Wolgast Blog

Sharing Your Budget Streamlines the Pre-Construction Phase

Posted by Cory Sursely on Wed, Oct 24, 2018 @ 02:54 PM

BarBWe use this blog to help educate potential construction clients on how to build their buildings more efficiently and economically.  I am posing a taboo view in this edition, but all in an effort to save the building owner weeks and maybe months of time on their pre-construction phase.  By giving a contractor a ballpark budget before design and/or estimating starts, an owner can take a shortcut in the preliminary phase and get to construction sooner.

Realistically, we understand that sharing a budget feels risky because it shows the owners “full hand” so to speak in poker terms and he or she could feel like it reduces the opportunity to negotiate.  However, for Design/Build Construction, by knowing our client’s budget we can design a building that can be accomplished comfortably for the owner, rather than one that causes sticker shock and then adds time for redrawing.  Having an owner’s actual budget at the start, helps us to provide valuable consultation to the owner regarding allowances for materials and finishes.  Also, we will know upfront if we need to scale down the building and by how much if the numbers need to be tweaked when estimating is complete.  Knowing a budget for General Construction, lets us discern if we are a fit with our full service offering (including insured contractors, precise estimates, guaranteed completion dates, warranty, full-time supervision, self-performed trades, etc. to protect the owner’s interest), or if the owner is willing to accept a more risky and lesser value option for their construction needs.

We’ve been estimating and constructing buildings for over 70 years and have a good idea of what a competitive price for a scope of work may be, considering variables like the time of year, how busy our subcontractors are, and material pricing fluctuations to pinpoint a precise final price.  Therefore, we can save everyone a lot of time if the owner’s budget is significantly under what we speculate the cost would be and the owner isn’t willing to change their scope of work.  In turn, we can help them make a business decision before they spend any money on design or go through the estimating process.

Contact Rick Suitor or Dr. Michael Shepard at 800-WOLGAST to discuss your project and budget and to see if our services are well suited to design and/or build your business investment.  In return, we will provide a competitive and accurate estimate and offer professional construction services!  This is just one shortcut to construction and happiness that we can offer.

Topics: Professional General Contractor, Good for Business, Risk Management