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Controlling construction costsThe Top Reasons For Cost Control Nightmares At Your Construction Site

Indecisive clients and the labor costs associated with delays can eat away at your budget.

Nightmares still happen to even the biggest construction projects, where costs and revenue are not properly estimated. From the first bid to the completion of a project, construction companies have to be experts at managing cost, expenditures and expectations. At CLC, we know this can be a challenging task. These are some of the pitfalls that could cause a cost control nightmare during your next project.

Agreeing to the vision without looking ahead

Sometimes the architect’s vision is so compelling that it receives a green light, even if it’s not achievable. Being aware of what is physically accomplishable in the space you’re working in is key to matching the architect or designer’s vision with something your crew can carry out. Additional touches or add-ons to a project can seem like a great idea on paper, but when considering the material and labor costs of the project may mean delays and changings no one is expecting.

Ambivalent or Indecisive clients

Clients are the drivers of change in your project, and when they are indecisive and change their minds frequently budgets can go awry. Changing materials and timelines means expenses the client isn’t always anticipating. And clients who can’t make decisions, or who leave big decisions up to the contractor, may cause delays that add to labor costs.

How to increase construction cost control

Use specialist construction cost estimating software to properly estimate the cost and then keep expenditure and revenue in synch.
Beware the temptation of being unrealistically optimistic – both from the client’s and your point of view.
Keep the clients in check – if their demands become unrealistic within the budget, tell them early. Let them know the decisions they absolutely have to make in order to keep the project moving forward.
Consider a variable staffing strategy from a professional labor staffing company. Labor costs can add up quickly, and completing a project on time may mean extra craftsmen you don’t have. CLC provides skilled temporary labors you can count on to get the job done.

 

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