Are you planning to construct a home? Do you face the problem of high costs? Have you ever felt it might go beyond the budget? If yes, then here are some tips you can use to reduce the costs.
The Glossary of Architectural & Construction Terminology defines Construction Cost as the cost of all the construction portions of a project, generally based upon the sum of the construction contracts and other direct construction cost; does not include the compensation paid to the architect and consultants, the cost of the land, right-of-way, or other costs which are defined in the contract documents as being the responsibility of the owner.
In simple terms it means the Total Cost involved for the construction of a project work.
The whole process of constructing can be divided into 3 Phases: The Planning Phase, The Execution (or The Construction) Phase and The Post-Execution Phase and below are some tips in reducing the costs in each of these phases.
Plan of Action – The thumb rule for reducing construction cost is a proper plan of action. All the raw materials and other required should be sourced well in advance and arrangements should be made to bring them to the worksite as per the plan of action. Always remember that last minute sourcing will only add up on to the costs.
Process Flow Chart – Chart out each and every point and stages in the process of the project, be it purchasing the plot, the paper works, the architectural planning, the foundation work, the structural, electrical, and plumbing works, the interiors and exteriors like flooring, fixtures, furnitures, ceiling, painting, lawn works. etc. Doing so will help in cutting down cost in each process which eventually will help in reducing the overall cost. This charting can also help you avoid expensive mistakes.
Size and Shape – The size and shape of the house do matter in the costs estimations. The floor area, square feet of the house, the area of the plot is an important consideration in estimating the total construction cost. So you can always approach an architect who is more into the economical side.
Unfavourable conditions – Any damages or replacements should be foreseen and taken into consideration well in advance. The climatic conditions and factors also play a major role in this.
Cost Estimates – You must well calculate in advance the construction costs estimates. There are various methods and calculations available to calculate these. Not only the building costs, the material costs should also be looked into. There are some raw materials like steel, wood which will be cost effective if purchased in huge quantities. So buying in bulk after the quantity estimation is a good option here. And also any fluctuations in prices can be avoided when bought in bulk or when you have a contract with a particular supplier.
Choosing the right personnel – First and foremost an efficient and reputed contractor must be hired. Remember to always have at least three competitive bidders and opt for the one who meets your criteria. There are also licensed contractors available depending upon the states.
Minute Factors – Even the smallest of factor should be taken into consideration like the public holidays. If the plans are well made then the additional costs that might incur in the editions and alterations can be saved up. For some items it’s not an issue even if the construction costs are high because their maintenance costs reduces in future. For example, it is always best to use high quality paint for the exteriors of the house even if it’s expensive because for weather like ours only quality paints will last for long.
Time factor – Utilizing the time and meeting the deadlines is sure a task which will reap in unseen benefits. Make sure there should be not a single day without work at site. Always remember that even the slightest delay is an expense.
Standardization – Create some standards in all the work you do and the works allocated so that quality can be achieved with reduced costs.
Work allocation – Each and every worker should know what has to be done, when it has to be done and by when it should be done. The principle of Unity of Command and Unity of Direction should be strictly followed here.
Supervision – Time to time supervision will keep the workers motivated and maintain the schedules. Also giving them the desired non-financial incentives may help you get better results. The level of your dedication, commitment and hard work should get into them and you must make sure it lasts till the whole work gets completed.
Overtime – Make the employees work overtime only if necessary. Overtime charges are more than normal charges and if used often the energy level of the workers reduces, thus giving you less outcome.
Post- Execution Phase:
Maintenance Cost – Right when you think of closing your wallet the maintenance costs pops up. The maintenance of the machines and equipment’s or maybe even a fish tank or hiring a maid incurs costs. So this also must be thought in advance.
Warranty and Guarantee – Make sure you purchase quality product which gives you warranty and guarantee. If you think you can save up purchasing cheap products, they are surely going to dig a hole in your pocket in the future. So always go for quality products.
Apart from all these put your heart and soul into the project and make sure everything goes as per the plan. Because in these days if you do not take the right path then nobody will follow suit the right path.
Happy Home Building!