As the construction industry becomes increasingly more complex with accelerated schedules, labor shortages, material costs increasing, and continued supply chain issues – owners and developers are finding the preconstruction phrase is more important than ever.
To avoid costly mistakes and mitigate risk–owners, developers and contractors must agree on budget and schedules to effectively complete these crucial phases of the preconstruction project:
- Bid package control
- Facilitate bidding process (competitive or negotiated) with contractor recommendations
- Facilitate value-engineering process
- Contract recommendation and consulting
- Execution of the contract
Key to meeting the demands of preconstruction to set a project up for success is the synergy of expertise and technology:
Industry Expertise:
The success of preconstruction lies in the people involved. It is about bringing together a team of professionals with shared goals and objectives who not only understand the intricacies of the construction business but can also collaborate effectively to transform a vision into a tangible result. This means having individuals who not only possess industry expertise but can communicate and cooperate seamlessly to ensure a project’s success.
Accurate Estimates:
A significant challenge in the preconstruction phase is the generation of reliable and accurate estimates. The process of getting a contract right is typically undervalued. The biggest issue with estimates is that they are submitted in different languages, which makes it difficult to make a direct comparison. Often work is included that should not be or other work is left out.
The process of bid leveling can save you considerable time and money and help you determine which bid offers the best price while fulfilling all the project requirements. It is a form of risk mitigation and fiscal management that includes detailed itemization to organize bids, questioning the differences in bids, and holding scope meetings to break down and compare.
The crucial task of obtaining accurate estimates is often hampered by the lack of a centralized database for informed budget numbers which can lead to delays and inconsistencies in the decision-making process. Expedite the bidding process by investing in streamlined systems and tools that enable efficient data gathering and analysis. The central hub of project data simplifies information sharing, decision making and progress tracking.
Every construction project has unique challenges, and different types of contracts lend themselves to various situations. Execution of the right contract is an important part of preconstruction, since contracts directly affect expenses, revenue, and profit. Regardless of the type of contract you work under, take care to read the terms and conditions carefully with construction attorneys to protect the owner.
Alignment of Stakeholders:
Effective communication and collaboration among key stakeholders – including general contractors, subcontractors, architects, and owners, are indispensable for the success of preconstruction. Project goals should be clearly defined as well as the responsibilities and expectations of each stakeholder. The coordination of efforts and the alignment of objectives are critical to ensuring a project progresses smoothly from the planning stage to execution.
Technology Solutions:
AI technology advancements have the power to revolutionize data analysis, budgeting, and decision-making processes in the preconstruction phase. Leveraging software and data-driven tools can enhance efficiency and effectiveness enabling teams to focus on the critical aspects of their work.
5D BIM simulation is one example that provides a more connected, efficient, and visualized building process and drastically reduces cycle times. Construction site drones and sensors are another that acquire data and take images/videos of the site’s condition. With building data like this, AI can use simulations to suggest ways to make structures safer, designs better for energy use and air quality, and mitigate the risk of rework.
In summary, the future of preconstruction involves recognizing the vital role of stakeholders, the value of accurate estimates, investing in streamline systems and tools, execution of the right contact, and embracing AI technology. This strategic combination leads to efficient data collection, improved collaboration, and more predictable and prosperous projects in the ever-evolving construction industry.
