These days, it’s more important than ever to embrace construction strategies and practices that provide greater financial transparency and control.
“Cost overruns are common concerns on most renovation and construction projects,” reports Lenore Smith, client care manager for Honolulu design/build firm Graham Builders. “The average cost overrun is 15% to 28% of the original budget. And unfortunately, about 32% of construction cost overruns are due to overly-optimistic estimates, especially with remodels.”
Estimators for value engineering
Whether you’re considering design/build or traditional design-bid-build construction for your project, Smith says it’s a good idea to make sure your due diligence includes a review of how companies manage change orders and unforeseen conditions.
“Look for an honest, ethical firm that will provide realistic projected costs, with an estimator who will help you value-engineer your project,” she recommends. “They should help you design your home to suit your budget. Their documentation should be well-written and easy to comprehend, with clearly defined payments and change order policies.”
Design/build methodology offers framework for a highly collaborative, integrated approach to every new build or renovation project. “Thanks to communication, teamwork, and creative problem-solving, we can deliver better, more accurate cost estimation, value engineering, and proactive budget management to our clients,” says Smith.
Testimonials and reviews
For an excellent indicator of any company’s ability to help you avoid cost overruns, it’s helpful to check out reviews from clients who have first-hand experience with them.
“Picking out our fixtures and electrical products prior to the build really helped us with sticking to [our] budget,” says one client. “Graham Builders pushed us to look for things we liked during the design process, and that helped when it came time to shop for fixtures and electrical products. The vendors were able to give us an idea of the cost of the items and suggest items in our price range.” ”
“As an architect, I believe the design-build collaboration with Graham Builders’ team resulted in a better (and faster) product than if I had produced the construction drawings myself and then put them out to bid,” says another client. “I developed an initial floor plan and was able to work with them to value-engineer and right-size the design to fit our budget. We greatly enjoy living here, and only wish we had done it sooner!”
Founded in 1990, Graham Builders remains the only contractor in Hawaii honored by the Better Business Bureau’s Torch Award for Business Ethics. Plan your dream home with Graham Builders’ FREE “Building Your Home for Life” seminar on Saturday May 3rd,from 9- 11a.m. Register at grahambuilders.com or call 808/593-2808.