Realistic Budgets Drive Project Success…Project Wish List Attained with the PartnershipContributor: Swinerton Blogger | January 05, 2016
This is part two in a two-part series discussing how contractor participation during planning enables owners to receive more items on their project wish list. If you missed the first installment, click here.
Early Changes to Major Systems
A building’s exterior skin composition and HVAC system make up between 20–30% of a construction budget and heavily influence budget evaluations. They also shape a building’s appearance and occupant comfort, so they are best analyzed during preliminary design stages. It is critical for both the design team and ownership to understand how these choices affect the project financially. A credible budget generated by an experienced contractor enables ownership to convey their top priorities to the design team, and helps the architect maintain overall design intent.
Life Cycle Costs
Life cycle costs are a key factor in analyzing major building systems and these decisions should not be made in a vacuum. By knowing the long-term costs, details of up-front costs, and life expectancy of all options, owners can determine which systems are best for their intentions.
If a project must undergo design delays for value engineering, this rework can delay a loan closing date, which can impact leasing activities or build-to-suit move-in timetables.
Price escalation in materials and the skilled workforce labor shortage are issues that influence a project’s budget. As the marketplace continues to grow, these issues have the potential to drive up financing costs. To overcome this distraction, it is important to understand the project budget early.
A preconstruction schedule keeps all parties on track. Knowing the best time to buy certain trades as they progress through design is an essential component to the preconstruction process. An experienced preconstruction team understands these purchasing cycles and works with the design team to get the most efficient and preferred systems selected and under contract for the financial and timing benefit of the project.