Five Ways to Reduce Cost of Construction
People sometimes wrongly think that Architects make building projects more expensive. While it may be true in many instances, a good Architect can help you reduce the overall cost of construction. The trick is to find a competent Architect and establish a trusting relationship with them. Look for an Architect who listens to your goals, priorities, and budgetary constraints and is interested in being involved in the construction phase of your project.
Here are five strategies that can help reduce the cost of construction:
1. Reduce Square Footage
One of the most effective ways to reduce construction costs is to decrease the overall area of the remodel or new construction. Think flexible use of space, efficient layout, and no unnecessary architectural flourishes. It’s not uncommon to start the design with an “all-out” approach, where initial layouts allocate space for each function, regardless of whether it’s a must, nice to have, or completely optional. As the budget plays a bigger part in the conversation, we look for creative ways to reduce the square footage. This method works because cost per square foot is a common metric used in pricing construction projects.
2. Reduce Construction Duration
This is a less intuitive but not any less effective way to bring those construction costs down. In addition to materials and supplies, a large part of the contractor’s budget is labor. Ideally, a construction project is linear - we begin with site clearing, excavation, and utilities and end with countertops and switch plates. However, the flow of work can get disrupted due to poor planning, unforeseen conditions, or supply chain delays. When that happens, the contractor has to stop the part of the job they are in the middle of, skip ahead to do another part out of sequence, and then go back to finish the first task. This stop-and-go pattern means they have to re-mobilize their workers and reschedule subcontractors, losing efficiency, extending schedules, and driving up labor costs.
An Architect can’t do much about the supply chain, but planning is our superpower. We can help you make as many decisions as possible before construction starts and record them in the detailed construction drawings that the contractor will use to plan their work. The more decisions are made before the shovels hit the ground, the more straightforward, linear, and cost-effective your project will be.
Often, Architects are rushed during the design process. The client’s rationale for this - saving on Architect fees - doesn’t hold water in the long run. The Architect fees are best understood in the context of the whole project, not just the design phase. The more time the Architect can spend on figuring out the details of your project, the less time and money will be wasted during construction. And construction time is more expensive than design and planning time. Anyone who has ever seen a change order will tell you that it’s much cheaper to pay the Architect to prevent this from happening down the line than to address it during construction.
3. Sustainable Design
We discuss sustainability early in the design process, allowing us to look at the project with both the initial investment and long-term performance in mind. Incorporating sustainable design principles can be beneficial in the long run as it saves costs and contributes to environmental preservation. Various strategies, such as energy-efficient building systems, water-saving measures, and passive design techniques, can be implemented to reduce maintenance and operating costs throughout the lifespan of the building. During the construction phase, sustainable design methods can also help reduce material waste and lower energy consumption. This is because sustainable design and optimized construction practices often go hand-in-hand.
4. Efficient Project Management
Effective project management is essential to minimize costs and ensure smooth construction operations. Timely decision-making has a big influence on the construction schedule (Item 2 above) and can be the difference between a project that gets done on time and within budget and one that ends up blowing both the budget and the professional relationships. Construction contracts often have timeframes within which decisions have to be made by all the involved parties so that the work progresses smoothly.
Another biggie is the communication between all stakeholders. Done right, it can prevent rework, delays, and bad blood. When choosing your contractor, ask yourself: Do I like their communication style? This question is more important than the quote they may give you.
Do not skimp on your contractor’s project management fees (overhead costs). If they mean implementing lean construction principles and advanced project management tools, they will pay for themselves by streamlining the construction process, optimizing labor allocation, and reducing the overall project duration. This, in turn, leads to significant cost savings.
5. Value Engineering
Value engineering (VE) involves a detailed analysis of the project to identify opportunities for cost savings without compromising on quality or performance. By closely collaborating with our clients, contractors, and suppliers, we can engage in a transparent and constructive dialogue to identify smart alternatives. This can range from selecting more efficient systems or components to finding cost-effective alternatives to high-cost materials.
The most cost-effective investments happen early, during planning and design. An experienced Architect optimizes this process, preventing much greater expenses later on. Their expertise ultimately reduces overall construction costs.
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