No construction company (or any company for that matter) wants to go over budget on a project. Obviously when a project is on budget things are going well. But being under budget means things are even better! Follow these 4 steps to keep your project under budget and your pockets happy.
- Have a plan and set a budget. The cost of a project can get out of control if you don’t have a plan from the start. Communicate with all major stakeholders then come up with a clear plan so you can budget the project accordingly. This will save you a lot in the long run.
- Choose the right team. This is extremely important as making the wrong choice could cost you big bucks when you have to backtrack and fix major mistakes. Spending a little extra time and money in this department will increase your profit in the long run.
- Measure twice and cut once. This is obvious as it cuts down on waste and therefore money. This doesn’t only apply to material waste such as cutting a piece of wood too short, this also applies to poor planning. Plan every detail possible right from the beginning and you will avoid having to cut again.
- Allow yourself a contingency. If you give yourself a contingency this takes the stress off of minor hiccups along the way. When you have prepared for that in your budget you can still come out of a project with some money left over.
As the saying goes, “fail to plan and plan to fail”. This is important to remember when budgeting for a project. Have a well thought-out budget from the beginning and you are sure to win!
