The cost of materials in the construction industry has been on the rise since 2021. According to the BCIS Materials Cost Index, the cost of construction materials reached a 40-year high in the previous year. This inflation is being driven by the shortage of various materials caused as a result of disruptions and restrictions. While shortages seem to be easing in 2022, certain materials like timber, steel and roofing products are still hard to come by. This causes major problems for architects and other stakeholders.
In order to deal with rising prices, here are six tips to help you manage your budget and improve your output in 2022:
Understand Stakeholders’ Requirements and Set Realistic Expectations Based on Them
Budget overruns are a nightmare for everyone. In order to set realistic expectations and avoid problems, it is important to understand stakeholder requirements and needs right at the beginning of the project. Setting aside time to go deep and identify their goals and expectations properly will help you reduce unnecessary back and forth and help you be more productive. Doing so will also help you set realistic expectations for the project. It is a crucial step for any project and should be completed before setting the budget. Being clear from the start will help you create a more accurate budget, help you set realistic expectations for your stakeholders and reduce risk of budget overruns.
Be Aware of Changing Circumstances
While creating the budget for any project, you need to understand that things are constantly changing. Consequently, your budget needs to leave room for unexpected changes in prices and delays of various kinds. In order to get a clear idea of these changing circumstances, it is good to get input from all the stakeholders involved in the project. This will ensure that you are well prepared to deal with such unforeseen circumstances. Some factors that need to be accounted for include shortages, currency exchange, inflation, cost and availability of labour, financing, etc.
Taking all these factors into consideration and getting input from your stakeholders will ensure that you create a more realistic budget. Doing so reduces the risk of budget overruns.
Understand Where to Save and Where to Splurge
There are various innovations in the industry, like the easy-to-install, quality decking solutions at MyDek, that can help you save time and money on your projects. For example, pre-fabricated balconies save you time and reduce the amount of raw materials required for your project. Identify where you can save so that you can make up for the rising costs and shortages in the market. Identifying new suppliers can also help you reduce shortages and delays and get things running smoothly. By cutting down on other expenses, you will be able to allocate more resources to those raw materials that have been affected by price rises.
Be Transparent with Your Stakeholders
When you identify changes that potentially affect your project, it is essential that you alert all your stakeholders and keep them in the loop on the changes that impact them and the project. Promoting transparency amongst all stakeholders will ensure better collaboration and reduce the back and forth on projects. It also provides for better problem solving and flow of ideas to combat such unexpected situations. Clear and consistent communication is key to increasing productivity and staying on budget.
Timely Reviews and Re-forecasting Where Required
In rapidly changing environments, it is essential to schedule timely reviews to manage the budget and reforecast when required. Such checks will ensure that your budget does not go off track, and if it does, you can find various ways to ensure that it can be corrected. For example, if you realised that there is a 10% budget overrun, you can come up with measures to rectify it or to ensure that it does not get out of hand during the course of the project.
MyDek Helps Specifiers Find the Right Products within their Budget
At MyDek, we understand how difficult it can be for specifiers to find products and materials that fit their budget and requirements. To help make the right decision, we offer specifiers consultations so that the most suitable products are selected for their project. All of our decking solutions are easy to install and are compliant with the latest fire safety regulations; this helps our clients save on labour and time and ensures compliance. We also provide training to help with installing the decking when needed.
Please browse through our product range at MyDek for innovative and easy to install decking solutions for your projects.
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