How to Save a Lot of Money on Building Projects

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Understanding what to anticipate, including where costs tend to lie, gives you an advantage when it comes to managing the Patco Construction & General Contracting process effectively.

Phase one

Make it a point to have the project executive, project manager, and project supervisor in attendance for the interview. The superintendent is the on-site contact; the executive represents the business; and the manager uses the owner’s funds. Keep a close eye on how these folks connect with one another. A project’s success may depend on how well the participants get along with one another.

The hidden costs

Although the owner and CM’s building contract is a legally binding agreement, its stipulations are not set in stone. The owner should haggle over the intricacies of the contract’s criteria as well as the project’s unique requirements.

The owner, who is frequently represented by the facility executive, will be more aware of potential hidden charges the more familiar they are with the contract’s terms. Owners who lack knowledge may unintentionally agree to pay more money for a longer period of time than is necessary you can get more info here

By first being aware of the unit costs and labor expenses of each item you agree to buy and by negotiating the following basic construction contract line items, you can show that you understand how the construction process works.

• normative situations Only those non-construction expenses that are essential to completing the project and are specifically relevant to it should be included in general conditions. Before construction begins, each general condition should have a line-item amount that has been agreed upon and guaranteed. Funds for a site office, project administration staff on-site, and necessary office supplies are examples of typical general condition components. Accepting a sum that is a percentage of the cost is not acceptable.
• Pay by the hour. Accept to be paid only the wages necessary to complete your project. The owner is accountable for paying the real hourly wages, taxes, and benefits (not a multiple of these). Vacation days and educational conferences are not. Avoid being requested to pay a general superintendent’s salary or that of any other part-time supervisory staff.
• Fees for construction Negotiate a percentage based only on the cost of the work in order to establish a reasonable construction price. Pay close attention to the contract’s text.
• Charge for contingencies. The majority of CMs demand that a contingency fee be included in the maximum guaranteed pricing. Demanding that it be jointly managed by the owner and the CM is the only ethical way to handle the mandatory contingency fee. Insisting that they must “manage their risk” with the contingency fee because neither the design nor construction processes are exact sciences, CMs will say that they must. The owner will be able to best defend the costs by maintaining some degree of control over the distribution of cash.

The owner must “purchase the schedule” with the cost of construction when negotiating the contract to prevent it from sliding. The choice to extend the contact to Patco Construction Services.

Set a deadline for the project’s completion and demand that a fine be applied if it is delayed. Yet, if the job is completed ahead of schedule, do not consent to a bonus. If remarkable obstacles were surmounted, the CM might be entitled to a bonus for an early delivery, but they are not necessarily entitled to a bonus for doing the task you hired them to do.

Order changes and substitutions

The owner should demand a “no work stoppage” clause when negotiating the construction contract’s change order process. If work stops in expectation of a general understanding of change order amounts and schedule implications, too much time can be lost.

When an architect receives a modification order, they should think about how much money and time the CM wants to spend on the project. Each one is up for debate. Don’t ask yourself why the building isn’t finished only to learn that the architect has given all the change orders time to amass.

Tips for a productive refurbishment

Consider the following strategies to properly manage a renovation process while the building is still in use to reduce cost and disruption:

You don’t always get what you see. In most circumstances, the potential difference between the budgeted and actual expenses of the renovation increases with the age of the building you are occupying and upgrading. Work with an architect and a construction manager (CM) with sufficient renovation expertise to predict unanticipated circumstances that may arise (electrical, mechanical, environmental, and code compliance) and to estimate the cost of the work before the construction contract is signed.
Establishing a “swing space” Provide a “swing space” for each department that is being relocated to temporarily utilize while its permanent location is being altered if your project necessitates renovating existing premises while you are occupying them.
• Constructing a “smart” annex If your remodeling calls for adding on to the space you’re in, construct as much of the addition as you can before cutting through to link with the existing rooms to reduce traffic, dust, and noise.
• Making your presence known. Your participation in the process is crucial because you are the facility manager and are familiar with the facility and its routine activities. Attend weekly construction meetings and address problems as soon as they arise to avoid them getting worse and costing more. You will frequently comprehend the problems and be able to provide a practical solution more quickly than the construction crew because of your extensive familiarity with the structure and its systems.

Establishing channels of connection

It’s crucial to have clear communication with everyone engaged in the process, especially the clients you serve and the employees who need to be accommodated. One severe scenario required the assistance of the local police, ambulance services, and other local hospitals to reroute and accept patients. This case involved the renovation of a hospital emergency department.

Notifying personnel of an activity or a move, including the start date, duration, and details; discussing the arrangement for temporary facilities; maintaining safety and security; and providing additional signage to reroute visitors are common scenarios. The process will be more effective and less expensive the more precise the construction timeline and the more open the channels of communication are.

Building managers, maintenance, and engineering employees, as well as each subcontractor, should attend weekly progress coordination meetings to review progress. The proper regulatory officials should also receive thorough meeting minutes. These minutes will serve as the project’s main form of documentation.

Owners and facility managers may not all have the time, enthusiasm, or knowledge to commit to project management.

The owner can still defend their rights by employing a representative to manage and supervise the construction process. This person establishes the development process, negotiates project contracts, schedules and oversees every stage of the construction process, and manages participant communication in their capacity as the owner’s agent.


The expense of this service can be paid for by significant reductions in construction costs. Many clients engage these professionals to “repair” projects that are already in crisis, but an advocate is most helpful if engaged right away.