Don’t Let Cost Overruns Cause You To Settle For Less

Scott Price | September 21, 2016

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Simply say “cost overruns” to anyone involved in a commercial construction project and you will get a reaction. The fact is, many in the industry have at least one horror story about a project that went wrong. The complexity of the construction process and the numbers of firms and individuals involved at every level of a new build or commercial construction project often leads to unanticipated additional construction costs. Whether it’s an oversight, an error on the drawings, the discovery of pre-existing conditions, or delays from abnormal weather or supply conditions, change orders have a bad reputation and can end up costing you money.

Owners without protective provisions in their agreements are without effective defenses when faced with the prospect of paying for an unwarranted or or costly change orders. They can fall victim to uncertainty about their project and not know how much it will cost until it is done. With cost overruns, the owner often has to accede to the cost, challenge it in some way, or refuse to have the work done – all of which can be costly AND time consuming.

It’s not an isolated issue, 87% of companies report that they had to settle for less than they’d expected in their move to their new workspace, due to budget overages and/or time constraints. It has also been reported that a move for a mid-sized firm ended up costing an additional $36,000 when people tried to manage this unwieldy process on their own.

Your next project doesn’t have to be riddled with overruns or costly change orders if you work with PlaceValue. Not only do we offer a revolutionary way to lease, buy or build industrial and office workplaces, our planning and procurement tools help you get world class workspace for a fraction of the conventional price. And the best part? We accept all of the risks for project outcome – including cost overruns – and deliver as promised.

Whether you stay or move, lease or buy, we make it easy for our clients to decide what’s right, free of vendor pressure and bias. We help you explore multiple planning scenarios and budgeting options, then decide on the best-informed strategy. We also set it up so that you can view complete building models and comprehensive budgets with minimal risk or expense. With our proprietary technology, you’ll gain sophisticated process insights, including velocity, throughput and facility analytics, and comprehensive budget and payback modeling. Get the evidence you need for decision support and cost justification. Experiment with multiple scenarios. When it’s time to implement, PlaceValue will manage the process, warranting the outcome and the delivered price. Bottom line, we’ll handle the details and take the worry out of your project so you can continue focusing on what you do best – your business.

Bring In An Expert

Keeping cost overruns at pay and providing proper project framework is only part what you need to keep in mind while you consider your next commercial or industrial construction project. It makes sense to have someone working with you, and for you as you reexamine your workplace needs. As a leading independent planning, procurement and project management firm, PlaceValue helps our clients realize today’s high performance, adaptable work place, objectively and without bias. By aligning business workplace design with business strategy, managing the supply chain for maximum value, integrating project delivery, and leveraging our buying clout, we bring our clients immediate cost savings and long-term return on workplace investment. Our independence, world class process and pricing transparency, ensure the best possible outcome for your new workspace. And, our fees usually come from the demonstrated savings! Call us to schedule your free consultation today.

 

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