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5 Tips to Uncover Hidden Savings in Your Construction Budget

July 16th, 2015 by Dave Seermon


Are you spending more money on your construction project than you need to be?

When a project is in the final estimating stages, there are a multitude of last minute adjustments to the construction documents to attempt to capture a scope of work that satisfies the Owner’s wishes and budget.

It is extremely important for the construction documents to represent how the project will be built, because all estimates are based on these documents. For designers and estimators, it is nearly impossible to hit a bull’s-eye on an ever-moving scope target as a project transitions into the construction stage. However, there can be elements within the construction documents that are unintentionally driving up costs. 

As you finalize your project’s budget, here are 5 tips to help cut down the waste and find hidden savings in your construction documents:

 

1. Check Dimensions on Detail Drawings

A ½” can greatly impact an estimate. A detail drawing in the construction documents may represent one portion of work that is repeated often throughout a building. When dimensioning the elements of these detail drawings, it’s important to keep in mind standard sizes of materials where possible. 

For example, if window trim is dimensioned as 6” wide, there are hidden costs to achieve this dimension. A standard 1x6 trim board provides a 5-1/2” actual width. This means a wider board needs to be ripped (cut) down to 6” in order to meet the dimension in the detail.

If the dimension in the detail can be 5-1/2” instead of 6”, costs will be reduced. To achieve the 6” dimension, there is a greater cost for material, there is waste generated from cutting, and there is a labor cost associated with ripping boards to the necessary width. Custom run board sizes can be manufactured – at a premium cost and with a longer lead time. 

Estimators take dimensions into account when pricing a project. To save money, we recommend checking the dimensions in the detail drawings to ensure materials are being maximized. Common areas for dimensional issues can be found in details associated with siding, roofing, millwork, running trim (finish carpentry) and doors/frames. 

 

2. Aim for One-Stop Shopping

The Construction industry has a vast amount of specialty trades that perform various tasks.  When looking at construction schedules, a project can typically be built quicker when fewer trades are involved. Less time means less labor, which is the major variable in construction estimates. Therefore, it’s more cost effective to maximize the amount of work one trade can perform.

Several trades may be required to produce one portion of a drawing detail in the construction documents. If that detail can be adjusted slightly to reduce the number of trades involved, then savings will likely be generated through a condensed installation time.

It’s important to consider which trades will be involved when drawing details are created in the construction documents. Some of the more interchangeable trades, such as concrete, masonry, steel and carpentry are associated with assembling the building structure and envelope.

 

3. Check for Double Buys

A “double buy” occurs when a portion of work is included in the contract of multiple subcontractors or vendors. Essentially, you’ve paid twice for one item of work. This happens for various reasons, but most often it’s a result of Owner’s contractors duplicating work the General Contractor has included, because it’s shown in the construction documents.

Often times this issue can be rectified with change orders prior to the work being performed, so no costs are incurred. However, sometimes materials have already been purchased or work has already been performed before the dreaded “double buy” becomes evident.

We recommend holding a coordination meeting between the Designer and Owner during the formulation of the final construction documents to confirm what, if any, portions of the work the Owner intends to complete with separate contractors. At this time, the Owner should get proposals from its contractors to help the Designer understand the scope to incorporate into the construction documents. Our estimators can then accurately and efficiently price the project to eliminate any “double buys.”

Common areas for double buys include the Tel/Data, Audio Visual, Security, HVAC Control Systems and Door Hardware portions of the construction documents.

 

4. Eliminate Proprietary Specification

Within a project’s Specifications, materials and products are listed based on certain manufacturers. Proprietary specification occurs when only one manufacturer is specified for a particular material/product in a trade item of work. This practice creates a high cost for the material/product due to lack of competition. 

It’s understandable for the Designer to have a “basis of design” product in mind while formulating the construction documents. However, it’s important to include a range of product options to allow for competitive pricing in the market.

We recommend specifying a minimum of three (3) equal materials/products that will result in a complete and functional design that meets the Owner’s expectations.

 

5. Understand the Consultant’s Design and Motivation

Consultants are often utilized to help create the scope of work for technical portions of a project, such as door hardware, light fixtures, sound attenuation and audio/visual systems. These technical designers may push high performance systems, which can translate into a “want” versus “need” scenario.

Often the Consultant hired to design the system is also a supplier, installer or manufacturer’s representative, who offers inexpensive design services to lock in a sale. Before finalizing the construction documents, we suggest the Architect and Owner review the Consultant’s recommended scope of work to confirm they understand what is being provided and how the work will be priced. An itemized breakdown with quantities is especially helpful to understand the features of a system.

During this review, it may become evident that certain elements are not required to be installed during construction and can be bought after project completion, or that a proprietary specification was created by the consultant.

 

Summary

As a Superintendent, I’ve had the displeasure of witnessing some misused dollars. I’ve loaded storage rooms and filled dumpsters with unused and unwanted materials.

When an Owner sees undesired items or excessive waste during construction, I’m inevitably asked, “Why did I buy this?”

Regrettably, my answer is usually the same: “It is shown in the construction documents.”

By following the five tips above, you can avoid this costly scenario.

 

Contact us to learn how we can help you with your next building project.

Posted in the category Planning Process.