Construction cost management is critical for your business profitability and key to a positive result for current and future clients. In a climate where many building companies have recently collapsed and the cost of building in Tasmania is challenging, our team at HED Consulting is committed to using the systems and processes that give you certainty in managing costs from concept through construction.
Some of these may seem simple, while others take advantage of new technology and communications. Being a successful builder isn’t about being cheaper than the other guys but being smarter and more profitable. Take a look at what you can implement now to achieve more effective consturction cost management and where you can leverage our support to get there.
Supply Chain Management in Construction
Every builder has had that frustration of getting their estimations way off or ordering too late in the construction, causing delays and increasing costs. It’s understandable when you consider that historically these estimations rely upon the ability to read multiple layers of 2D drawings covering the inputs of designers, architects, engineers and consultants. That estimation also needs to factor in risks, coordination and construction variables. Thankfully, technology is refining this process for better outcomes for the builder and client by using Building Information Modelling (BIM).
BIM creates 3D models in a virtual collaborative space, allowing all of a build’s details to be housed together for review and comparison throughout a project (read more about BIM here).
BIM is the way of the future for housing every element of the build, including accurate estimations and budgeting. However, there’s a perception that it’s only for multi-level complex construction.
In reality, it’s beneficial to every build. For example, when using BIM, materials can be filtered to determine the exact quantity and measurement of each material, right down to the amount of nails used.
Where a client wants to determine the costs of using a different floor type or a builder wants to stress test the budget with different types of materials, offering multiple options with an accurate result becomes a minimal-effort exercise with BIM. Having the ability to cost, visualise, and manage a project in this way is becoming the industry standard – which is why at HED Consulting, we use it across the board for our clients.
It’s clear that the advantages of using this technology are transparency and planning, which can support our industry in the future with better construction cost management. The challenges, however, are the learning, systems, and investments needed to integrate each build while not getting overwhelmed by information. That’s where your pre-construction team can help by providing the technology to connect all stakeholders.
By looking at the key ways to manage building costs, our pre-construction experts have added their insights on incorporating these strategies into your business processes.
Build out your construction project process
Profitability comes from efficiencies. Engineer Manager at HED Consulting, Dr Mani, says that ‘whether you’re in big or small construction, the process is where it matters. Defining your process and knowing the variables and their impacts at each project stage helps you manage costs, risks, and challenges.’
When it’s repeatable, you get efficiencies that will save you time and money. Look at past projects to find the steps you have, where improvements could be made and document it as a repeatable roadmap.
Efficient construction budget management
Bringing your estimations, costs and construction methodologies together is a highly efficient way to manage construction costs. Suppose you have the building plans in one file, engineering reports in another, and budgeting spreadsheets that try to cross reference both. In that case, HED Business Manager Lydia Bowie says, ‘Getting a system that integrates all of the important information into one is where technology trumps any existing method. I encounter builders running into the same problem because they are using dated systems. BIM has the ability to make life and business easier with time and cost savings. We’ve trialled different platforms but haven’t looked back since utilising BIM for our own process in building design and engineering to benefit all of our clients’ projects’.
Use visual tools that can detect construction risks, conflicts and issues
Imagine if you could ‘walk through’ your project before you even begin construction. With the standard 2D and basic 3D tools, potential inconsistencies are too easily missed. However, with the advanced modelling of BIM that integrates all aspects of the build, the walk-through is as accurate as ever and we can identify any conflicts before they become a costly error. HED Consulting Building Designer Dave Abel says, ‘This technology brings designing into the real world where a concept can connect all its moving parts before construction begins. That improves how every consultant works on the project for efficiency, accuracy and better cost management.’
Work smarter and with more safety throughout construction
The more prep work that technology does for you, the more you can identify ways to work smarter. When we’re designing a project and utilising BIM, we can see where some elements of a project may be able to be prefabricated, reducing construction time on site, improving efficiency,
Additionally, in some cases, the implementation of BIM means a builder or developer can initiate hazardous or repetitive work to be constructed off site. The high level of output ensures that tight QMS management systems can be met.
Manage the construction project effectively
Clients want to know that you’ve got their project under control and on track for budget and delivery. Project management is such a big part of a build that looking for tools that help you do that will always save you time and money. Dr Mani says, ‘I’ve managed projects as big as airports and as small as a playground, but the principles are the same. Effective project management can make or break the result, and using an online platform that brings all parties together gives a builder the confidence to deliver on their contract.’’
Costs of building in Tasmania
Construction cost management is a crucial skill for ongoing success and profitability. It also gives your business a positive reputation in the Hobart and Tasmania industry, as clients want to work with builders who are financially stable, systemised, efficient, and accurate.
Building costs begin in the planning and design phase, so you’ll want to work with Tasmanian pre-construction experts looking at not just the first phase but through to project completion. At HED Consulting, we use BIM extensively, and it delivers better outcomes for our clients across the board. We ensure a pre-construction process that helps your profitability and confidence to secure new projects with less risk and more return for both you and your clients. We’re here to help.
Contact our team to discuss your projects and how we can support your growth, profitability and success. Contact us here.
