Projects big or small take a lot of planning and time from start to finish, some even going well over a year. During this time, communication between the construction team and the investors can slip as other projects get busy and investors get wrapped up in other things. The last thing you want is to realize that a few months have gone by and there’s been no communication.
To avoid instances of poor communication, sit down with the entire team at the beginning of the project and discuss expectations. Decide how often and what modes of communication you will use throughout the project, and what you will each bring to the table at those times.
A contingency line item is an item in a construction budget that is intended to cover unforeseen project costs that come about. Unexpected expenses are almost a guarantee when it comes to commercial construction, such as fees, delays, and damaged items.
By including a contingency line item in your budget, you can ensure that when these expenses come up, you will have the funds available to address them.
At the beginning of projects, you should get proposals from multiple construction groups to find the one that best suits your needs. Not every proposal will be the same. They will vary in ways such as materials and technology used, fixed costs versus estimates, and expectations of responsibilities and time frames.
Not understanding the differences in the proposals can lead to a poor fit where expectations of outcomes and total costs are not met by the end. Be sure to read thoroughly, and if there is something you aren’t clear on, ask the construction group for clarification. A little more research on the front end will pay off in the long run.
Safety should be a top priority when reviewing potential construction groups. When safety is overlooked, workers and visitors to the construction site can be at risk, and expensive lawsuits become a big concern. Construction groups that aren’t open and honest about their safety policies are probably not someone you want to be working with anyway, as it begs the question of what else are they cutting corners on.
Be sure to ask your construction group what its safety policies and records are, what kind of insurance it has, and if it has any references to prove safety claims. In the event that something comes up, you’ll be thanking yourself for checking before.
If you’re just getting started on a new commercial construction project, be sure to keep these mistakes and how to avoid them in mind. While reviewing your potential construction groups, check out our blog on why you shouldn't hire a construction company until they start using construction management software.
Happy building and contact Compass Group to address your needs at any stage of the project.