TIPS FOR MANAGING YOUR CONSTRUCTION BUDGET & TIMELINE
WITH STAKEHOLDERS INVESTING IN YOUR CONSTRUCTION PROJECT AND WANTING TO GET A PROFIT AND MEET DEADLINES, MANAGING YOUR BUDGET AND TIMELINES ARE ESSENTIAL! HERE ARE FIVE OF OUR FAVORITE TIPS FOR KEEPING YOUR PROJECT ON TRACK.
START WITH ACCURATE ESTIMATES.
An accurate cost estimate will get the construction project off to a good start. The project manager should ask for multiple bids to establish cost baselines and determine average costs. This will help develop an accurate budget.
CREATE A CONSTRUCTION TIMELINE.
A construction timeline outlines how quickly the work will get done and how the job will get done. This schedule defines the sequence and method in which your team will put the materials in place. Thus, the earlier you document and communicate the timeline to the project team, the better. When scheduling, it is important to understand the scope of work and how each component of the project relates to the timeline. By creating a reasonable schedule, you avoid improvisation imposed by last-minute surprises or lack of foresight. This benefits a project by preventing unnecessary costs and delays.
CONTROL COSTS THROUGHOUT.
A talented project manager will closely monitor the costs from the beginning of the timeline, checking bills against estimates and quotes. There are several potential cost challenges that might arise during a construction project, including unexpected delays, last-minute change orders, or unforeseen obstacles. When this happens, an extra buffer in the budget can make a world of difference.
TAKE ADVANTAGE OF TECHNOLOGY.
Construction budget management and estimation tools can be beneficial in creating accurate estimates and avoiding cost overruns. Software tools and best practices will not only offer savings throughout a project, but also help prevent budgeting errors such as:
- Inaccurate estimation of project costs
- Inadequate project planning
- Poor stakeholder communication
COMMUNICATE. COMMUNICATE. COMMUNICATE.
We can’t stress this one enough. Regular effective communication with stakeholders and your team can make the difference between a successful construction project and a complete disaster! It’s important to keep the entire team informed about the project’s costs and progress at every meeting, so they know whether things are on track, over, or under budget. It also helps them gauge if the project timeline is on schedule. When someone is not on board or is creating problems, communicate about it as soon as possible. Differing opinions are to be expected but can be handled professionally with clear communication to ensure the success of a project.