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- Preconstruction Budget Risks for Local Government Projects (1 of 3)
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Tuesday, August 12, 2014
Part One: Scope
Creep
There are a few common problems we often encounter and
battle during the preconstruction process performing construction management in
the Louisville, KY and the Southern Indiana region.
Let’s talk about a major problem that has busted probably the most budgets across the country for school boards, county governments and all local leadership. The biggest challenge of keeping any construction project on budget is managing “Scope Creep.” Scope creep occurs when well-meaning architects and designers and the local government staff get carried away in the “visionary” stages and design process. Quickly the building begins to increase in square footage and cost as everyone’s wish list is fulfilled after years of working in what was oftentimes an older, small, inadequate space.
Let’s talk about a major problem that has busted probably the most budgets across the country for school boards, county governments and all local leadership. The biggest challenge of keeping any construction project on budget is managing “Scope Creep.” Scope creep occurs when well-meaning architects and designers and the local government staff get carried away in the “visionary” stages and design process. Quickly the building begins to increase in square footage and cost as everyone’s wish list is fulfilled after years of working in what was oftentimes an older, small, inadequate space.
But local government projects like schools, jails and
courthouses have a budget for a reason – usually it is all the community can
afford or all the tax revenue stream available.
It’s pretty understandable as architects have been taught
and trained to give the client exactly what they want from about the first day
in architecture school. Unfortunately in the architecture profession often the designer
that came up with the preliminary budget is different than the designer drawing
the plans. Often times Shireman will have to be the “bad guy” in
meetings with the architect or even save the local government staffers with big
dreams - from themselves.
Shireman will help control scope creep by being the
government’s voice in all design meetings, reminding the design team about cost
issues and using our latest in house real construction costs to keep the budget
on track. Value engineering of the design is also critical. We
constantly review and update the project budget and propose alternative ways to
achieve everyone’s goals. Managing scope creep keeps everyone on the right track and
leads a project to a financial success.
For more tips and tricks
on local government construction and real life examples – see our website at
ShiremanConstruction.com
Check back next Tuesday (August 19th) for part two of the series.
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