Design and Budget Challenges in Construction: 10 Problems to Watch Out For
New construction projects have a lot of moving parts. And this makes them complex when having to coordinate different vendors, maintain communication to keep projects moving, and orchestrate the construction phases to prevent time and cost delays.
And each phase of the project brings its own challenges. As an owner, you want to make educated decisions. So it is important to understand challenges that can affect your budget and timeline.
Let’s start with design and budget challenges in construction.
Design-related challenges your construction project can encounter:
Construction sequencing
This is the order of when tasks take place during the various phases of construction. The sequencing impacts your overall schedule and budget. You’ll want plans that allow for the correct stages of construction to happen in the right order. But also accounts for possible delays like inclement weather or materials delays.
Site conditions
From soil type and topography to existing infrastructure, it can all impact the overall design and construction methods of your project.
It’ll be important to maintain contact with your project designer to mitigate the impact on your project and vision.
Safety considerations
Every construction site has potential hazards. But building in Florida brings on the unique hazards of tropical storms and hurricanes. Your design team will need to include elements in the design to withstand these natural disasters.
To best handle Florida’s unique set of hurricane codes, select a design team local to the area. They’re in the best position to know the local codes and make sure they’re followed.
Material selection
Not all materials selected by your project design team will be the right fit for your project. It’s important to understand durability, cost, and availability when selecting materials for your project.
We suggest clients bring in a general contractor during the pre-construction phase to help confirm the availability and costs of materials selected for the project.
Coordination with project team members & consultants
There are a lot of different consultants and team members who work on a construction project, each bringing their unique challenges (i.e. architect, engineer, contractors, subcontractors, & speciality consultants). You’ll need to work closely with these third parties to ensure they’re compatible with your scope of work, timeline, and budget.
Budget-related challenges your construction project can encounter:
Cost overruns
When there are unexpected site conditions, changes in the scope of work, or a shortage of supplies or skilled labor – these can all push your project outside of budget. It takes an experienced hand to balance the budget against the changes in the project and maintain your overall vision.
At The Common Area, we’ll ensure you start with the right budget that can help anticipate these issues. And then work to help your team "value engineer" the design & scope to get the budget back to the acceptable level.
Design changes
In most construction, there are invariably changes to the design (whether due to existing site conditions, changes required by conflicts in the field, or owner required changes). Any change will increase the costs of the project. You need a clear understanding of the changes and their impact before approving, denying, or limiting design changes.
Permits & inspection fees
These can vary depending on the location and complexity of the project. It's good to understand these various costs so they’re built into your budget and don't become a surprise to you later.
Material costs
A large portion of your construction budget will be the cost of materials. And prices can fluctuate due to market conditions, transportation costs, and availability. It’s becoming increasingly difficult to estimate material costs with the current market of high demand and low availability.
Keep in mind most contractors are able to lock in costs for materials for a window of time. Managing the purchase of those materials in a timely manner is important. A clear submittal schedule is the best way to ensure you don't encounter this issue.
Labor costs
This is another area that can be a large part of your budget. The cost of labor will depend on the availability of skilled labor. And on overtime and delays, which increase costs. There are gaps of need in the skilled labor construction industry, so this is another area where balancing a budget alongside the project needs an experienced person.
Construction projects have a lot of moving parts – and the challenges you’ll face can be overwhelming.
You want to know your project is going forward as planned without worrying if each delay or change will affect your timeline and budget. But handling it by yourself is difficult. Especially if you lack industry knowledge.
You need an advocate to protect your interests from start to finish.
The Common Area can be your advocate.