As building cost consultants with over ten years of experience, Accent Estimating understands that creating a realistic budget is crucial for the success of any project. This budget must incorporate all the materials and labour required for the build. Dedicated estimators cover all variables and unforeseen costs that can quickly disrupt an impractical budget and building schedule.
Our team has seen some build situations quickly go awry when the builder has misquoted the budget. Today, we’re covering the warning signs to notice during the tender and construction process, with the insight of building cost consultants on how to avoid any costly complications.
Underquoted tender
Utilizing the expertise of building cost consultants can significantly enhance project outcomes.
For many clients, the tender process can seem overwhelming. This could be their first home build or construction project, or they may be unfamiliar with the many integral costs of a complex project beyond just materials and labour.
This can lead clients to select the cheapest tender without properly analyzing the costs that have been cut or considering the need for contingency planning. Builders can also misquote costs, creating an unrealistic build timeline. Tenders need to be detailed and thorough, yet many builders lack the time or tools to avoid tendering at a loss.
Engaging reliable building cost consultants early in the project can help mitigate risks associated with underquoted tenders.
Building cost consultants can assist in ensuring accurate and timely progress claims throughout the project’s lifecycle.
As building cost consultants, our team has seen many quotes that are considerably cheaper than competing tenders during the tender analysis stage, typically not due to cost-effectiveness but infeasibility. Avoiding the warning signs of underquoted tenders and tender mistakes during the early planning stage is a great reason to hire an estimator for your project. Great estimators provide multi-faceted and realistic estimation services that successfully secure tenders for construction businesses.
Inaccurate or poorly timed progress claims
Consulting with building cost consultants can help identify the right builder for your project needs.
Progress claims are an important facet of the build process. They ensure that builders are paid promptly and that the construction schedule remains effective. Progress claims are usually submitted detailing all the costs of labour and materials at the end of each phase. This ensures precision with the allotment of funds for each construction phase.
Clients can encounter issues when regular progress claims aren’t submitted, or when the work that is invoiced hasn’t actually been completed as claimed.
Building cost consultants can provide oversight to ensure effective project management practices are followed.
Builders should plan ahead and ensure they have the cash flow needed to finance 2-3 stages of construction. This avoids any delays to contractor payments. Progress claims should also clearly outline the work included and include a claim schedule detailing the percentage of work completed.
Red flags to notice include if a builder’s progress claim does not match the build progress, or if they request payments outside of documented progress claims.
Trusting building cost consultants to manage potential conflicts of interest can safeguard your project’s budget.
Inexperienced builders
Building cost consultants play a vital role in developing comprehensive cash-flow forecasts for your project.
For optimal results, consider feedback and insights from building cost consultants at each stage of your project.
An obvious warning sign that your build will experience delays is if it is outside your builder’s or contractor’s field. At Accent Estimating, we’ve been approached by clients who have received tenders from contractors lacking construction backgrounds. If the builder does not have experience in your project type, it suggests their craftsmanship may not be of high calibre.
Inexperience can also indicate that a tender will be incorrect due to insufficient knowledge of the project’s scope. A clear indication that a builder is not suitable for your project is if their license is in a company name rather than a personal name, or if they do not provide HIA or MBA membership.
Poor project management
If there are warning signs regarding the builder’s inexperience, it will likely lead to poor project management. Unknowledgeable builders may struggle to correct work completed to a poor standard, and they may not have built a trusted network of contractors. This can result in inexperienced apprentices undertaking your build while the builder manages the site remotely.
To avoid poor management or scope disputes, builders need estimators to help ensure that any project runs smoothly and that all work proceeds according to plan and budget.
Conflict of interest
A builder recommended by a party with a direct financial connection can cause a potential conflict of interest and an inaccurate tender and budget.
A neutral party, such as an estimator or building cost consultant, collaborates with the architect, builders, contractors, and clients. This collaboration creates the most streamlined schedule and budget possible.
An estimator supports a project from start to finish with an accurate budget, realistic schedule, comprehensive claims, and cash-flow forecasts. This helps avoid any scope disputes or conflict of interest.
Looking for premium building cost consultants in Australia?
As expert building cost consultants, Accent Estimating understands that accurate estimations ensure a streamlined build process without costly mistakes. Our experienced team provides reliable support to builders and contractors within the property, development, and building sectors for accurate estimates every time.
We are uniquely positioned to provide high-quality remote services across Australia, including Sydney, Melbourne, Perth, and Brisbane. Our team utilizes the best industry resources to deliver straightforward estimating support for over 700 projects since 2015.
If you would like to find out more about our estimating services, you may give us a call on 0413 953 869 or fill out the contact form on our website.
If you would like to find out more about our estimating services, you may give us a call on 0413 953 869 or fill out the contact form on our website.
If you would like to find out more about our estimating services, you may give us a call on 0413 953 869 or fill out the contact form on our website.
