8 Hidden Costs of Commercial Construction Projects to Avoid (Infographic)
There are many unforeseen cost overruns in construction projects, being aware of what these are and working with an experienced construction management company can help avoid many of these problems in the first place.
1: Existing Condition adding to Commercial Construction Costs (Skeletons in the closet)
When working with an existing structure, a host of problems can arise - from problems with HVAC, electrical wiring to asbestos. Development of a former industrial site can uncover hazardous contaminants on the property or in the soil.
2: Building Code errors: Architects and Designers inexperienced with local building codes
Using an inexperienced designer / architect that lacks a thorough knowledge of complying with the design can create costly headaches and modifications during construction.
3: CHANGE ORDERS: Property Owners can add to the cost
The person or business paying for the project can cause significant cost increases when they find out about additional features or needs they want from the building. These revisions create costly change orders.
4: Poor Timelines: Unrealistic completion times and projections
It can be tempting to want a project delivered by a certain date, and to agree to work that may or may not be completed by that date. Budgeting extra time or planning for unexpected delays is important when designing a project.
5: Biased Specifications: Designer preferences and connections
An architect may specify a brand for a building component that they have a preference for, but it may add to the cost. You may be wanting basic functionality and they use an expensive brand which adds to the cost of the project unnecessarily.
6: Communication Problems: Communication and Management
Lack of proper communication procedures and ongoing meetings between administrative, design, and field crew can create costly headaches. Miscommunications between vendors can create delays in material delivery as well.
7: Jurisdictional Legal Fees, Permits and Prerequisites
All projects require permits and fees paid to the local jurisdictions. Often times, some of these costs may be minimized by excluding construction of features with expensive fees or legal and insurance prerequisites.
8: Accidents, Jobsite Management: Slips and Falls, Damage to Existing Property
Injuries to workers or occupants, as well as damage to physical property can be avoided with proper planning for safety and having sufficient insurance for a project.
Work with a Comprehensive Construction Management Company
Direct Steel prides itself on impeccable project management, design and preventing and minimizing construction cost overruns. We have worked on extensive commercial and governement development projects in the retail, office, industrial, military, manufacturing and recreational verticals. Our years of experience and knowledge of local code requirements saves customers headaches and money. Contact us today to discuss concerns or needs of your next construction project.