Preliminary Cost Estimation
Before plans are developed, cost estimates are the main source of working out how much a project will cost. However, not everyone can estimate costs accurately. Inaccurate cost estimations can have real consequences on a project and can cause profits to drop drastically. Due to this, it’s worth investing in hiring a construction manager with expertise in cost estimation. Put cost control into your project proposal, using a Construction Proposal Template.
Cost Control
After submitting final plans for a project, you can make a more detailed estimate of costs, which includes materials, labor and time. You need to factor in time, as delayed projects that go over budget can run up a lot of unexpected costs. Estimate future costs too, along with revenue and technical problems, to get a detailed breakdown of costs.
Construction Management Software
Construction management software with data management capabilities will keep everyone working on the job site up to date with any changes to the project. It can also help to keep back-office staff and those working on-site connected to each other, giving everyone a line of communication between everyone on the project.
Mobile construction management software is the ideal solution for a mobile workforce. Everyone, from subcontractors to architects, can get onto one central system to look at project plans and decide if any adjustments to the cost plan will be needed. For example, if a subcontractor who is wiring in the electrics needs a little time due to a delay on materials, or will need to change something they’re doing, they can easily upload this information on the software. The information is then available to everyone, so there are no miscommunications that lead to delays, overspending, or mistakes.
Update Cost Plans
Make sure you analyze and reevaluate cost plans to see if any alternations are needed. If costs are higher than you expected in one area, you can balance out this cost by cutting some costs in another area. Remember that costs can be impacted by things outside of your control as well, such as inflation or a shortage of materials. These can cause prices to fluctuate, so a project that may have been within budget when you planned it can still easily end up over budget when you get to work. Integrate construction management software with your account program to give your key stakeholders real-time updates of labor and costs data, so the right decisions can be made.
Submit Cost Reports
Give costs reports to your client throughout the project to keep them informed on the progress of the project. This also lets you check the cost report against the cost control plan to determine how financially healthy the project is.
Cost reports streamline communication between owners, contractors, and subcontractors. Real-time reports help to identity delays or budget overruns that may occur.