Cost Management in Construction

Whether your project is a renovation or new build, budgeting is one the most crucial elements of the construction process. For many, cost management may be daunting, but with the right knowledge and guidance, cost management may turn into one of your most valuable tools throughout the construction process. Generally speaking, we’ve identified five (5) main cost management strategies that may help you on your next project.

But firstly, what is cost management? Cost management is defined as the art and science of planning, allocating and controlling costs to complete a construction project within the approved budget. In simpler terms; setting a budget and ensuring that you stay within said budget.

Okay, so what are these five (5) main strategies? In no particular order, the five (5) main cost management strategies that we have identified are as follows; 1. Hire professionals, 2. Control or manage the square footage of your building, 3. Control or manage the features and or style of your building, 4. Explore your design and construction options, 5. Follow through with proper on site management.

1. Hire Professionals

In the construction industry, there are several professionals that you should utilize. They are; Architects, Engineers, Licensed Plumbers, Project Managers and Quantity Surveyors. More than likely, during the design process, some of these professionals should present to you as a client, different ways or techniques to save money or keep your project within an approved or agreed upon budget.

2. Control or Manage the square footage of your building

With the help of the aforementioned professionals, one of the first strategies your Architect should explore is controlling or managing the square footage of your building. The square footage of your building is directly proportional to your overall construction cost and should be treated with the utmost respect. Our advice to you before meeting your Architect or even

during the design process is; determine which spaces of your building you absolutely need and what are the minimum sizes for each of those spaces. Create a list in the order of most important to least important and discuss it with your Architect. This will come in handy when it is time to increase or decrease the measurements of spaces or even omit some spaces in an attempt to manage your overall square footage.

3. Control or Manage the style or features of your building

Within the same breath of discussing square footage with your Architect, he/she/they should also be highlighting to you the cost per square footage that each particular architectural style carries. Traditional, Mediterranean, Transitional and Contemporary are the most prevalent styles in Trinidad & Tobago. As at 2024, the traditional building style can start from $650TTD per square foot and reach all the way up to $850TTD per square foot whilst the contemporary building style can start from $900TTD per square foot and reach all the way up to $1,200TTD per square foot. With the previous two points in mind, you can now estimate your construction budget and thus have a more productive consultation with your Architect, design more efficiently and ultimately control your actual expenditure more efficiently in the long run. As it pertains to specific features, certain styles by default carry building elements that naturally increase the overall cost per square foot. For example; the Mediterranean architectural style is a more ornamental or decorative style which in turn requires more aesthetic additives, building material and sometimes more specialty skillset from the workforce. As such, understanding the nuances of each architectural style from your initial consultation(s) is key in maintaining/controlling your overall budget.

4. Explore your Design & Construction Options

So now, what is meant by “explore your design & construction options”? Well, this can mean going through different design options under each discipline to ensure that your design stays within budget by implementing the mot economical strategies that also align with your overall design vision and budget. For example; a shed roof (a roof that slopes in one direction only) may be a cheaper option to a hip roof (a roof that slopes from all sides) and may save you tens of thousands of dollars (depending on the size and complexity of the project). Another strategy your hired professionals may propose to you is “phasing”, whereby you properly plan/design, budget and construct one part of the building first and the other part(s) later on.

5. Follow through with proper On Site Management

Finally, to ensure that the previous strategies are not done in vain, one can or better yet should hire a professional or team of professionals to oversee the actual construction of your now well-designed building. For some, this may come in the form of various previously hired professionals or a Project Manager or a Quantity Surveyor or all of the above given the complexity and or size of the project. Doing this, ensures that the building is constructed to the specifications outlined in the drawings, mitigates on site mistakes, ensures that on site issues are resolved faster and in the most economical way and that the Contractor and Sub-Contractors are held accountable and to the highest standard possible.

Ultimately, having the knowledge is only the first step towards proper cost management. We implore that you do not take for granted the importance of proper planning, design, execution and management as it may save you a penny or two in the long run.

Cheers,

DESIGN+