What is the Dollar Value of Speed
By Steve Sudler, CEO of Catalyst
One of the often unrealized benefits of scheduling all your construction projects is increasing the speed of construction. Speed has a real impact on profitability in ways that are obvious and in some ways you might not be aware of.
Fast construction can reduce contractor overhead, insurance cost, equipment rental cost. And, the longer it takes to construct the project, the construction company will incur higher labor, site-overhead and financing cost. Faster construction and resulting lower costs due to improved scheduling practices allows the contractor to make more competitive bids.
The construction client’s financing costs and loss-of-use costs are affected by speed of delivery. Whether it is in service or not, the building is costing money in property taxes, insurance, and possibly financing cost even while it is still under construction. So, the sooner the project “in service”, the sooner it starts off-setting costs and helping the owner to make a return on investment.
As you can see, speed has a real impact on the Contractor’s and Owner’s bottom line. So, when planning your next project, it’s worth considering a rigorous Baseline planning and updating process as more than just a contract requirement. It means making more money, increasing safety and improving customer retention.
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