Budget Building with Clearly Defined Scopes

OVERVIEW

One frustrating part of the pre-construction process is budget estimate creation for building owners and their representatives. There is never enough data on hand.

If your budget comes in too high, you risk project delays while you try to revise and lower the costs down, which can potentially tie-up the use of your funds.

Sometimes, your budget goals are lower than the vetted bids you receive, creating a stressful situation that forces you to choose between two complicated options: Cutting your project scope or asking for more money.

The above can limit your building users’ experience and can hurt your bottom line–quite the unfavorable choice.

Creating More Accurate Budget Estimates

To avoid deciding whether to either cut your scope or go over budget, you can now create a more accurate budget estimate through a comprehensive Scope of Work (SOW). An SOW gets your estimates off to a winning start.

Sadly, many projects run into difficulty because the SOW is incomplete, causing uncertainty for the construction team. To follow through with a complete SOW, make sure to report all the scope options.

Call Ferrandino & Son at (866) 571 – 4609 or email sales@ferrandinoandson.com to experience the full impact of our construction program projects. 

Scopes 101

When you think of a construction scope, most experts in this field think of AE Scopes. These are the bread-and-butter items that describe the work done and the list of people that complete the project.

What about Context Scopes? To some degree, AE scopes assess the ideal situation, while the Context scope describes the project’s shortcomings. Failing to consider any project context can lead to severe outcomes—such as lost time and money.

When implementing a Construction Process Scope, otherwise known as an Execution Scope, make sure you’re assessing how the work gets performed by communicating equipment needs, safety requirements, and production.

SOWs should lead you to one precise decision, leaving no room for clarification, so your budgetary expectations stay in-line.

Building Budgets Require Clarity

Tips to make sure your budget goals express what you want, make sure your word usage is straightforward and robust. Also, include additional aides to prevent confusion, like graphs and photos.

An over-explanation of your remodel budget objectives is better than leaving the possibility of a misinterpretation. As a seasoned professional, you know that clarity and thorough communication is a must for any construction project to succeed.

By gathering and preparing your scope data, you can simplify the purpose of your SOW to fit your spending.

Encourage Your Remodel Process Through Data & Expertise

Thinking like a contractor helps your overall SOW, but why not make things easier and partner with an experienced general contractor?

Searching out professional advice from trusted vendors lets you tap into the wealth of knowledge that their experience brings. Gaining contracting expertise can help ensure your scope is valuable and thorough.

Construction-cost databases are typically associated with estimations. To have a substantial cost database, you can fill in the right knowledge gaps in your accounts from the experts you’ve contacted that some clients might not consider.

This kind of data comprises all the components and labor associated with your next remodel jobs and is instrumental in the early planning stages in validating available costs.

In summary, proper SOWs set the whole project’s tone and for no questions to be unanswered!

CONTACT US

Are you running low on ideas to manage all your construction remodels? Contact us now to see how Ferrandino & Son can best deliver your remodeling goals today!
Phone: (866) 571-4609