Every construction project should be completed within time and budget to be successful. Both these elements of the given project need extensive planning, and it is here that the construction project manager steps in to do the needful. Many factors determine the costs of a construction project, and the manager should take them into account carefully to create a realistic budget that does not waste time or money.
Kanat Sultanbekov – The project manager needs to determine the costs of the project
Kanat Sultanbekov from New York is an experienced construction manager known for his excellent track record when it comes to completing construction projects in time. He emphasizes quality and brings an alignment between strategic processes, operational practices, and risk management in every project he undertakes. Moreover, he lays ensures all his projects are completed with the highest safety standards in time.
He joined The Harvard Business School and completed the Launching New Ventures Program andthe Economics of Blockchain and Digital Assets Certificate Program at The Wharton School Aresty Institute of Executive Education from Pennsylvania.
Planning for the construction budget
As a project manager, you should take time to plan the project’s budget; this is where your experience will help you. There are multiple methods to save costs, and given the project you have in hand, you should determine which of the methods you know will work the best.
Divide costs – Tangible and intangible
One of the best ways for you to plan your construction budget is to divide the costs between the tangible and the intangible expenses related to the project. The expenses that are not linked to the physical building are the intangible expenses, also known as soft costs. These costs also pertain to the services you might need while constructing the building and generally amount to around 30% of the entire budget.
70% of your budget will include the costs that are directly linked to the construction of the building, road, bridge, etc. You can easily estimate these expenses and control them as well. They are tangible in nature and are fixed in nature.
The intangible costs are the most difficult expenses for you to estimate beforehand, as you do not know how much the service fees are before the work’s commencement. This is the part of the project where you and your whole team need to incorporate measures for cost control.
Professional or service fees have to be considered
Every construction project needs a diverse range of professional services like consulting, approval fees, etc. Some fees might accumulate during the project, and some might have to be paid before the work starts.
According to Kanat Sultanbekov, building projects also need government permits that cost a fee, and sometimes there are other associated expenses to the above for facilitating transactions. For some projects, testing, surveying, and studying fees are involved, so the project manager needs to include them in the budget. The project might also involve environmental and geo technical costs, along with the design services needed for the master plans.