Construction Cost Management On Your Next Commercial Real Estate Development Project

Construction Cost Management On Your Next Commercial Real Estate Development Project //

Real estate developers have a lot to contend with. Local municipalities and government agencies are constantly changing rules which adds complexity to projects. Consultants, tradesmen, and contractors are harder than ever to manage. Combine that with the fact that projects take longer and cost more money today than at any other time in history, and you have a recipe for major challenges.

Proper construction cost management is one of the most important skills a developer should possess. Managing costs starts during pre-development and project design - an overly designed building is always going to cost more than you budget for. And it continues throughout land entitlement, permitting, construction, and even post-construction.

In this video, we discuss the different kinds of construction costs a developer will see during a project - hard and soft costs or direct and indirect costs. And we highlight some industry best practices for construction cost management as it applies to the various stages of the real estate development process.

Managing construction costs can't be left up to chance. It needs to be an intentional aspect of a well-rounded business plan.

Real estate developers that train in the skill of cost management and hold their project consultants accountable will be much better positioned to win against their competition.

⌛ Timestamps ⌛
0:00 Introduction
1:28 Understanding the different kinds of construction costs
2:27 Managing construction costs during project design
6:00 Construction cost management during development
8:43 Cost management post-construction
9:27 Key takeaways

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