Keeping Construction Budgets on Track

In the ancient Greek city of Ephesus, when an architect accepted a major public project, he had to pledge his property as security. If the project remained within the architect's estimate, he was recognized with marks of honor. If no more than 25% had to be added to the estimate, the treasury paid the difference. But when the project was more than 25% over budget, the funds came out of the architect's property.

In a 1993 survey sponsored by the American Institute of Architects, clients gave architects in general high marks for their professionalism, creativity and knowledge. In the "needs improvement" area, however, participants said architects need to demonstrate greater sensitivity to client budgets.

Contracts Place Responsibility with Builder
Architects today do not accept the kind of financial responsibility for budgets as the ancient Greeks did, but builders often do! We provide budgets and accept the risk of staying within those numbers every day through design/build, guaranteed maximum price, and lump-sum contracts. At Beyer Construction we do a thorough job in preparing and administering budgets because our money and reputation are on the line.

As with any worthwhile venture, the best assurance of a successful and cost efficient construction project lies in good planning. One of the surest ways to maximize the project's value and keep its costs in check is to involve the builder during the design phase of the project.

No Substitute for Planning and Teamwork
Each member of the construction team brings unique strengths and points of view to the project. Unlike the designer, the builder is involved on a daily basis in the evaluation, purchase and use of building materials, services and suppliers. As a result, the qualified builder can provide practical preconstruction services, including the assessment of designs for constructability, determining whether potential problems may occur and where, and how best to avoid them.

Depending on the builder's particular qualifications, the company can provide expert counsel on alternative construction materials, systems and techniques. The builder's intimate understanding of job sequencing and ability to offer contingency plans in the event of bad weather and other potential delays can help keep budgets from getting out of control.

Saving Money, Saving Time
Such services do more than help keep a lid on costs. They can save the owner precious time by reducing planning errors and omissions, budgeting realistic lead times for materials, and reducing the number of changes once construction has begun.

At first blush, it may seem more costly to involve the builder early in a project but, in fact, just the opposite is true. In ancient times, when architects supervised the construction of their designs, they accepted considerable financial risk. Today, with the general contractor assuming that risk, it makes eminently good sense to get the builder on board as soon as possible.