Construction is one of the most significant drivers of the United States economy. Some $1.4 trillion worth of structures are constructed each year, and the industry has more than 745,000 employers.
All those employers and projects put some 7.6 million people to work daily in this country. With all this economic activity, you are not the first person to start a construction project, and you won’t be the last.
But how to start a construction project if you are new to the industry. Well, in most cases, you are not. Most people who start a construction project have some experience in the business, but that doesn’t mean they don’t need help with the process.
Filing a construction plan and securing financing options are part of the process.
In the following article, we’ll discuss planning tips to start a construction project and some ways to stay on task.
Create a Plan
Start with a clear vision of what you want to accomplish and if your property can accommodate your wishes. Builders get into trouble when they don’t plan and investigate enough on the front end and have to make changes later in the process. This costs material, manhours, and permitting resources.
Survey your property and ensure that your construction project’s schematics fit with its intended use. Ask experts in the field or architects for advice to ensure that you are not over or under building. This will help make your vision a reality.
As part of your detailed plans, create a realistic timeline. If you have worries or concerns about how long something will take, plan for a more extended period. It’s always great to beat your timeline, and it can be frustrating when things take longer than expected.
Remember, you’ll need these detailed plans to get the proper permits from your local municipality and get started.
Accurately Budget Your Construction Project
Your budget should be as realistic as you can make it. Nevertheless, you should plan for some cost overruns, especially since material and fuel costs can vary wildly with supply and demand.
A sensible budget and plan are two of the most important things lenders will look at when you secure financing for your construction project, so making sure you have enough resources to finish the project is vital.
Also, have a look at some construction spec loans.
That said, you don’t want your project to be underfunded or bloated with money that doesn’t reflect your project’s value.
Carefully Pick Your Contractor
Don’t rush choosing your builder! Your contractor should have impeccable references. Furthermore, when you speak to these references, ask to tour the project the contractor built for them and ask how the contractor’s bid matched the client’s budget and timeline.
If you have already put the proper research into your schematics, budget, and timeline, then you should know if a contractor can get the project done on your terms.
If you can’t find a reliable contractor that fits your needs, then you know there’s a problem with your prior efforts. Don’t rush the process and choose an unreliable contractor just because it works with your research and budget.
Failure to secure a contractor that fits your budget or timeline could be a significant red flag in your planning process.
Equipment and Material
Your schematics and plans should detail the exact amount of material and equipment you’ll need. Then, find reliable sources for this equipment and get guarantees that it will be on the job site when you need it.
Not having the equipment or material you need when you need it can set your project back weeks or months.
Are You Ready to Get Started?
Now that you’ve adequately planned your construction project be prepared to spend as much time on the job site as possible. One of the best ways to ensure that your plan, budget, and timeline are being adhered to is to keep a close eye on all the project’s participants.
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