What does the customer want? What does the customer need? Will it fit into the budget? Analyzing budget and what a customer wants to spend is always a conversation. It starts with pricing estimation.
Pricing estimation is establishing the investment total based on timeline, materials, and labor. It accounts for soft costs. Once the budget estimation is established, signatures are required to move forward.
Pricing estimation done by our pre-construction team includes:
- Determining where and how the money is spent.
- Identifying redundancies and opportunities for cost savings
- Soliciting trade and supplier input
- Staying attuned to the supply chain for product availability
How Progressive Budgeting Works
At Formcraft, we use progressive budgeting, which is designed to give real-time feedback to design on any hurdles that came up in pre-construction and vice versa. Progressive budgeting is done weekly and at every design presentation, the pre-construction team will provide the corresponding updated cost plan reflecting the current design renderings and options being presented. This proactive approach is much different than the traditional reactive approach and allows our clients to make informed decisions and keeps the project on schedule.
Another budgeting item that falls under our construction management team is managing the engineer, which is key for accurate and conservative cost planning. Formcraft’s team works closely with the engineer to ensure the specifications are correct and that the design is not “over specified”, which would add unnecessary cost, and possibly time, to the project.
Establishing a Timeline for Construction
The Project Roadmap includes everything discussed as well as milestones and places where the customer needs to be involved. This roadmap helps the team plan the level of interaction needed between the customer and Formcraft.
Here are a few things the timeline for office construction includes:
- Jobsite preparation
- Zoning and licensing (when necessary)
- Legal agreement and signatures (Lease Expiration / Move In)
- Breaking ground / Initiating construction
- Workforce displacement coordination
- Finalizing construction (Fit out)
A pre-construction manager or project manager, would use the Project Roadmap to keep track of milestones and keep everyone on schedule.
Tenant Improvement Allowance (TIA) Budget for Lessees
We can work with your structured tenant improvement allowance. If you have full TIA coverage for construction or partial TIA coverage for construction, we’ll know that right away. We can offer conceptual design for helping identify out of pocket budget aside from the TIA. The last thing we want you to do is waste time and money on things you can’t afford and we can’t build.
Learn more about TIAs