What to do to reduce price variability
In our previous post we discussed how Natural variability in price causes price discrepancies between each project. In this article we will be discussing how you would go about reducing price variability between your construction projects.
1. Plan as comprehensively as possible
The more you can understand the price implications of different decisions the better, this involves getting information from designers, builders, and other industry professionals. Frankly, it is not a simple task but the more you do the more likely you are to get the result you want. Of course you can pass on some of this responsibility to your interior designer, architect or builder or instruct a project manager. All these options are good, they will simply come with an additional cost and perhaps some particular leanings.
2. Create a complete and accurate brief
A detailed and consistent description of the work is essential for all parties to be able to work effectively together.
3. Ensure detailed specifications
Create a list with materials researched and priced and avoid unnecessary variability.
4. Research suitable companies
Good matches in terms of size and spec of project will narrow the range and increase the level of appropriate advice.
5. Ensure comparable quotes
Use an itemised Excel document to ensure like for like comparison.
6. When negotiating, think about what’s in it for them
Builders do not purposefully price high to catch people out. They price what they think is appropriate. It may be sensible for them to round up rather than down initially so you can keep an eye out for that. But even in the act of quoting you may be changing the scope so just help them out.
7. Keep clear records
During the process and even as the project progresses prices and specifications will change, clear records will ensure consistency and avoid disputes.
– People aren’t out to get you, construction prices are naturally variable
– Price has certain key components, all of which you can control
– Negotiation is a tiny fraction of the overall variability, a clear scope is much more important
Therefore preparation is the best way to find a certain and appropriate price.
And, use BuildPartner 🙂