Three Warning Signs Your Budget Might Go Bust
When it comes to commercial constructions, there are pitfalls to budgets everywhere you turn. With the typical scope and scale of these projects, even simple problems can wreak havoc on a financial plan. At times, the realization that your budget is in danger may come too late, after the major damage has been down. Here are three warning signs your budget might go bust.
Delays in construction progress are inevitable. From impossible weather patterns to delays in material delivery, something always gets in the way of the perfect timeline. Constant delays, however, are a major red flag when it comes to your commercial construction budget. If you notice the project getting out of control – resequencing of work order, disruptive scheduling of trades that require the same space, or unexplained slow work – then your budget is in danger. These delays prove costly as the timeline gets backed up and labor is being paid for little work. Nip any unusual delays in the bud as quickly as possible or your budget might go bust!
Issues with Subcontractors
One major role of your contractor is to manage the subcontractors efficiently and cost effectively. Therefore, it is not unusual to see some less than positive interactions between the two parties on occasion. However, if it becomes a consistent problem, the commercial construction project quickly becomes endangered. A work stoppage caused by a subcontractor dispute can create construction delays and holdups for other subcontractors that balloon costs and wreck the overall budget.
Unexpected Project Management Changes
There are issues that arise requiring project managers to change projects. However, an unexpected or unexplained change in project managers can be a warning sign of an issue with the project in general. Whether the current manager has lost control or is being changed to a more productive project, either spells bad news for your budget.
Commercial construction is daunting, if only because of the typical size of the projects and budgets. A ballooning commercial budget can get out of control very quickly. Keep an eye out for these three warning signs to ensure your budget stays manageable.