How to reduce construction costs: 5 strategies

Reducing construction costs requires the use of specific software and the implementation of a clear strategy. Find out more about the most effective strategies for your construction project

Delay and cost overrun are inherent part of most projects despite the much acquired knowledge in project management and the construction industry is also known to be one of the most wasteful and inefficient in terms of how it uses resources. Therefore, it is useful to take advantage of the technological progress and to adopt some useful strategies and implementations that you can take today to keep your project within budget.

In order to drastically reduce construction costs, we recommend you to follow the strategies that we’ll be outlining in this insight and immediately start using for free:

• a construction management softwarethat enables you to effectively manage and solve in a time- and cost-saving manner all the issues that might arise during the various stages of the design process;
• a construction document management system to organize, update and keep track of all project-related documents, avoiding delays and wasted time that can increase construction costs.

What are the biggest factors affecting construction costs

To help you keep overruns at a minimum in construction projects, it’s important to understand the root of the problem. Below, we list some of the most common cost overruns in construction projects relating to:

• size, type and complexity of the project;
• value of vacant land for residential development;
• incidence of urbanization charges;
• quality of materials, finishes and plant systems used;
• construction techniques adopted;
• conditions of the construction site;
• cost of labour;
• market trends.

In addition, there are a number of aspects related to design methodologies adopted that can have a significant impact on construction costs.

Traditional design methods, compared to the innovative BIM approach, can in fact lead to a number of inefficiencies mainly due to:

• poor communication and collaboration between stakeholders;
• the inability to detect and resolve design errors in advance;
• loss of data during the information exchange between different subject areas;
• the inability to manage the project and all related documents centrally.

These factors inevitably result in increased construction costs. In this regard, let’s try to find out which are the most efficient strategies to keep overruns at a minimum  without, however, neglecting the quality of the final outcome.

Constrcution cost saving

5 cost-saving strategies for construction companies

To help you reduce costs on your projects and stick to your assigned budget, here are 5 important tips:

1. reducing the scope and complexity of the project: when planning construction, it is essential to be as realistic as possible. Overly complex design elements can be costly and pose greater risks in terms of scheduling. In this regard, try to set clear and achievable expectations, and effectively plan every aspect of the project to make it smoother and less demanding;
2. keeping track of materials and systems: the best way to save on construction costs is sometimes simply to change materials, systems, and construction technologies. It is important to always consider all design options before making a choice. Try to use cheaper solutions without, however, compromising the aesthetics or overall quality of your project;
3. minimizing construction waste: to reduce construction costs, it is important to consider effective and alternative methods of reducing unnecessary waste. Try, for example, to save and reuse excess construction materials whenever possible instead of throwing them away. This saves costs and minimizes impacts on the environment;
4. improving planning: construction projects often go over budget due to unforeseen changes during construction. These changes require costly rework that must be avoided by all means. Be sure, therefore, to consider important factors and potential risks early on in the planning process. Also try to make as accurate and repeated reviews of the design as possible to avoid any possibility of error;
5. choosing the right design strategy: to reduce design costs, it is important to choose a well-defined design strategy that allows you to have full control over the entire construction process and avoid waste and costly delays..

How BIM helps in reducing construction costs

As we have mentioned, managing any building project’s financials with a tight budget can be challenging. Some strategies if correctly addressed will help you slash your construction costs without compromising quality. From planning and budgeting accordingly to managing resources effectively, it is important to choose a reliable design strategy.

Building Information Modeling addresses this need by providing innovative solutions that help improve communication, reduce misunderstandings and address potential problems at an early stage during the construction process. There are in fact:

• BIM Authoring software that help AEC professionals to create detailed 3D models that can be used to visualize a building’s design, construction, and maintenance before their actual construction. Through 3D visualizations and functions to simulate the use of space, industry professionals and their clients can explore different alternatives and agree on a common vision from the very beginning. This minimizes the likelihood of having to make costly and time-consuming changes once construction is in progress;
• construction document management system from the BIM model during the preliminary design phase. This tool helps you to run future expenses calculation more accurately and helps you to optimize costs by comparing the cost-effectiveness of different materials and ensuring a more effective use of resources;
• construction document management system that enable team members and other stakeholders to exchange information, coordinate planning, share models and project deliverables, and seamlessly collaborate in real time. This allows greater control over project execution and technical decision making throughout the design and construction phase;
• BIM clash detection software to detect geometric conflicts in advance and reduce or completely eliminate the need for future rework.

In addition to the solutions above listed, in order to minimize project construction costs, it is essential to use solutions that allow you to:

• manage workflows more effectively;
• streamline issues resolution.

Finally, if your objective is to reduce your project’s construction budget, I recommend that you immediately try a construction management software that helps you to identify tasks that are falling behind schedule and that allows you to turn design issues into tasks that can be solved in a few simple steps, therefore, saving time and costs.