There are three major ways to reduce the cost of your construction.
Be wary of excavation costs
Excavation costs are regularly put out as a Provisional Sum meaning that you have only budgeted a set allowance for the works. Any more costs incurred past that set allowance is covered by the owner. But what if the owner runs out of money or flat out refuses to pay? VCAT tends to point the finger at the builder in this scenario, as it was the builder who provided the provisional sum in the first place.
The best way around this is to prepare for the unexpected. Have your client pay for some preliminary costs which include soil tests and surveying. If the reports produce any outstanding results, you can be sure to allow a higher provisional sum for excavation costs to avoid any pitfalls during your construction project.
Consider alternative products
Your supplier might be your best friend, but how do you know he is giving you the best deal? There may be alternatives to the products you are used to building with that are more cost effective. For instance, have you considered comparing the costs of stick frames and labour against prefabricated frames? Although the costs for prefabricated frames are more expensive, you tend to save on discounted labour. You could also compare the differences between metal roofing and concrete tiles. Metal roofing involves less trusses, less maintenance and less load.
Create a project plan
The most effective way to managing cost spending is managing a project plan. There are hundreds of ways you can create a Project Plan whether it be in your site diary or using software such as Microsoft Excel or Project. While there is a bit of extra work involved, you may find that laying out the entire project visually may help you identify any problems before they arise.
Now that you are aware of what to look for – the next step is to take action. Just remember to gather and compare quotes and be open to alternative methods there are to what you are used to. Also be aware to keep an eye on variable costs from spiraling out of control. There are many ways you can reduce your construction costs and they are mainly made from precise planning and forward thinking!