David Polzin Commercial Plumbing

The importance of construction costs

by admin on August 15, 2018

When we talk about costs we refer to the sum of all expenses attributable directly or indirectly to a given project. Total cost management in the construction industry is a regular job for the most experienced companies, thanks to the management of mathematical models and established business relationships with select suppliers over time. However, much of what is required to build is linked to the variables of the international market. Based on the behavior of supply and demand, the cycles of public investment, as well as exchange rate fluctuations, it is all a matter of predicting a realistic value of inputs and services, while at the same time monitoring the effectiveness of agreements, contracts and treated. To achieve this level of efficiency, a multidisciplinary team of professionals in architecture, civil engineering, economic engineering, customs clearance, finance, accounting, project control and optimization is required. Nor should we lose sight of the fact that construction is modernized every day, so that research and the use of new technologies should be common practices in this business, as these advances often bring significant savings.

For some companies, the use of low-cost materials may seem like a good opportunity to achieve some savings, and I do not mean fraudulent operations in which someone is deceived, but to situations of common agreement where the reduction of costs benefits the end customer. In this and in all cases, the real estate must be designed to last with a reasonable level of maintenance, so any immediate benefits linked to this type of savings must be analyzed in a comprehensive way to make a decision that is also intelligent in the long term.

A builder must take into account the conditions and requirements of its clients and must be able to identify all the factors that impact an investment budget from its earliest stages, since unexpected changes can put the scope at risk and, in some cases, the completion of projects. Certain items that might appear to be secondary, such as payment of fees, financial expenses, administrative expenses and margins of sale, should never be underestimated. Experience and maturity allow us to make conjectures, assumptions and estimates with a high degree of accuracy, and then take the necessary measures to be fulfilled, and that is only possible through strict control during the work.

With total cost management, it is not only a question of minimizing economic investment, but of protecting it, and that is why a construction project should always be left to experts.