by
Rachel Ten Eyck
12. August 2010 05:01

It’s every developer’s worst nightmare: material prices have suddenly increased, and your general contractor is unable to finish the project without a budget increase. We’ve all heard horror stories of escalating project costs; maybe you’ve even been in that unfortunate situation yourself as a developer, or a general contractor.
Given the current economic conditions, projects are being built, but under tight budget restrictions. Cost creep can prevent a project from being completed on-time—or at all. It can also affect end-user pricing. Rent or sale prices for apartments and condominiums, room rates for hotels, or student tuition may need to be increased beyond a point that is viable for the market. The bottom line? Projects simply must meet the budget goals established at the beginning of a project.
The unfortunate reality is that many construction companies are unable guarantee their pricing. Mismanagement and inexperience can lead to cost overruns, and many companies are simply unwilling to make a fixed cost guarantee.
This isn’t the case at DeLuxe Building Systems. We’re able to assure our clients of a fixed cost upfront because of our extensive pre-production planning, and our modular construction method. Our project team and estimating department work with established vendors to generate an accurate project quote, insuring that our clients know what the modular portion of their project will cost, before they sign a final contract. This model prevents unforeseen expenses from arising, and change orders become virtually nonexistent.
Additionally, DeLuxe’s structured and controlled method of construction insures that construction materials are properly ordered, and are not wasted. Specific material lists for each modular unit are determined upfront by our Engineering department for Purchasing. During the modular pre-production phase of construction, steel framing is cut precisely to size with state of the art custom equipment; insuring that none is wasted.
In the present economy, funding for new construction is difficult to obtain and maintain; therefore keeping costs under control is a necessity in order to insure a successful and profitable project. The modular construction method combined with DeLuxe’s complete pre-production project planning reduces your risk and fixes your project cost at contract time, making your project costs a sure thing.
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