“We must consult our means rather than our wishes.” – George Washington
The man who had a hand in building America will have a better say when it comes to budgeting. Building construction project budget is something that is determined considering several factors that will affect the cost of development. This is the reason why the budgeting for any construction project is done before the development even starts from scratch on the site. Because even the foundation will have to be paid for by the developing company, the budget is planned along with the design sessions. A development cost study is undertaken by the developing company. The research is done to determine the costs of development of different parts of the building and the returns gained from it. Construction cost, along with project costs, professional fees, and contingencies are derived from a development cost study. Also, the development budget must include the cost of construction project management, project insurance, fees of survey agents, and the fees for specialists and advisers.
When planning a budget for your construction project, you must always make sure that all the costs of construction must be in close reference to the final completion cost of the project so that the budget does not go overboard. Though at times, the construction project budget may seem to be going overboard after the budget has been finalized and resources have been allocated. There can be various reasons for a construction budget going overboard, but there are things you can do on the initiation stage, which can save the budget from defying limits.
1) Reduce Scope
When the construction budget goes overboard, it can happen due to the size of the construction that you’re trying to achieve for a fixed budget. Reducing the scope of a construction project can help vastly in cutting costs while you have already begun resource allocation. Scope reduction in construction project budgets means that space or area that the building is going to take must be reduced from the original design plan. This will require you to look for spaces and areas in the design that can be removed without changing the primary utilization value of the whole building. This will reduce the construction area by a few square footings. This will not only improve your floor plan but also get rid of space that would have remained underutilized or unutilized after the completion of the project.
Reducing the scope of your project has a lot of deductions on the budgets and will clear off a lot of costs that cause your budget to go overboard. For example, you reduce the size of the construction by 100 square feet, which reduces the cost of laying the foundation for the 100 square feet. Not only does it reduce the area, but it also reduces the cost of extra excavation, site work, floor framing and finishing, wall framing and finishing, ceiling framing and finishing, roofing, insulation, waterproofing, trim work, and also the conservation on energy once the project is finished.
Although when you reduce the area from the design, do remember that not every area can be cut from the plan. The reducing area from the bedroom or living room won’t have much effect on the budget as will removing some part of the kitchen or bathrooms if you’re constructing a house or apartment building. Some areas of a building cost more on construction than others so when you reduce the cost for adding utilities in these areas. You now have a smaller space to allocate the cost of all the plumbing, HVAC systems and insulation.
2) Reduce Complexity
A complex design will always be costly to construct. When the complexity of your design increases, the time taken to come up with ideas to match the level of complexity in construction is more. The more time the project takes, the more money is added to the price of development. The complexity of any building can increase due to several aspects such as complicated floor plans, bump-outs in the plans, lots of angles and curves, complex trimmings, elaborate landscaping, additional decks, elevated ceilings etc.
Adding complex structures to the building will require more than normal time to plan the construction process. While all that is being planned by the contractor, you still have to pay for the labour costs on your property. The trailer cabins and mobile toilets that have to be on the site for the build process also have to be paid for. Removing complexity from your floor plan and building design will remove additional contractor and architect fees.
Reduction of corners and curvatures in your building will also help you reduce the costs from the construction project budget. Having excessive angles and protruding out structures in your building will increase the cost of the foundation framework for a complicated zig-zag structure. Also, cutting down on the number of angles in your design will help you reduce costs that are incurred on laying complex wall-frames, sheathing, trimming, and wall finish. A simple building plan will also make the construction process more efficient as there would be no mistakes from the contractor and the workers.
3) Find Alternative Materials or Systems
Unlike the previous two suggestions. This might not help you much in getting a cost-efficient build, but the amount can be reduced to some extent by using cost-efficient or pocket-friendly materials, and cheaper services for your construction project. Changing the very simple things in the project like countertops, wall sidings or tiling can get you a few results and save you some money for later to get janitorial services for the clean up after the construction project. Although changing material still won’t be changing the labour cost of the project for you, because the price of the materials will be reduced but the installation charge demanded by the workers will still be the same. For more reduction on your budget, you can go with larger alternatives like changing the wall systems and choosing prefab construction instead of onsite construction.
Planning a construction project budget requires an intuitive mindset that helps you get to the final stage of construction by looking for the costs of every factor affecting the construction. So when you have a construction facility to take care of, you can hire integrated facility services. Just contact Peakman Management Group.