How to Stay on a Budget with Your Commercial Construction
Keeping the commercial construction project on a budget requires vigilance, creativity, determination in problem-solving and in diplomacy. This would begin at the moment that the project is conceived and continue throughout the entire period of construction.
There are many reasons why the commercial construction project will go beyond the budget. Some causes simply can’t be assessed enough or budgeted like the delays and material losses which resulted from the natural disaster. However, so many causes would relate to poor planning and also weaknesses in the budgeting process.
The cost overruns on the project’s construction take place even with the very careful planning as well as the control efforts. Some of the common causes for those overruns would include poor estimating methods, lack of the well-defined scope of the project, unanticipated technical issues, escalating prices of materials and many more.
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Ensure that you have such complete document for the design. The owner of the project can give the plan of the architect and specifications to the contractor knowing that every detail has been found out. The owner-architect agreement would often require the architect to show the plans and specs of the general design intent. Complete details may not be available. With the lack of such complete design information this is going to place the contractor in the position to demand more money for work that had not been indicated in the specs and plans. As a result, multiple change orders and also budget overruns can definitely happen.
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It is necessary that the owner-architect agreement must specify that the architects offer 100% complete specs, drawings and other important documents that are prepared by the engineers and those who are involved in the project.
Also, it is necessary that you review the documents properly before you make a bid. The contractor can look for additional compensation for the necessary work which the contractor would say are not shown on the plans as well as specifications. The project owner’s contract language must stipulate that all of the contractors that like to submit bids should affirm that they have reviewed the plans and also the specifications and understand the scope as well as the intent of the project. In order to fulfill such express design intent, the price must cover all the necessary work.
The project owner may face various pressures from the investors, shareholders and also the board members to receive the lowest bid. However, the lowest bidder isn’t at all times the best. You have to know that underbidding can be risky and costly. Find reliable contractors who have already completed the projects same with the present one. The contractor with a great track record of success and on-time builds as well as success in-budget would be more likely to guarantee the same outcomes in the project.