It’s important to outline your budget for a construction project from the very beginning and stick to it as work progresses. But how can you be sure to stay within your parameters? If you’re preparing for an upcoming construction project, here are our tips on how to set a construction budget and stick to it.
The better your construction company, the easier your life will be during the construction process. Your construction partner will be just that: your partner. Aside from you, they’ll be the biggest decision maker during the project, so it’s crucial to find someone with integrity, reliability, and experience.
The head of your project, often a construction manager, will be responsible for making sure your project stays on schedule and within budget, so you’ll want to do your research and vet potential candidates carefully. Make sure that you have open communication with your construction team and that your construction partner has a clear understanding of your expectations for the project.
The next step on your construction project journey is outlining your project. You need to clearly identify your wants and needs, both for the process and product of your construction project. If you can't clearly outline your expectations, then no one will be able to meet them. If you're unsure of where to begin, your construction partner will be able to help you.
It is during this planning phase that you'll need to outline your budget. The more specific it is, the easier it will be to adhere to it. A grey or fuzzy budget will result in a grey or fuzzy outcome–neither of which is satisfactory when it comes to a major construction project. Be sure to include contingency in your budget so that if something does go wrong you are prepared.
It’s important to set a practical timeline for your construction project; otherwise, you will be disappointed early in the process. Your building partner will be able to help you plan out and articulate how you’d like the project to work. Be sure to indicate any hard deadlines so that your construction company can accommodate them. It will be the responsibility of your construction partner to share and oversee the timeline. Your construction team should be fully aware of the schedule and deadlines. Knowing the timeline of your project will allow you to allocate an appropriate portion of your budget to potential delays or setbacks.
Work with your construction partner to establish communication guidelines for adjustments to the schedule, project, and yes, budget. Keeping an open line of communication allows your construction company to be flexible and make changes when necessary to keep the project on track. Build time into your schedule to approve changes, stages, and updates on the project. If both sides do their jobs, then clear communication should help you effectively solve any major issues that may arise. Open communication is crucial for staying on budget.
The best time to plan for an emergency is before it happens. Make sure that you and your construction partner know the plan of action in case a budget emergency arises. The sooner a problem is addressed, the less it will impact your overall budget. Emergencies can easily be resolved if you have a plan of action and contingency in place before they arise.
If you’re preparing for an upcoming construction project, contact Pro-Line Building Company to learn more about our process and find out how we can help.