When you are a small business owner who is planning an upcoming construction project, you know how important it will be to save every dollar possible while still maintaining a high level of quality. Yet in today’s world, it seems as if everything associated with your project costs more and more. If you want to increase your project budget, here are some steps you can take to make it happen.
Hard and Soft Costs
To increase your budget, you will need to have a detailed analysis of your project’s hard and soft costs. Hard costs are those directly related to the construction process itself, while soft costs are generally services needed before or during construction. On most projects, hard costs are roughly 70 percent of your budget, while soft costs make up the remaining 30 percent.
Negotiate Lower Prices
One of the best ways to maximize your project budget is to negotiate low prices on such things as consulting fees and materials. Along with architectural and design services, you will also need to factor in surveying services and environmental testing fees. As for your materials for building, you can stretch your budget by working with contractors who have established relationships with various suppliers. By being able to obtain materials in volume, you can save potentially thousands of dollars.
Do It Yourself
Even if you have a major construction project planned for your business, there are likely still some things you and your employees can do beforehand to help save money. This can include clearing brush and clutter from an area, performing basic demolition, or other tasks that can allow contractors to get started right away with your project. Remember that the sooner contractors can complete your construction project, the more likely your project will come in under budget.
The Power of Software
Finally, you can utilize various types of software to help you increase your construction project budget. For example, accounting and scheduling software can help you analyze costs, create simulations regarding how various aspects of your project may cost more or less, and how labor costs may impact your total project cost. Project management software can also be used to help you determine how costs for safety supplies, security, and other related services and supplies may factor into the completion of your project.
If you use these tips to your advantage as you plan your construction project budget, you may be pleasantly surprised to see how you can increase your project budget, save money, and have a wonderful new building for your employees and customers.
Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan
