4 ways to make a construction project cost effective

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Overhead costs in a large scale construction project are an unavoidable phenomenon and their repercussions on the final output are a serious concern to general contractors and construction firms.

For more than a decade; Building Information Modeling (BIM) has been proactive and proved its worth in helping contractors bring down the costs even in projects of multiple complexities.

In spite of bringing BIM on board, a constant scrutiny of planned spending capacity and actual spending is of crucial importance as it ensures that the building is constructed within budgets. There are key signs that show BIM implementation is correct and projects are on a cost effective track. The four key points if followed positively will ensure that works are in sync with BIM plans.

Ensure the cost estimation is correct from the onset

Whenever any construction project breaks ground, cost estimates are crucial to follow a planned budget ahead. Accuracy in these estimates will essentially avoid any budgets fallout as the project progresses to further stages.

Cost estimation softwares such as CostX or ITALSOFT, are compatible with Autodesk Revit. This is what is called, extremely efficient and sophisticated approach that guarantees a flawless estimation. With right software tools and correct quantity takeoffs calculated from them, the contractors will be able to plan correct budgets and win bids.

Autodesk’s Revit allows selecting of building products from the part library, to make as built models and calculates the costs against it. There is an uptrend of fixed-bid contracts and growing market place competition where it makes accurate and correct estimations and justify the needs of a contractor. The more tailored a BIM ready model is to the business needs; the more the opportunity to save time and money on a project.

Identify risks and uncertainties early in the project

Not addressing emerging risks at the correct time, may lead to adverse implications at the later stage of the project and eventually affect the overall outcome. Thus, it is better to weigh risks and uncertainties early enough and save a significant amount of money originating from downtime on the construction sites.

However; at fundamental levels, uncertainties and risks are two different things. Uncertainties pertain to events while risks are fallouts of events from probability and are dictated by statistical probability. Though both are different and have different implications, anticipating them through Virtual Design Construction (VDC) on BIM platform mitigates risks and keeps projects within budgets.

Avoid reworks

Reworks are most definitely costly and are better avoided than dealt with on later stages. Costly not only in financial terms but also in terms of creating friction between different stakeholders and the contractor which ultimately tends to damage a construction firm’s reputation. Preventing reworks is the most effective cost reduction solution.

Have an effective communication mechanism

Large construction projects involve multidisciplinary participation of professionals and manual laborers. Their communication lines should be open and transparent enough to take the right decisions required for efficient cost planning.

Along with inter team communication; long-term relationships between contractors and suppliers prove advantageous when costs are at stake. This is a repetitive business generating element for suppliers who are always up for price negotiations and also adjust to contractors’ flexibility in terms of building product requirements for the construction project. Such a development in relationships continues even in tight industry phases.