This article covers certain tips related to the Preconstruction Stage. Let’s take a look.
Do set up an internal Job Cost System.
Setting up an internal Job Cost System can ensure all costs are tracked accurately and efficiently throughout the process. As the project moves into the construction stage, utilization of the Job Cost System on a monthly basis for the purpose of construction draws enables the payment process to flow in an efficient manner.
Do discourage allowances within the hard costs.
Consider that allowances can be like throwing a dart at a dartboard blindfolded. It’s likely you’re going to hit the board; however, unlikely to be exactly where you planned. Generally, allowances provide for a placeholder of costs for undefined scope, yet they’re typically on the low side so the overall contract is kept on “budget”. These are often forgotten with the excuse that “we have an allowance for that”, and leading to opportunities for cost increases once a conceptual or schematic idea/plan is put through the full design stage.
Do put together a “bidder’s package” for general contractors.
This will ensure consistency and allows you to review comparable bids to determine the best option based on cost, quality, and efficiency.
Do establish a complete Construction Draw Review Package.
This can discourage unsubstantiated contract increases via change orders during the construction stage. It will also ensure that everything is accounted for within the package, alleviating conflicts down the road.
Don’t forget to provide timely updates.
Failing to provide timely information/updates to stakeholders and project delivery teams can result in rework, delays, increased costs, etc. This simple task will avoid these consequences and foster successful habits that contribute to the project’s overall success.
Don’t deviate from the scope and plan of the project.
Cost, quality, and schedule are all interrelated – changes in one will impact the others.
Don’t be afraid to deliver bad news.
No one enjoys delivering bad news, and some tend to avoid it in fear of the recipient’s response. However, the earlier bad news is communicated and dealt with, the greater the likelihood of mitigating the issue.
Don’t assume all stakeholders know their roles and responsibilities.
If you are hired as a consultant, it is your priority to ensure that the stakeholders know their responsibilities throughout the process.
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