If you plan to build a new office, retail space, or factory, you may wonder if construction management services would save you money. The short answer is yes - construction management services can save you a lot of money on your construction project.
In 2021, the private sector construction spending saw a positive trend when new private development reached more than 1.2 trillion USD. Furthermore, despite the COVID-19 pandemic that affected the sector, new private construction value continued to rise in 2020, reaching around 1.1 trillion USD.
Construction projects are often challenging and dynamic, with issues popping up. Everything from a team's inefficiency to calamities occurring behind the walls is conceivable, resulting in extended schedules, higher expenditures, and, in certain circumstances, potential litigation.
Construction management services can be extremely beneficial for any organization or individual planning a construction project.
10 Reasons Construction Management Services Could Be Extremely Beneficial
Several reasons construction management services could benefit organizations or individuals planning a construction project.
1. Project Scope Development
The first stage of any construction project is developing the project scope. This is when the project's timeline, budget, and specifications are created. A construction manager will work with you to develop a comprehensive project scope that considers all the potential risks and challenges. This will help you avoid any cost overruns or delays in the project.
Construction managers also have a deep understanding of the construction process and can provide valuable insights into how to streamline the process and save time and money. The first stage in any construction project is the plan, which includes drawings, blueprints, specifications, and an estimate of the costs. This ensures that both parties know what must be done to complete the current endeavor.
2. Schedule Development and Management
After the project scope is developed, the construction manager will develop a detailed schedule. This schedule will consider all the potential risks and challenges that could impact the project. The goal is to create a schedule that minimizes disruptions and keeps the project on track.
A well-managed construction schedule can save you a significant amount of money by avoiding costly delays. In addition, a construction manager can help you make schedule changes if necessary to avoid even more costly delays.
3. Insurance Management
Another important role of a construction manager is managing the project's insurance. Construction projects are often high-risk endeavors, so it's essential to have adequate insurance in place. A construction manager can help you choose the right insurance policy for your project and ensure all the necessary coverage is in place.
This can save you a significant amount of money by protecting you from any potential liabilities that could arise during the project. A variety of factors determines the kind of coverage required. Construction management firms are experienced in the many insurance policies and can guarantee appropriate coverage at all project phases.
4. Avoid Change Orders
Change orders are one of the main ways that construction companies make money. A change order is a document that authorizes additional work or changes to the scope of work in a construction contract. They are typically used when the client requests a change to the original plans.
Construction managers can help you avoid change orders by carefully managing the project scope and schedule. You can save significant money on your construction project by avoiding changes to the original plans.
5. Billing Documentation Management
A construction management consultant can also help you manage the billing for the project. They will keep track of all of the invoices and payments made during the course of the project. This can save you a lot of time and money by ensuring that all of the bills are paid on time and that there are no errors in the documentation.
The expertise can be extremely helpful in negotiating favorable payment terms with contractors and suppliers. This is an essential service because it can save you significant money throughout the project.
6. Project Quality Control
Another vital role of a construction manager is overseeing the project's quality control. They will ensure that all materials and workmanship meet the required standards. This can save you a lot of money by avoiding costly mistakes and repairs down the road.
A construction manager will also conduct regular inspections throughout the project to ensure everything is on track. This can catch potential problems early on and save you time and money in the long run.
7. Client Communication
Throughout the project, the construction manager will act as a liaison between you and the contractor. They will inform you of the project's progress and any potential issues. This can save you time and frustration by avoiding miscommunication between you and the contractor.
You don't have to worry about client communication. A construction management consultant will take care of it for you.
8. Vendor and Subcontractor Management
A construction management consultant will also manage all vendors and subcontractors working on the project. This includes selecting vendors and subcontractors, negotiating contracts, and managing communication between parties.
In addition, they can help you manage the insurance, billing, and client communication for the project. They will also be responsible for project closeout, which can save you a lot of time and money.
9. Financial Savings
A construction manager can save you significant money by helping you manage the project budget. They will track all costs associated with the project and help you identify areas where cost savings can be achieved. In addition, they can negotiate favorable payment terms with contractors and suppliers.
A construction consultant can also help you avoid costly delays by managing the construction schedule. In addition, they can help you make schedule changes if necessary to avoid even more expensive delays.
10. Project Closeout
The construction management consultant will also be responsible for project closeout. This includes conducting a final site walk-through, ensuring that all punch list items are completed, and preparing all necessary documentation. This can save you time and money by avoiding potential problems arising after completing the project.
A closing package is a summary of paperwork and documentation related to the project, including client remarks, proof of any modifications in the scope of work that have been agreed upon, documentation of all inspections and passing of codes, and information on all work completed during the project.
A construction manager can provide a wide range of services that save you time and money. They have a deep understanding of the construction process and can offer valuable insights into how to streamline it. In addition, they can help you manage the insurance, billing, documentation, vendor and subcontractor communication, and project closeout for the project. This knowledge and experience can save you significant time and money.
Construction managers are an important part of the construction process. They can offer valuable insights and save you time and money. If you are planning a construction project, hire a reputable commercial general contractor to ensure your project is completed on time and within budget.