10 CONSTRUCTION MONEY MISTAKES YOU SHOULD AVOID
- Not having a detailed budget: Failure to plan and prepare a detailed budget can lead to unexpected costs and financial difficulties during the construction process.
- Not obtaining multiple quotes: Failing to obtain multiple quotes from different suppliers or contractors can result in paying more than necessary for materials and labor.
- Not having a contingency plan: Not having a contingency plan in place can result in unexpected costs and delays, which can be costly.
- Not having proper insurance: Failure to have the proper insurance can result in financial losses if an accident or other incident occurs on the construction site.
- Not having a clear contract: Not having a clear and detailed contract can lead to misunderstandings and disputes with contractors and suppliers.
- Not having a clear payment schedule: Not having a clear payment schedule can lead to delays in payment and financial issues for both the contractor and homeowner.
- Not having a change order system in place: Not having a change order system in place can lead to unplanned costs and delays.
- Not keeping proper records: Failure to keep proper records can result in difficulties tracking expenses and staying within budget.
- Not having a project manager: Not having a project manager to oversee the project can result in delays and cost overruns.
- Not having a proper schedule: Not having a proper schedule can result in delays and cost overruns, as well as additional costs for overtime and expediting.
By avoiding these common money mistakes, construction projects can be completed on time and within budget. It’s important to have a clear and realistic plan, stick to the budget, and have a good communication with the contractors and other parties involved in the project. Have a proper change order and record keeping process, also consider hiring a professional project manager to oversee the project. Be aware of these common mistakes, can help you to run a successful and profitable construction project.