Starting a commercial building project can feel overwhelming, especially with the monumental costs involved. One way to keep costs in check is to invest the time necessary to plan carefully. This includes clearly defining the scope of your project, determining what you need versus what would be nice to have and drafting detailed blueprints. When you have planned well, you are in the best position to get accurate bids, resist the temptation to make unnecessary purchases at the last minute and avoid the chances of unexpected costs popping up later. The following are some steps that you can take to carefully plan your commercial construction project.
Shop Around and Get Competitive Bids
Once you have an established plan in place, shop around and obtain bids from a wide range of licensed and experienced contractors. Don’t accept the first quote that you receive, even if it looks great. The lowest bid isn’t always the best, especially if you find out later that the contractor uses substandard materials or has a less-than-stellar reputation. Receiving numerous quotes enables you to compare prices and services so that you get the best value for your investment.
Value Engineering: Smart Material Choices
Value engineering is another way for you to save money without sacrificing quality. This practice involves analyzing various construction methods and materials to determine whether there is a more cost-effective alternative to meet your needs. For instance, rather than choosing imported tiles that may come at a premium cost, you can find a locally sourced option that is budget friendly and looks just as good. Or maybe there is a different framing technique that can be implemented to save on labor costs that will not compromise the structural integrity of the building.
Phased Construction: Build in Stages
Depending on what your business needs and the amount of cash flow that you have, you may be able to break down your construction project into smaller chunks. This is known as phasing. This practice can help you spread out your construction costs so that you can have more opportunities to generate revenue during the earlier phases before the project is complete. To illustrate, let’s say that you are building a retail establishment. You may focus on constructing the main building first along with part of the parking lot, and then you can finish the rest of the parking lot and other landscaping features later. This way, you can open for business while the later phases of the project are being completed.
Negotiate Payment Terms and Contracts
Never be afraid to discuss payment terms with your contractor and even negotiate for a better deal. For example, you can negotiate making payments when specific milestones are completed versus making a large payment up front. Furthermore, make sure you carefully review the contract and understand all its terms because this can avoid misunderstandings and cost overruns down the line.
When you spend strategically and save money, you are doing your part to build a sustainable future for your business. To begin the commercial construction process in Zachary, LA, collaborate with the team at Stricklin & Porter.
