Money is the heartbeat of construction. You can bleed out due to costly errors like tardy payments, disputes, and liens that are notorious for derailing construction projects. Or, you can keep the project flowing smoothly, developing and completing your project with great success. Remember: There’s no cheap and easy solution to a successful commercial construction project. Reducing construction costs isn’t done by quickly cutting corners – you need to think in broader terms.
By utilizing a construction administration software like DrawAlert, reducing construction costs and costs tied to administration is easier than ever before. Here are three ways you can start diminishing costs today:
1. Develop a Plan
Your construction plan should include all project costs. From development to completion, there are dozens of moving parts involved in a construction project. During the workflow, duplicate payments are occurring, information can get lost, and redundant processes happen. With a developed plan including your budget, you can make decisions based on the forecast of the project, tell the team to design within the budget at every single stage, and communicate early and often with your contractor – transparency and planning early is the key to reducing construction costs.
2. Choose an A Team
You might think that choosing the cheapest team of subcontractors is the best way to reduce your construction costs. However, though you may be saving a few bucks off the top of your project, your C Team of subcontractors are more of a budget liability than a money-saving hack. If your quality goes down the drain, or you miss a deadline because of your less-than-adequate subs, the money you’ll have to pay fixing the issue isn’t worth the upfront cash you saved.
3. Communicate Effectively
Failing to maintain an open line of communication is a mistake that can carry a very high price tag. While communicating with the team might not reduce costs up front on your construction project, it helps to prevent common errors from occurring from the beginning. With a construction administration tool like DrawAlert, every party on the project has access to the status of the project, including budget, meeting notes, when draws have been made, and more. Transparency and effective communication are imperative to keeping construction costs down.
Reduce Construction Costs with DrawAlert
Planning, controlling, and executing your project with DrawAlert can help to reduce overall costs by 1-2%. From developing and maintaining your project with our robust project dashboard to choosing an A Team of subcontractors thanks to our Peer Rated Directory, DrawAlert’s key features are built with reducing construction costs in mind.
DrawAlert is a cloud-based Construction Administration Software that focuses on document management, financial controls, and transparency for all. Are you ready to reduce costs on your next commercial construction project? Contact us today.