The Four Tips You Need to Know to Prevent Unnecessary Construction Delays and Surprise Cost Increases
Posted on October 6, 2020
As a professional working in the construction industry, you know how much delays can cost. You know that unexpected costs can cost more than just the amount you pay at the time – they can have a ripple effect that affects your entire project. At Fund Control, we have created award-winning software to help with fund control and other services. Read on to learn four of our tried-and-true tips to help avoid construction delays. Then contact us at 800-625-5972 or online to request a free demo of our innovative software.
- It’s All About the Budget
- Keep Your Expectations High
- Schedule Aggressively – Yet Realistically
- Keep Up with Billing
When we say a comprehensive budget, we are talking about more than just the cost of your project – we are also talking about budgeting time requirements too. As you create the budget, think about the potential of needing to rebalance. Consider what will happen if you must inject equity in your project because of added costs.
The fact of the matter is that between complete the proforma, getting loan committee approval, being awarded building permits, and all the other pre-construction hassles, costs can change, and so can timelines. Your budget should take this into account.
You should always hold those you are working with to high expectations – especially anyone working in a project manager position. Hire the best candidates you can afford, and remember that spending more on better workers can save you thousands and thousands of dollars in the long run. If you know of a good PM, ask if they’re interested, even if they are currently working. You never know who is ready to make a move to a new company.
The key when creating a good construction schedule is that it strikes the right balance between being aggressive and being realistic. You do want to get the project completed as quickly as possible but setting a schedule you can’t meet does no one any good. Set a schedule and use our software to share it with everyone. All parties should be in the loop, including lenders, building inspectors, and major trade partners.
One of the biggest issues is getting behind on billing. You end up with more paperwork than you can handle, confusing about what has been paid and what needs to be paid, and contractors who are upset at their lack of funds. The good news about this issue is that Fund Control is here to provide software that makes it easier than you can imagine to stay up to date on billing issues. Call us now at 800-625-5972 to begin.