Learning The “Secrets” of Construction

Staying on a Budget with the Commercial Construction Project

Keeping that commercial construction project on a budget would require determination, creativity and vigilance as well as diplomacy. It would start at the moment that the project is conceived and would continue throughout the whole period of construction.

There are various reasons why the commercial construction project is going to 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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You have to make sure that you have that complete design document. A project owner can provide the architect’s plan as well as specifications to the contractor knowing that each detail has been known. The agreement of such owner-architect would often need the architect to show the specifications and plans of the general design. Complete details may not be available. The lack such complete design information would put the contractor in such position to demand more cash for work that had not been specified in the plans and specs. As a result, multiple change orders and also budget overruns can definitely happen.
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It is very important that the owner-architect agreement must specify that the architect will offer a 100 percent complete set of drawings, specs as well as other documents prepared by engineers and the others who are working on the project.

Before you make a bid, you need to review the documents first. The contractor may look for additional compensation for the work needed that the contractor would say aren’t shown on the plans and specifications. The project owner’s contract language need to include that all of the contractors who are interested to submit bids must ensure that they have reviewed the specifications and plans and that they know the scope and the intent of the project as well. The price should cover all of the required work to fulfill the express design intent.

The project owner may face various pressures from the investors, shareholders and also the board members to receive the lowest bid. But the lowest bidder is not always the best. Know that underbidding can be costly and risky. Work with trusted contractors with completed projects same to the current 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.