Many Construction Projects Begin with Demolition: Learn How to Keep the Estimates Accurate
Posted on October 14, 2019
As a company that decides when and how much to lend construction companies, it is in your best interest to know how they can keep their costs down and what is likely to result in them being wildly overbudget. Today at Fund Control we are focusing on construction projects that start with demolition and how to keep the demolitions estimates accurate. If you have questions about fund control software, contact us at 800-625-5972 to learn more.
Start by Truly Understanding Overhead Costs
One of the most important aspects of accurate demolition estimation is knowing what your overhead costs are. Also known as indirect or fixed expenses, these include costs that may not seem as though they have anything to do with the demolition but must be paid, such as rent, administrative costs, and marketing.
Know the Costs of the Project
Of course, you will also need to know what the cost of the actual project is. Note that demolition companies – just like construction companies and disbursement companies and most other companies – do not provide services in a vacuum. Before breaking ground it is essential that you know what the bottom line costs of the project will be.
Determine What Permits and Other Special Licensure Are Required
One of the easiest ways to go over budget is to get hit with a surprise permit or licensure you did not see coming. Even more expensive is finding out after the project is complete that something was required and getting hit with a fine.
Calculate Total Hauling and Landfill Costs
In many cases, hauling and landfill costs end up being one of the most expensive aspects of a job. No matter where the material is going, whether it is being recycled, resole, or sent to a landfill, there will be cost involved. Not only should you have financial quotes ahead of time, but you should be sure you know who is doing the heavy lifting. It may be that you will also need to hire a third party to haul the materials.
Equipment Allocation and Costs Must Be Complete
Once again, a common issue is construction companies not considering all the equipment that will be needed. They may think they can use one piece of equipment for numerous needs but do they have time to use that machine for all needs? Or will they need to rent additional equipment so the entire job can be completed faster?
At Fund Control we are proud to offer unique ways for our clients to communicate within the construction world and for fund control companies to keep their costs down and compliance up. Feel free to call us at 800-625-5972 if you would like a unique demo to show you just what we can do.