cutting corners on a refurb project

If you are thinking of cutting corners on a refurb project, dont do it it’s a false economy

Anyone involved in property refurbishment projects cannot fail to be  aware of property build cost rises in 2021

This situation is not going to improve anytime soon. And there is a lot of evidence indicating it will get worse

A rise in build costs means a project that may have appeared profitable several months ago. But if it’s planned to start in 3 months time may no longer be worth starting

As well as a rise in build costs there has been a shortage in the availability of construction materials

Procurement problems can lead to delays on a project

Delays introduce risk to a project and delays cost money

Can you cut corners to keep your project profitable?

The answer to this is unequivocally NO

When they try this, two things happen

One of the first things that get sacrificed is safety

Trying to cut safety measures

Anyone involved in the refurbishment of properties for profit is a part of the construction industry

Last year there were 111 people killed. And over 2000 people suffered life changing injuries in the UK construction industry

Safety on a project is NEVER negotiable

Your number 1 priority should always be safety

Safety must ALWAYS come before profit

Before thinking how much profit you are going to make you should be thinking about how to run a safe construction site

Most importantly anyone carrying out a property refurb has a legal duty to comply with safety legislation. That is contained in the HSE CDM Regulations 2015

These are non negotiable and breaches can carry heavy financial penalties or imprisonment

Cutting corners on safety can lead to accidents. And a serious accident can derail or completely close down a project

No developer wants  HSE improvement and prohibition notices served on them

Sacrificing quality

A second thing that gets sacrificed when people cut corners is quality

There can be a temptation to use substandard materials instead of what was in the original specification document

Using a materials compliance register  can prevent the wrong materials being brought onto your project

Quality Assurance can be overlooked. But when this happens you can end up with an inferior finished project which will affect the end value.

On any project one of the main causes of delays and extra expense is poor workmanship

To prevent this happening an Inspection and test plan is the best tool any Project Manager can have

So what is the solution?

Regardless of the current build cost rises or procurement problems, the solution to running a profitable project is the same as it always was

Any project should be run in as professional a manner as possible

There are 3 stages of a construction project. The most crucial is the preconstruction stage. You will make or break any project before it even starts at this stage

It is essential to have the right team

And now more then ever it is vital to have accurate figures. That way  you know what your project will cost you. Nothing should be arbitrary. Trying to calculate refurb costs by the square metre method is not an accurate way to do things

Relationships with the builders working on your project are key.

If you are a competent client you will find good builders are easy to find

You don’t need to try and shave margins off the project cost by making compromises on safety and quality

Instead focus on improving efficiency. And try to reduce waste on your project. Take more care in planning and processes to reduce delays to your project

Dont forget the business plan

Planning, preparation and professionalism will be your best tools in completing a successful project

And don’t forget the actual construction is just one part of a project. Before starting any project it is always advisable to discuss things with a good Accountant. Make sure you are set up in the correct company structure and you are going to achieve maximum tax efficiency

 

If you would like help with any of the above issues please contact us

We offer a wide range of services to assist people with a project of any size

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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