Keeping Your Project Cost-Effective

Project Cost-Effective

They say that money makes the world go round, and this is no different for the world of construction. With a planned budget you can get the job done well, on time and within the margin you set. To help keep your project cost-effective, here are some tips to properly manage your funds.

Estimate Hours Properly

Projects that go over-budget can typically trace their issues back to the initial planning stage and see that the original plan was flawed. This can come about by either the project manager underestimating the number of hours a project would take, or too many hours being cut off to lower the price and secure the sale. Both scenarios usually end up with the same bad result, so it’s important that when building a proposal, you take extra care in calculating and estimating the hours. If possible, add a few hours to allow for wiggle room in case things go wrong, and properly explain this to the client.

Budget for Surprises

Leaning into the idea of wiggle room, budgeting for surprises is all about expecting the unexpected. Factoring in things that are out of your control such as external environmental considerations that can impact pricing of supplies, recourses, labour, financing, products and service shortages and so on, will help you be prepared. Surprises can come up at any time and can prove costly but if you have your budget set to accommodate them, you can resume your project without significant setbacks.

Revisit and Review

The initial planning stage of your budget is essential, as is accounting for surprises, but even if you aren’t hit with any drastic changes, we highly recommend revisiting and reviewing your project budget regularly. Frequent budget oversight is crucial to preventing spending getting out of hand, as a little over budget will not break the bank but a 50 percent overrun can lead to major issues. It’s better to be safe than sorry when it comes to client’s money, so keep track and discuss budget adjustments with your clients throughout the process.

Keep Your Team Informed and Accountable

Ensuring that all of your workers understand the current budget status will help keep you on top of things. The more people who know the plan, the more people there are to speak out about discrepancies, costly issues that may arise, and keep watch of project charges. Keeping your team informed ensures they know the hours they have worked and understand what project they were working on.

Get Your Cost Estimated by The Experts

Don’t let costs get the better of your project, stay on top of the estimations and invest in a trained company to help. At OptiBuild Services we can complete all of your takeoff and estimating. Find out more today!