Understanding Overcharging in the Construction Industry and how to save money.

If you are planning to build, in the planning stages, in the construction process, or currently building, you should read this book!
With over three decades of experience in commercial construction, I have acquired extensive expertise in estimating, building, budgeting, and field operations, in the office and on-site settings. Throughout my career, I have completed projects across various sectors, including banking, retail, warehousing, cinema, dining, car rental, education, infrastructure, restaurants, roads, highways, bridges, and churches.

This diverse experience has given me unique insights into the challenges and opportunities within the construction industry, particularly in the context of church construction. My focus is for the church to be treated with the respect it deserves, acknowledging its significance and rightful ownership, especially regarding fair market pricing.

Unnecessary change orders can significantly inflate project costs and strain church budgets. Proper management and oversight are essential to minimize these impacts.

The issue of unnecessary change orders is a significant concern in church construction projects. Change orders involve making modifications to the original project scope, often leading to increased costs and extended timelines. While some change orders are essential, others can be avoided with careful planning and foresight.

Change orders have various types and causes, including design changes, scope creep, and errors and omissions in the original plans or specifications. Additionally, miscommunication and contractor manipulation can contribute to unnecessary change orders. Poor communication between the church and contractors can lead to misunderstandings, and some contractors may take advantage of change orders to increase their profits.

The financial impact of unnecessary change orders on church projects is substantial, as they can significantly inflate project costs and strain church budgets. Therefore, it is crucial to have proper management and oversight to minimize these impacts.

Pre-construction Planning and Due Diligence

Before starting any construction project, it is essential to focus on comprehensive planning and thorough due diligence. This involves a detailed examination of all aspects of the project, from site selection and design to budgeting and scheduling. By doing so, potential challenges and risks can be identified and addressed early on, preventing costly delays and issues later. This careful preparation lays a solid foundation for the project's success, ensuring that it proceeds smoothly and efficiently.
Common Areas of Overcharging

• The site work is quite complex for an inexperienced client, and rightfully so, as it is a complicated part of the job. Site work typically involves, but is not limited to, clearing trees, excavating, grading, installing water and sewer systems, building detention and retention ponds, installing stormwater systems, and sometimes putting in hydrants and water lines.
• Labor Costs: Charging higher than market rates for labor.
• Material Costs: Marking up the cost of materials beyond reasonable margins.
• "Project Delays: Extended timelines and delays can lead to increased costs. A clear schedule and budget are essential for staying on track and completing the project on time. The schedule will help you monitor progress throughout the construction process and avoid unexpected delays."

These resources offer comprehensive guidance on various aspects of church construction, from planning and budgeting to project management and execution. By exploring these materials, church leaders and project managers can gain valuable insights and knowledge to ensure the successful completion of their building projects.