While new buildings seem like they’re cropping up everywhere and construction contractors have a booming business, the reality is that most job quotes only include a 6% profit margin.
Much of the quote you’ve been priced for your next construction project includes material and labor. Unless you have the skills to do the work yourself and get a good discount with your local hardware store, it’s a safer and more cost-effective step to hire a construction company.
Still, remodeling or building a residence or commercial building is rarely cheap. Knowing what is involved in the process makes it easier to budget for the project. Check out these tips to successfully work with a construction company and plan your funds optimally.
1. Start (and Continue) With Clear Communication
Communication is essential to deciding which construction company to work with, from the initial explanation of your goals to the project quote you’re given.
Clear communication ensures both parties understand what is involved in the work. It begins with the first contact when the person or group hiring a construction manager explains their ultimate vision. This step is frequently completed with the help of an architect, who often works with a construction company with which they have a good relationship.
Throughout the first stages, the more back-and-forth discussions involved, the fewer misunderstandings occur. Determining the project scope and deadlines early and walking through the plan before the work begins helps prevent delays and ensures both parties are aware of the budget.
2. Supervise But Delegate
There are two extremes that people can take when they hire a construction company: they decide to entrust all of the work to the party they hired and go completely hands-off, or they become “helicopter” clients and must know every milestone as it is completed.
But an in-between option exists. Once you’ve worked with the architect and project manager and know the scope and expectations, consider delegating the work that only they can do to them. Then, you can supervise occasionally, checking in for agreed-upon project status updates.
Delegating appropriately saves time, but more importantly, it ensures the project manager can focus on the job. This, in turn, keeps your work running on time and budget.
3. Understand You’re a Team
When you sign a contract to work with a construction company, you’ve become part of a team. Working together is the most straightforward way to a successful finished project.
Any time there’s unnecessary conflict, it translates to delays and increased expense. You or the project manager will likely disagree with some things, but handling them professionally helps the team resolve the issue quickly and satisfactorily.
4. Discuss Alternative Options
Although the architectural team and the construction company have the expertise in their industries, their suggested ways aren’t always the only ways available. If you’re not comfortable with a suggestion because of your budget concerns, ask for alternative options.
New, cutting-edge technologies are entering the construction industry regularly. For instance, in this article, FMP Construction discusses how to use a method called cast-in-place to erect concrete structures. With cast-in-place, a removable formwork keeps the concrete in place while it dries.
Although hundreds of years old, this method has undergone recent changes, and is now a cost-effective way to create strong, durable, harsh-weather-resistant concrete buildings. Yet, not all construction companies use site-cast concrete, as it’s also known, by default. It’s an alternative option to discuss with your project manager to determine whether the advantages work for you.
Discuss your budget concerns with your construction team, even if you’re not using concrete for your structure. They may know alternatives that will give you a similar finished result at a lesser cost.
5. Read the Invoices
Although it may seem like a basic rule, reading the itemized invoices is a part of working with your construction company that can help you budget better.
Beginning with the initial quote, you’ll see a list of expenses. Depending on the company’s invoicing software, many of these will be rolled together. Review each expense, line by line, and look at the cost. Ask questions about anything that you don’t understand to prevent unexpected costs and misunderstandings later.
Keep in mind that a project quote is always an estimate. Material prices, labor, timelines, and other variables can change, particularly when the project is complex or you’ve requested adjustments from the initial scope.
As you receive invoices throughout the construction process, continue reading the lines and pay attention to any changes. No one wants to be hit with an unexpected higher cost when they were on a tight budget.
Conclusion
Renovating or building a home or commercial property is a complex undertaking, and hiring a professional to help you design and construct the project is a wise approach. With these five tips, you can work together to stay on a timeline and budget as best as possible, eliminating unnecessary problems down the line.
