How to Keep Your Steel Building Project in Budget

September 3rd, 2019

When we start a new steel building project, we have a lot of expectations and ideas for the project. It often happens that these expectations and ideas come with price tags, the huge, expensive ones. We also wish to save as much money as possible so that we can use the resources elsewhere. You don't have to make significant sacrifices to contract your budget. You may not know, but these simple steps and decisions can help you save a considerable amount of money throughout your steel building project. All you have to do is follow these tips without compromising on the quality.

Define Your Budget

The first thing you need to do is decide and define your budget. Make sure you know all the sources from where you can source money. Your bank account, returns from savings, loans - find out what can give you money. Once you know the sources, decide how much you are ready to pay for the project. Share this information with your steel building manager so that even they know what you are expecting and how much you can afford. don’t start out by asking, "How much will the building I want cost?" The real question is, "How much do I really want to spend on this steel building project?" Keep in mind that the building itself is usually only 40%-50% of the total cost. When preparing a budget for your construction project, consider the following building expenses for a typical steel building:

- Land

- Building permits, fees, and inspections

- Builder’s risk insurance

- Utility and sewer hookups

- Earthwork and excavation

- Foundation

- Metal building package and shipping

- Framing erection crew (DIY builders save here)

- Plumbing, electrical, and HVAC installation

- Additional exterior finish like brick, stucco, stone, etc.

- Interior finishing of interior walls, fixtures, doors, cabinets, etc.

- Final grading

- Parking, driveway, pavement, and roadwork

Cross-Check the Bids

After you’ve identified your budget, make sure that you verify that the project and material costs are the precise estimates, rather than basing your project on assumed costs, which could be detrimental. Do this by ensuring that all work is clearly defined, and then get confirmed bids on everything from land to building materials from your steel building expert. Once you have final costs and contracts in place, add them all up and make sure to add at least a 20% contingency to account for unexpected costs (apart from the extra costs mentioned above), so you don’t go over budget. Keep in mind that if you’re earlier on in the project, you may want to have a larger contingency until you have fully defined the project and associated costs. Later on in the project, you can reduce the contingency as all costs will have been confirmed.

Avoid Scope Creep

Scope creep refers to uncontrolled growth or changes in the scope of a project. Although it is common to have some aspects of a project change once it is underway, it is helpful to create a process for changes and to have the skilled steel building team in this area. Create a framework to communicate changes to your builder and help project managers keep the end goal in mind. This is essential for properly budgeting the team’s time and keeping the project moving forward.

Communicate Well

Build your timeline carefully. Do not try to keep all these details in your head!  Write it down or enter it on your smartphone or tablet. Search the internet for project management software and apps to help you with this process. If you need any assistance in managing your work, ask your steel building expert to do it for you. Moreover, communicate more on the lines of being within your budget. To cut your metal building budget, ask your building supplier what money-saving modifications they would suggest.  Often simple design changes can make a big difference in price, without compromising the function of your building. And don't just ask. When the experts suggest something, make sure you are flexible enough to take their suggestions. After all, they are experts and know things about steel building projects better than you.

Avoid These Budget-Busters

Budget-busters are things that may seem appealing but may cost more. Not only this, but the common threats to your steel building project can also be termed as budget-busters. Ignored budgets will swell exponentially.  In fact, it is not unusual for building projects to go 15%-20% over budget. However, busting the budget is preventable. Avoid these costly building mistakes:

Change Orders: Making additions and changes to your design after the order reaches production is a body blow to the budget. Do not release your plans for production until you are satisfied with all the details.

Bill of Lading: When your building kit arrives, inspect the framing materials. Check the bill of lading point by point and be sure that nothing is damaged or missing before you attempt construction.

Erection Crew: Having too few or too many workers on the job is inefficient. Therefore, you should consult with your steel building company to get the right-sized crew to handle your project effectively.

Safety: Proper equipment, thorough training, and extra care can prevent costly job site injuries. This is something your steel building company will take care of. From your end, you must hire a reputed company only to ensure proper use of equipment.

Security: Protect your project site from theft and vandalism to avoid any losses. You can hire a security company for the same.

Lastly, be in touch with your steel building manager at every stage. They can suggest more helpful ways to be within the budget at every point.

© 2022 Northern Weldarc Ltd. All Rights Reserved.
Privacy Policy