How Commercial Construction Projects Go Over Budget

Commercial construction projects are monumental undertakings, indeed. From coordinating materials to ensuring subcontractors show up on time, there's a lot of project management that has to take place to have a commercial construction project stay on time and on budget. Therefore, these projects often go over budget for a variety of reasons.

Almac Sotebeer is a local commercial construction contractor located in Elkhart, Indiana. We pride ourselves on staying on time and on budget with our commercial construction projects. With decades of commercial project management experience, we strive for 100% customer satisfaction. Learn more about some of the reasons that commercial construction projects can go over budget, and contact us today!

Unanticipated Site Conditions

One of the most common reasons for construction projects going over budget is unanticipated site conditions. These conditions refer to any aspect of the project site that are not explicitly documented in the project plans and specifications. This could include anything from underground conditions that were not known at the time the project was planned to unforeseen structural issues with existing buildings on the site. These kinds of issues can significantly increase the cost of a commercial construction project, as they require additional resources and materials to fix.

Changes in Design Specifications

Changes in design specifications can also lead to commercial construction projects going over budget. This can occur when the project owner changes their mind about the design of the project or when new regulations are put in place that requires changes to the commercial project. In either case, the cost of making these changes can add up quickly, leading to the commercial construction project going over budget. It's best for a commercial construction project manager to discourage any last minute changes to the project to ensure it stays on budget.

Material Cost Increases

Material cost increases can also lead to commercial construction projects costing more than anticipated. This is due to the fact that the cost of materials can fluctuate over time and unexpected changes in the market can lead to a sudden spike in the cost of the materials needed for the commercial construction project. This can lead to the project going over budget if the project owner is unable to cover the increase in cost.

Labor Shortages

Labor shortages can also contribute to construction projects going over budget. For example, when there is a shortage of skilled workers in an area, the cost of labor can become more expensive due to the simple law of supply and demand. This can also cause a delay in the project if there is not enough manpower to keep the commercial construction project going.

Poor Project Management

Poor project management is another contributing factor that can also lead to commercial construction projects going over budget. This is because when a project is not managed properly, it can lead to delays in the project timeline, which can result in the commercial construction project going over budget. Poor project management can also lead to cost overruns due to incorrect estimates and a lack of proper oversight. For this reason, it behooves all principals to invest in the best commercial construction project managers, such as Almac Sotebeer, for their Elkhart, Indiana-area commercial construction projects. Call today.

Inexperienced Contractors

Inexperienced contractors can cause an increase in a commercial construction project's expenses. This is because inexperienced contractors may not understand the complexities of a project and make mistakes that can result in cost overruns. In addition, inexperienced contractors may not be able to anticipate potential problems that could lead to additional costs. And, delays are more likely to happen when inexperienced commercial project managers can't coordinate their crews, materials, equipment, and more for their projects. Almac Sotebeer has been building a better community since 1992. Let our experience keep your commercial construction project on track. Call today.

Lack of Communication

Lack of communication between the project owner and the construction team can cause problems and delays in a commercial construction project that can be costly. When there is a lack of communication, it can lead to misunderstandings and a lack of coordination between the two parties. There may even be arguments and disagreements, which causes delays, too. Be sure you are on the same page as your commercial construction team today.

Uncontrollable Circumstances

Let's just say it: the weather. The weather is one of the biggest reasons that commercial construction projects go over budget. For example, if it snows or rains a lot, the ground can be too frozen or too soggy to run heavy equipment or even to frame your building. And, there's nothing one can do to control these circumstances. Crews are often left idle, which costs money every day. When you partner with an experienced commercial construction contractor, they can often anticipate these delays and be prepared so the financial impact is minimized.

PARTNER WITH ALMAC SOTEBEER TODAY

As you can see, there are a number of factors that can lead to commercial construction projects going over budget. Unanticipated site conditions, changes in design specifications, material cost increases, labor shortages, poor project management, inexperienced contractors, and a lack of communication are all potential causes of a project going over budget. As such, it is important for project owners to remain vigilant and ensure that all of these factors are taken into account when planning and executing a commercial construction project. This will help to ensure that the project is completed on time and on budget.

Almac Sotebeer is a local commercial general contractor that specializes in commercial and industrial projects throughout the Elkhart, Indiana area. We stand by our values of integrity, trust, and tradition when it comes to your construction project. We offer full transparency and prioritize communication. Our pre-planning stage for our commercial and industrial construction projects is extensive, as we do our due diligence in order to mitigate the chance of going over budget.

Our family-owned construction company offers full-service construction services from start to finish, including project management. We work with all of our customers to devise a custom solution that will work for them in order to yield the building of their dreams. Let our design/build firm craft your perfect commercial building.

Call for a free estimate today!