Waste and expense are the nightmare of anyone involved in a construction project.
Streamline workflows and reduce construction costs; we all want that. Staying within your budget is essential to the success of your business.
It's also essential that you're proactive and well-informed when it comes to implementing systems and strategies that can cut costs. Here are seven key tips for controlling overspending, completing projects on time and on budget.
01|Use****accurate information right from the start
At the start of every project, while you're still in the pre-construction phase, it's very important to ensure that your quotations are accurate and complete. Accuracy is crucial, and mistakes made at this early stage can have serious financial consequences over the course of the project. Mock-ups enriched with pricing and stock information can help you draw up an accurate quotation. Make sure you're involved at an advanced stage too, so that both you and the customer have a clear idea of all the options and costs involved.
02| Identify risks and uncertainties at an early stage
It's important to identify risks and uncertainties right from the start. This will save considerable time later on in the project. It is also advisable to attribute cost and time implications to all identified risks. Otherwise, it will be difficult to analyze the potential impact of these risks on project results.
It's also important to remember that uncertainty is not synonymous with risk. Uncertainty relates to circumstances or events that are not well known, whereas risk is the consequence of an event whose probability is statistically determined. However, both can be costly if not identified and, where possible, avoided.
03| Develop good relations with all stakeholders
Establishing good working relationships with your installers and suppliers can save you money on your projects. These established relationships let people know that their products will be considered for future projects, and be open to price negotiation.
Negotiating and obtaining the best rates from suppliers and installers is one of the most common ways to reduce your company's overheads. It also allows you to build a relationship in which you can rely on mutual trust, respect and quality time and time again.
04 | Incorporating prefabricated elements
Compared with traditional methods, prefabrication of components results in a faster, more efficient process and higher-quality installation. Integrating prefabricated elements into the construction process saves time and money. By preparing components as much as possible in a clean workshop, site traffic is reduced and many complications and delays are eliminated.
Today, it only takes a few seconds for changes to be communicated to all stakeholders: With 3D models and mobile technology, augmented and mixed reality, it's much easier to ensure that everyone has the same information at the same time. For example, it is possible to generate prefabricated drawings with cutting lists for the workshop directly from a BIM model. Parts can then be prepared in a clean workshop, and on-site mechanics no longer need to measure tube lengths themselves or calculate saw dimensions.
05 | Adopt a working method that avoids reprocessing
Not only is reprocessing extremely costly, it also delays delivery and often leads to tension between the various parties involved in a project. In the worst case, it can lead to litigation and even damage a company's reputation and ability to win contracts.
One of the most effective cost-cutting measures you can take is to avoid (or at least minimize) the need for rework. Fortunately, technology and changes in the way the industry operates make this process, at least in theory, simpler than ever before.
Thanks to new technologies and associated processes, such as BIM, it's now possible to be much more precise in each of these areas (and others). While it may seem difficult to change your corporate culture from the "traditional" way of working, a culture fuelled by the collaborative philosophy that underpins BIM and its increased precision will pay dividends. Similarly, robotized total stations, 3D laser scanners or advanced design and detailing software may seem like a huge investment, but as these technologies make rework unnecessary, you'll quickly reap the rewards in terms of time and cost.
06| Hiring versatile employees
Employees who can perform more than one type of work are unaffordable, and achieving optimum productivity for each employee is a guarantee of success. During the recruitment process, look for employees who can multi-task. With a multi-skilled team, you get more done with less input. Treat your employees well and invest in their skills development.
07| Delivering on time
Timely completion and delivery of a project is essential to reduce costs. It's inevitable that a delay in project completion will result in additional payments to third parties, which in turn leads to additional costs. Ultimately, this also has an impact on your reputation. It makes it increasingly difficult to receive orders, and will eventually lead regular customers to turn to your competitors.
We're working in a time of great change in the construction industry, but that shouldn't stop us from cutting costs. Fortunately, technological developments and innovations offer ideal opportunities to control construction costs.
