There are many factors that influence the cost of construction. Some are obvious: land acquisition, permits, material and labor costs. Then there are the future costs or lifecycle costs to consider: maintenance, repair, replacement—the cost of keeping the facility and its systems up and running over the life of the building.
But time is money, and a poorly run project, or one that does not meet the owner’s specifications or budget from the start, will result in delays. This means the owner can't occupy the building on schedule and the cost of the overall project increases.
One of the most effective ways to control construction costs is to establish early involvement on behalf of the owner, the designer and the contractor. This may seem obvious, but under the traditional method of construction delivery, the owner commissions an architect or engineer to prepare drawings and specifications, then separately selects a contractor by negotiation or competitive bidding at a later stage in the project’s development.
This can present a number of problems for the owner.
Can the design be built for the proposed budget and within the desired timeframe? If the project needs to go back to the drawing board, how many months will be lost? What if the architect and contractor disagree? How many contracts need to be managed by the owner?