In our modern society, nearly every aspect and outcome in construction is reliant on the budget. As a project manager, you may struggle to keep within a strict budget, especially when those finances are intended for a large construction project. The nature of larger projects is a complex combination of many moving parts and people that all need to work in unison to ensure a cost-effective outcome. From the ground-breaking ceremony to the opening celebration, it’s important to follow a system to help you minimize costly surprises and expensive setbacks. Choosing the best option among numerous steel fabrication companies, for example, will help you to optimize your project with faster and safer results. Sanilac Steel is one of those outfits; our structural steel fabricators in Michigan have been in the business of creating optimal outcomes since 1967. We strive to deliver the best steel structure design, fabrication, and erection services in the state. Our top priority is the safety of your site, delivering quality workmanship that helps to create recurring benefits for the project.
We aim to deliver comprehensive structural steel services that truly optimize your outcome. Today, we’ll discuss a few brief tips that may help to keep your budget under control. When you are done, be sure to contact our steel company to see how we can enhance your jobsite!
Building Your Cost Estimates
The best way to set the standard for cost-effective building services is to develop a preliminary budget up front. It pays to utilize building software to assist in accurately calculating the costs of each task per square footage, per level, and so on. Builders who fail to thoroughly plan the labor and material costs of their project in addition to the cost of land and potential setbacks may face serious gaps in funding. Contractors who have to deal with unexpected jobs will need to secure the manpower and resources to cover the difference, creating additional costs that can quickly add up. Architects who do not provide a complete building design may end up being stuck with the bill. No matter the scope of your project and who is involved, it pays to develop an inclusive budget that accurately accounts for setbacks, material costs, and more.
Confirming Building Costs
Once you have a plan in place, it’s time to go about confirming the figures to hone in on the true cost. Failing to follow up on project estimates can create serious problems for you financially. It’s important to check that all work and materials expected in the plan are clearly defined. Once this is done, it’s time to collect bids and confirm bids to hone in on the final figure. Add up all of your updated costs and set a percentage over that figure to account for unplanned problems and unexpected expenses. Setting a contingency of 25 percent, for example, means you’ve added a quarter of your initial budget on top of the total cost as an insurance measure to ensure that you are not running a deficit. A lot of individuals will start with a larger contingency value to account for discrepancies and inaccuracies in planning. As the project advances, you can hone in on the overall progress and reduce your contingent amount.
Avoiding Lowball Bids
The process of collecting bids will help greatly in determining your total cost. When a suspiciously low bid comes in, we recommend investigating it to determine why the estimated cost will be so low. If the price sounds too good to be true, it probably is! In some cases, companies who put in their competitive quotes to secure the job will return to you later with requests for financing to effectively cover all of the costs. Project managers who happily signed on a cost-effective subcontractor may soon find that they are losing more money through the project than if they had chosen a higher bid initially. When accepting bids, it’s important to discuss clearly with your construction crews to ensure that the expectations and costs are clear. While not a fun task, many professionals aim to clearly outline their exact expectations to leave no wiggle room for inaccurate bids and inefficient labor.
Determining your budget for a project in a comprehensive and careful manner will help greatly in setting the pace for a quality outcome. In many cases, projects that were not properly prepared face budgeting issues, which can bring the expedient progress of your job site to a screeching halt. From material costs to paying for labor, your project relies on proper financing to avoid potentially devastating setbacks. Next time, we’ll continue this blog by highlighting a few more cost-saving measures that may prove helpful in keeping your project running optimally.
Sanilac Steel is here to support your project with the safest and most cost-effective services possible. Our structural steel fabricators in Michigan have decades of experience in offering top-notch solutions for our clients. From structural steel design to fabrication and erection services, the Sanilac team does it all. Contact us today to receive an accurate quote for your upcoming project!