Insights | 08th Aug 2022
How to Tackle Preconstruction in a Volatile Market
Preconstruction is at the forefront of everyone’s minds these days. Preconstruction sets the foundation for a successful project, and never is this more important than in today’s ever-changing market. I see it as our duty at Haselden Construction to provide clients with the knowledge to make informed decisions to begin construction and the confidence to see a project through to completion.
With news of inflation, material availability, and lead times, it can create a sense of panic. Despite these fears, we are still seeing a strong outlook for the rest of the year. Projects have continued to break ground and releases for new bids, especially in higher education, healthcare, and biosiences, indicate promising growth. Investor-led projects have also continued to break ground signaling the Denver lease market remains strong. While this growth comes with some challenges around rising commodity costs and supply chain issues, there are ways to mitigate disruption from the current market volatility.
Our preconstruction team has four tips to help you consider construction opportunities throughout the remainder of 2022 and into 2023.
- Look for cost certainty. Supply chain is still an issue and not expected to stabilize until sometime in 2023, but the right preconstruction team can serve as a trusted advisor to help you get the most for your budget. A great preconstruction team strives to provide cost certainty to its clients. Cost certainty is not price stability. It is the knowledge that the price quoted is as close to the current market value as possible. A great team achieves this by paying attention to the details.
- Have a collaborative team. Pricing can only be accurate if the building is constructable. Make sure your preconstruction team is in lockstep with the architect to ensure that final pricing reflects the building as it is fully constructable. When there is a gap in the plan, it is our job to seek out why that decision was made and the best way to fill it in. When there are no missing elements, clients can be confident there are no surprises later.
- Knowledge is power but communication is key. As we have learned more about operating in this volatile market, our preconstruction approach has adapted. We dive deeper into historical data, cost information and lead times to build a full understanding of their impacts on the project so we can plan for any disruptions far before breaking ground. Our team becomes the expert on your building, and we utilize this knowledge to help our clients take advantage of the market. As we receive information on cost or lead time fluctuations, we inform the client as soon as possible.
- Demand transparency. Trust and transparency are imperative to successfully building in this market. It is preconstruction’s job to develop and build relationships with the architect and client throughout the process, so you know we have the project’s success at heart. When it comes time to purchase material or lock in a certain trade, you should have confidence that we’ve done our homework, negotiated with suppliers, and are presenting you with accurate and best-value options.
Whether you’re in the midst of preconstruction or simply thinking ahead, make sure you’re working with a team who’s hitting these cylinders. Considering a project or want to learn more about Haselden Construction’s preconstruction services, please reach out.
Christian Ekstrom, Vice President of Preconstruction