Introduction
Preconstruction costs start accruing before a foundation is laid, or even before a commitment to build is made. Before construction starts there’s plenty of research to complete to properly estimate building costs, identify obstacles, finalize a design vision, research requirements, and so much more. The information acquired during this phase helps construction project managers assess risk and determine an appropriate schedule and budget. In addition, what is learned during this phase helps construction project managers create the most efficient and realistic plan to reach the end goal.
As information is discovered, it can be loaded into construction project management software to simplify the planning process while documenting findings and correspondence along the way. Investing time and allocating the right resources during the preconstruction phase can open the door to a successful build for you and your clients. Operate like the pro that you are and avoid issues down the road by taking advantage of project management software during the preconstruction phase.
What are preconstruction costs?
Preconstruction costs are accumulated during the research of a construction project. Clients need the right information to understand the commitment of building, risks associated, and costs. With construction costs and requirements varying by job site, there’s no standard formula for estimating construction costs. Therefore, research specific to the project needs to be completed in order to project costs, timeline, requirements, and so forth. Preconstruction costs can total 1% to 3% of the final build costs. Whether a client decides to proceed with building or not after the discovery phase, they are usually responsible for paying preconstruction costs.
As an example, preconstruction costs can include the following:
- Building drawings
- Permits
- Designs
- Survey and reports
- Contract fee
To help ensure a thorough and accurate preconstruction process is completed, project management software can be leveraged.
Why is preconstruction planning important?
Preconstruction planning provides critical information detailing what it entails to carry out a build. From properly assessing timeline, risks, budget, and other important details, the preconstruction planning phase sets construction projects up for success. While in some cases the preconstruction phase can help you realize building doesn’t make sense, it’s best to understand what lies ahead early on as opposed to halfway through a project.
What are the factors that determine preconstruction planning costs?
The primary factors that determine preconstruction planning costs can include the scope of the project, site conditions, permit requirements, feasibility studies, level of detail requested, and so forth. With advanced software contractors can streamline the preconstruction planning process, thus aiding them in keeping costs competitive and delivering the best plans.
Managing Preconstruction Documents
From communications to reports, documentation is critical during the preconstruction phase and beyond. Before construction begins, there are several documents that may need to be on record such as a site survey, drafting plan, environmental reports, and more. Construction project management software can be used to store documentation as well as leverage it to assess the risk of moving forward. It can also help find the most efficient schedule given the project specifics.
How much should preconstruction services cost?
Preconstruction services can vary in costs with most costing between 1% to 3% of the final build cost. The complexity and scope of the project can weigh on the preconstruction costs, as well as the total cost. It’s common for builders to have a preconstruction fee, that is separate from the project cost. While you may not have a client commitment to carry out the build, it’s important to treat the preconstruction phase just as you would the construction phase. Afterall, this is a gateway for the client to observe the efficiency, detail, and timeliness of the work you deliver.
What Activities are Included in the Preconstruction Planning Phase?
During the preconstruction planning phase several activities take place. The specifics can vary depending on the project itself, but below we’ve outlined some common activities. The preconstruction phase can set up the rest of the project. Utilizing advanced construction project management software can help deliver accurate estimates, efficient schedules, detailed risks, and so much more. Let’s review some of the activities you may start tracking during the preconstruction planning phase.
- Project feasibility study: In pursuit of determining if a project is worth the investment, a project feasibility study can be performed. Considerations such as potential issues, market considerations, and more can be considered.
- Construction site inspection: If you’re leaning toward the belief that a project is feasible, you’ll want to inspect the future construction site. This can help identify potential challenges and opportunities, including environmental factors, regulatory factors, access, and more.
- Design development: Design and architect teams can start working together to bring the design vision to life. This can help detail materials, time considerations, and more that can be used to help estimate and schedule the project.
- Project scope: The end goal is the vision of what you want to accomplish. The scope is everything it will take to get there. During the preconstruction planning phase, you can begin to define project scope in great detail.
- Estimates and budgeting: From findings to design details, estimates can start to be created for the build. If you’re working with a budget, this can be a good time to modify expectations to adhere to the budget before it’s too late.
- Project team assembly: Working with the right partners can make all the difference. During the preconstruction phase, you can help clients assemble the right team for the job.
How long does preconstruction take?
The preconstruction phase is an investment of time and money to ensure a successful final product can be delivered. In most cases, it can take two weeks to three months, but the timeline can vary. The larger the project and or the more complex the project, the longer it may take. During the preconstruction phase key players such as the client, project manager, designers, general contractors, and so forth work closely together to define project scope, budget, schedules, and more. While time is money, ensuring the right steps are taken with the right considerations during this time can aid in a smoother building experience. Alternatively, you may discover significant risks during this phase, detouring the build all together. In this case you may have invested time and money, but potentially avoided costly surprises or a poor financial investment.
How Preconstruction Planning Can Save You Money
Preconstruction planning can save clients, and contractors money. For contractors, it can help deliver total transparency and more accurate estimates to clients so they know what they’re signing up for. This helps clients ensure they have the right amount of funding available. The information uncovered during the preconstruction planning phase can also help create the most efficient project plan. An efficient and detailed plan can save clients and contractors money while speeding up the time it takes to complete a project.
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