One of the most challenging parts of a Construction project is to keep tab on expenses and costs. This is more because the profit margins are getting smaller these days due to heavy competition. Being a dynamic industry, large scale construction projects have to be planned well ahead of schedules. The project manager in charge of construction has to deal with cost overruns most of the time. Some of the most common issues seen are,

  • Shortage of labour
  • Materials non availability
  • Materials non availability
  • Excess labour than estimated
  • Change of environment(like Pandemic)
  • Duration of project change
  • Qualified manpower issue
  • Unavailability of cost data

Solutions to the rising costs involve various steps to be taken in advance. One has to start the project with a development budget that has a plan which includes developer’s returns, Insurance, Survey, and all other consultation fees. Other smart investments may include,

  • Investment in Training
  • Effective time management
  • Consolidated Supply chain
  • Keeping track of cost
  • Change Control System in place
  • Outsourcing if necessary
  • Use of the earned value
  • Constant review of budget
  • Robust procurement system
  • Review of current trends
  • Financial information availability
  • Regular financial reporting
  • Auditors must predict potential risks

One can also consider optimal use of the fleet of vehicles like trucks etc that are used in the company. It would be better in the long run to replace old vehicles with new fuel efficient vehicles. It is better to consider green technology. Similarly the planning and execution of a well organized work is only possible when one uses good friendly and effective software that can automate certain works. Materials used in the processes of construction must be recycled as much as possible. There is also the possibility of Hiring multi tasking manpower and doing job rotation within projects to reduce labour costs and eliminate worker down time.
Some other points that can help reduce costs are

  • Use of energy efficient electric material
  • Use of re -inforced steel manufactured from iron ore
  • Use natural stones in construction
  • Use alternative roofing instead of concrete roof slabs
  • Take good care of tools/equipment

At Avon Constructions we are quite aware of the pitfalls of the industry and always handle the entire project in a professional manner from beginning to handover.