Construction Spec Loans

5 Costly Construction Mistakes That Builders Make

VWB Blog 2 years ago 2

A recent survey found that construction delays cost companies up to 20% more than their estimation at the beginning of the project. There are a million things that can go wrong on a project. They can be costly and time-consuming.

All the common mistakes in this article can cause delays to your project if you aren’t careful. If you are about to start a big project keep reading. We are going to go over some construction mistakes that you need to know about in order to be successful.

1. Only Getting One Estimate

Budgeting isn’t the most exciting part of the project but if it’s not done correctly it could stall your construction. It is imperative to get multiple estimates. Don’t let yourself get so anxious and excited to start the project that you skip this step.

This is a common practice in the industry so there is no obligation to go with the first one. You don’t have to hide that you are getting other estimates either.

Your contractor probably expects you to and some will price match on certain projects. Take your time looking over each estimate that you receive and keep an eye out for little costs that may have been missed but will add up quickly.

When getting an estimate from a contractor take into consideration their reputation and experience.  We will talk more about choosing the wrong contractor next. After assessing a few different estimates you’ll be able to find the approximate cost of your project and get your construction spec loans.

2. Using the Wrong Contractor

If you want your project to go as smoothly as possible you’ll need to have a good contractor. Picking an under-qualified or undependable contractor could cause major issues and is one of the most common construction mistakes.

There are a few things you can do in order to avoid this error. First, check if he or she is insured and bonded. Insurance protects you in case there are any on-site injuries. Bonding will protect you if your contractor doesn’t pay subcontractors or does a bad job on the project.

Second, ask around and talk to people who have worked with him/her. They may be a great worker but if they don’t have experience with the type of project you are doing that could cause issues. If your contractor isn’t willing to review and stay within your budget then they aren’t the contractor for you.

3. Forgetting Permits

If you forget or neglect to obtain the proper permits, you’ll more than likely receive a stop-work order from the county or city. This will delay your project and cost you significantly.

These permits don’t usually come quickly so it’s recommended that you get them early so you can start your construction on time. This is where having a good contractor comes in handy.

You can request your contractor be in charge of getting permits and legal documents. He or she will probably be well connected and have contacts in the local government, making it easier for them to obtain the documents needed. It is also important to know that insurance won’t cover any costs or fees if you don’t have the proper permits.

4. Poor Communication

Another one of the construction mistakes we found to be common was poor communication. It might seem like an obvious necessity but it can be overlooked and it will cause problems.

Your contractor will need to not only communicate with you but with the subcontractors. Previously mentioned above, your contractor is in charge of getting the permits they will need to be able to communicate effectively to them too.

This is a skill you will also need to master. If you have questions or concerns the construction team can’t read your mind. Talk to them if you see something that doesn’t look right or if there’s been a mistake.

Before the project even starts you’ll need to explain your expectation. Everyone should be on the same page and if something goes side-ways, which can happen on a large project, everyone will need to be able to talk and fix the errors.

Email is a great way to communicate with your contractor or architect. They can send you pictures to show your progress if you aren’t able to be on site. They will also be able to send you any concerns they might have without calling you.

It’s also a good idea to keep all those emails. If something goes really wrong you’ll need proof for the insurance company.

5. Not Asking for Completion Dates

One of the most frustrating mistakes in construction many people don’t realize until it’s too late. Always ask for a set completion date.

A well-experienced contractor will give himself enough time to complete the project and shouldn’t push the date back multiple times. However, there are expectations to this such as natural disasters and pandemics.

If you can find a contractor who will provide a financial incentive, that would be best. Some will guarantee a completion date and if it changes they will pay you. This will help ease your mind and allow you to plan for the future.

Construction Mistakes

Starting a big construction project can be overwhelming and the entire process can be stressful. However, avoiding these construction mistakes will help you avoid delays and headaches.

Keep in mind communication is key and once your project is done you’ll receive it was all worth it. If you found this article helpful, check out our page for more advice and tips.

Written By