Setting unrealistic budgets and/or timelines

mistakes-to-avoid-buying-leasing-5-of-5

Setting unrealistic budgets and/or timelines

Mistake 5 - Setting unrealistic budgets and/or timelines

If you have ever had a house built, or you've heard the stories of those who have, you've at least had exposure to how quickly/easily/frequently budgets and timelines can change.

There is a saying in construction, "It always takes longer and costs more than expected."  Why?  Because there are so many variables beyond our control, from  supply chain and shippers, to sub-contractors, inspectors/city codes, and the weather just to name a few. It is impossible to forecast them all.

So how do you, on the outside looking into the unfamiliar world of construction, understand and set realistic budgets and timelines?

First, you should identify your team of trusted advisors:

  • Family and friends who have been through the process before
  • Realtors who understand the markets and have their own team of trusted advisors
  • Financial advisors and/or lenders who can help with finances
  • A consultative General Contractor who will help you plan and then deliver the optimal space to support your success

Next, identify the steps, timelines and costs involved throughout the processes from start to finish:

  • To start, an experienced Realtor will be invaluable while you identify and negotiate terms for the new space
  • Find a General Contractor who is willing to take the time to talk through the steps, timelines, and costs for you in detail

Finally, remembering that construction always takes longer and costs more than expected, make allowances for that in your plans.  Identify points of risk with your GC and add time and a contingency budget of at least 10% to the overall project cost.

Jeff Hurst

NorthStar Commercial Interiors, LLC

972-813-9190

www.northstarrm.com

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