
Here are some ways you can protect yourself as a project owner from unexpected and unnecessary financial risk.
- Hire only reputable and experienced general contractors – One of the best ways to protect yourself is to do your due diligence when hiring construction partners. If a GC has a reputation for consistently delivering successful projects on time and on budget, you should feel confident that they will very likely continue to do the same for you. Call references, confirm that they are licensed and insured, and ask them tough questions specific to your project.
- Thoroughly review your contracts – If a dispute were to arise once construction is underway, all the finger-pointing will lead directly back to your contract. What did both parties agree to before work even began? Before agreeing to a project, make sure you’ve examined the contract thoroughly and enlisted the advice of an attorney.
- Insist on pre-construction planning – One reason many construction projects encounter cost overruns is because the team failed to adequately plan for all possible scenarios. With every change order once construction is underway comes added costs and added time. To reduce risk – both financially and in terms of the project’s scope itself – take the time to plan, plan, plan. Your GC should insist on pre-construction and be highly adept at navigating all potential project scenarios. Being able to predict the future helps reduce unforeseen risk, and therefore can save you time and money.
Financial risk and construction can go hand-in-hand, but there are ways to reduce uncertainty and unwanted financial burdens as an owner by carefully selecting your general contractor and being particularly thorough and attentive during the earliest phases of construction.
As you plan your next South Florida project, please get in touch with us at Seacoast Construction. We’ve been delivering exceptional builds throughout the Dade, Broward and Palm Beach Counties for the past 20+ years and are ready to help you with your next build.
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