Factors that Influence the Cost of Construction

When you think about construction management, what comes to your mind? I know that there’s a lot to think about regarding construction, especially the factors that would affect the overall cost.

The process of estimating house construction costs is complex, as there are many factors to consider before coming up with an appropriate estimate for the project.  You have to think about the budget and the cost of materials including labor and any emergency expenses that may arise in case there’s something more that’s needed for the project to be completed.

In preparation for the cost estimate, a decent amount of research is needed, like the type of house that you want built, the materials to be used, where and how the materials are transferred, and the cost of labor. There is also the time that you need to spend before, during and after the construction. Finding a reputable real estate developer or decent construction company to help you with the estimate is recommended as they would know what to look at, when’s the best time to do it, how long it can be finished, what the best materials are to get and so on. Construction companies can provide you with a more detailed and more realistic amount and time frame in regards with this matter.

Below are the six main factors affecting the overall cost of construction:

1. Site Conditions

The conditions of your construction site affect your estimate. Does it have contaminated materials? Is it a hazardous workplace? Is it situated in environmentally sensitive neighborhood? Is there a buried pipe or storage tanks nearby? These are only a few among the many other questions that may come in your way. Knowing the conditions of the site first is like having a bird’s eye on the whole project.

2. Insurance

It is recommended to have your trusted real estate developer deal with insurance, as the insurance process can be a real pain especially when you’re not familiar with the ins and outs of various policies. There are the normal insurance requirements like payment bonds, but some have additional requirements depending on your location and the laws applied in your area.

3. Location

The location is one of the basic factors when it comes to the cost. Are you situated in an area that’s easily accessible? The cost of transportation can drag you down when you’re far away from the resources you need; thus having a more remote location means having to spend more.

4. Materials

This goes hand in hand with the location. Where are you purchasing you materials? Are the materials needed available locally or do you need to buy them somewhere else? There’s also the question of the quality and the brand of materials you’re using – plus shipping on top of the cost of materials.

5. Labor

Labor wage varies from places to places, so it is advised to do a bit more research on this part and compare the prices with different companies. Also check out services offered by these construction companies so you know what you’re paying for and who you’re employing. One tip would be to check their websites and their listing ads and maybe try to contact their previous clients for references.

6. Schedule

Some companies require a down payment when the building project is a few months away. Also, unpredicted delays will be more costly, so do not postpone unless totally necessary.