Commercial construction cost overruns are a common problem when you are building or renovating. Fortunately, there are things you can do to prevent or reduce construction cost overruns so that your project stays on track. Being aware of why a cost overrun in construction projects occurs helps you dodge these hidden outlays before they wreak havoc on your budget.
Top Commercial Construction Cost Overruns
Construction Estimate Issues
Sometimes, the construction estimate that you opt for when selecting a contractor sets the stage for commercial cost overruns. An inexperienced commercial construction estimator may misjudge your project’s requirements. Alternately, a commercial contractor intent on securing your business with a low bid may leave out essential items. Unrealistic construction estimates may keep the projected price tag low, but they ultimately lead to higher total costs. After all, it is more expensive to make a change order once construction or renovation begins. To avoid building construction cost issues, don’t just accept the lowest bid. Instead, review all contractor bids thoroughly. Make sure they include all aspects of the project and choose a reputable, experienced commercial construction company.
A design that is inaccurate or incomplete, fails to follow the relevant building codes, or is simply poorly done can necessitate expensive changes. Working with professionals with proven track records can reduce the likelihood of this problem. Being thorough in the pre-construction planning phase also helps prevent serious design errors. It allows potential problems to be identified and corrected before any construction begins.
Additional reading: Preconstruction Services
Surprises on Site
No matter how carefully you plan a commercial building construction project, unexpected things can still happen. You can’t always prevent unpleasant surprises, so leaving room in your budget is wise. Having an experienced construction management company at the helm can also help minimize the impact of the unexpected on your commercial construction budget.
A change order is exactly what it sounds like. Whether prompted by a design issue or a change of heart, change orders almost always increase the cost of a project. They also tend to cause delays, which can further add to a project’s price tag. How do you limit the number of change orders? Taking the time to be thorough and detailed in your planning is a good strategy.
Additional Reading: How to Avoid or Minimize Change Orders
Poor Project Management
A machine only runs smoothly when you’ve got the right pieces in the proper places at the correct times. The same is true of commercial construction projects. Poor communication and ineffective management can create gridlock, unnecessary duplications and frustrating delays. That inefficiency can cost you time and money. What can you do to keep your project on track? Work with a commercial contractor who has experience handling projects like yours and a reputation for quality. CBF Contracting follows these 4 Stages of Construction Project Management.
Do you have questions about how to avoid commercial cost overruns? Would you like to learn more about how to keep your commercial building cost under control? Turn to CBF Contracting. We are a full-service commercial construction company serving businesses in Pennsylvania, Eastern Ohio and Western New York.
We get the job done right the first time. We offer the skilled preplanning, design, management, engineering and construction expertise needed for a successful project. Contact us today at 814-745-3000 to discuss your next commercial construction project or request an estimate.