In the “Beyond Estimation Market Outlook – Third Quarter 2016,” several interesting findings highlight why the construction industry is continuing to grow in profits despite flat dollar volume.
An Interview with James Vermeulen, Managing Principal, Construction Economist at Vermeulens, commercial construction cost estimators. James discusses the Vermeulens Beyond Estimation Construction Market Outlook and outlines issues that affect construction escalation in Q2 – 2016.
Zachary C. Bergeron a Senior Project Manager, and Construction Economist at Vermeulens commercial construction cost estimators discusses the key ingredients of a worthwhile reconciliation.
Modern building philosophy and construction practices have changed a lot in just the last 30 years alone. In addition to new technologies and materials giving us more building possibilities, the way we think about our buildings and how we construct them has also changed. Throughout most of human civilization, the only limitation we have traditionally given ourselves when it comes to a building project was cost. In the 21st century, what matters far more than the initial cost of a creating a building is its overall impact; how much material will it take? What kind of material will it use? How will these materials and the presence of this building affect the immediate environment? What kind of energy expenditure will this building have on the current power grid? All these questions and more show a growing concern for what is referred to as “green” or sustainable building. But what exactly is this philosophy? Building Responsibly Sustainable building is an acknowledgement by designer
Planning any big building project is something that can take a lot of time, money, and effort. Anyone who goes through the process will obviously have one clear goal in mind – creating the finished project that they truly feel they deserve. However, it’s not an easy process and those who are serious about designing and creating truly impressive buildings or developments need to have all the help they can get. One important tool is the use of construction cost estimating consultants in the early stages of the planning process. Once that a basic plan has been developed – blueprints, basic landscaping plans, etc. – the next stage is preparing to move ahead with the project. But if you fail to use construction cost consultants, you’re essentially moving forwards blind. These consultants can help you in numerous ways, and if you want to enhance the potential of your project and improve it in the best way possible, here are some of the ways they can help. The most obvious way is b
Whether you are a contractor, an independent builder or someone else who plans to begin a construction project, having an accurate estimate of the project’s costs is essential for many reasons. Your investors or the lending institution may need this information to determine whether or not to lend you money or make the investment. You can also use it to know how much to charge for your work so that you can earn a living and cover your own costs. Consider these benefits of having a professional perform construction cost estimating services for your next project.
Costs of Permits and Inspections
When you use a professional for pre-construction cost estimation, the professional should be able to give you some initial information about common fixed fees like building permits and site inspections.
In starting up a new business or branching out, a proprietor will have to deal with construction costs. This is something that can acquire a huge part on his or her budget. It is only appropriate therefore, that this stage be given more than enough attention to prevent unnecessary expenditures due to poor planning.
Rundown of a Construction Project
Every project started begins with the identification of project specifications. The size and quality of the facility and requirements of the project has to be addressed. At this early stage, preliminary cost estimates can be made.
After this, the cost benefit analysis, whether formal or informal will follow through. In reality, this practice is not often done that leads to problems that will not be revealed in time to be discussed in project planning. Cost benefit analysis reveals whether the project will be feasible or will generate return of investment.
Taking a construction project from vision to completion is a complex and demanding process. Securing top-quality pre-construction services is one of the keys to seeing a project through on budget and on time.
The best pre-construction services steer projects through every step of the design and construction process, from initial programming through contract documents, cost estimates, reconciliation of scope to budget, and bid review. All of these components are important, but one of the most essential functions pre-construction specialist firms provide is that of an accurate construction cost estimator, charged with developing the cost information necessary to make budgetary and feasibility determinations.
The country’s commercial real estate market is finally recovering from the massive global recession. Unfortunately, favorable development comes at a price for commercial land owners.
Construction Costs Are on the Rise
According to a Puget Sound Business Journal article, construction costs are rising in many parts of the U.S. Puget Sound in particular, is experiencing a 5 percent increase in cost to build office buildings, apartment high-rises, and other huge commercial projects compared to last year. The costs are expected to increase by as much as 6 percent more in the following months.
General contractor Mortenson Development Inc. released a quarterly construction index report showing that the rising cost of commercial construction in the Puget Sound region is outperforming other Mortenson markets including Phoenix, Minneapolis, Milwaukee, Denver, and Chicago. The company said that this has been the consistent trend for the last four quarters.