How Early Contractor Involvement (ECI) Reduces Construction Costs

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Explore how efficiently Early Contractor Involvement contributes towards lower construction expenses through efficient planning right from the start.

Early Contractor Involvement  leads to countless favorable possibilities. Not only will it make the process faster, but it also ensures that overspending is avoided. Along with the prevention of costly headaches, this helps you achieve what you have planned a lot quicker.

Early Contractor Involvement Overview

This concept means that a contractor is brought into a project in the initial phases of construction. This can either be the planning or designing phase of a project. In contrast to that, the conventional construction way is that designing and planning are done, and then a contractor is involved. This is called the design-bid-build process, wherein an architect works on the design, and then a contractor is hired.

What does it lead to?

Building from the above, engaging a contractor from the early stages of construction results in more value decisions from day one. In other words, a contractor working alongside architects, engineers, and estimators can obviously generate more effective decisions right from the start.Now, to come to the topic at hand, let us tell you how ECI can assist in making the best and economical decisions.

The Impact of Early Contractor Involvement on  Construction

Here is how ECI can improve better and more cost-effective solutions.

Streamlined Design

A contractor can bring practical expertise in the design process, which a designer may lack. Based on that, they can analyze which can identify complex design elements and suggest less costly alternatives.For instance, a contractor may identify a more efficient solution for an MEP system without compromising quality. Thus, yielding a more affordable solution with the same results.

Diligent Resources Selection

Having a contractor in the initial stages enables an ideal selection of construction resources. It can be said that ECI can lead to efficient and more effective Construction Material Takeoff Services.

 

A contractor has ample knowledge of the market conditions and labour availability. This knowledge can help them recommend alternatives during the design phase.

Contextual Value Engineering

Value engineering is a concept that can happen at any time during a construction project. Building on that, a contractor can efficiently utilize this concept most creatively.For instance, if a contractor is involved in the early stages, they can effectively provide more productive solutions. These solutions can be related to construction design, structural framework, or MEP systems of a building.

Improved Estimation Accuracy

From the above discussion, it is clear that a contractor has sufficient knowledge about prices and the ups and downs of the market. On top of that, a contractor knows what construction method is suitable for which project.This means that involving a contractor in the early stages leads to far reliable Construction Cost Estimation. This leads to realistic budget creation and better control over costs.

Proactive Risk Assessment

A contractor, because of their expertise, can help a great deal in identifying any potential risks. Practical risks that are often overlooked by a design team may be pointed out by a contractor if involved in the early stages.This means that rather than spending a notable amount for rectifying a risk, ECI will help in devising proactive risk mitigating strategies. 

Design Validation

Continuing the above, a contractor can efficiently validate a design. They do so by evaluating a design's practicality. For this evaluation, they analyze the construction drawings, and if a contractor is involved in the designing process, this leads to an easily buildable design.On the contrary, if a design is finalized and then the contractor is involved, this can lead to change orders.

Fewer Change Orders

Change orders are mostly associated with the design of a construction project. Other than this, there can also be unforeseen construction conditions, or lack of coordination.The involvement of the contractor in the initial design phase ensures an achievable design is created, as discussed earlier. In addition, they make sure all stakeholders understand the final design. There can be some variations, but the effect on the cost will not be as significant.

Problem Solving Environment

Involvement of a contractor right from the initial phases of construction will foster a more collaborative working environment. This is because a contractor ensures the creation of a practical design by keeping all the professionals in the loop.This collaborative approach reduces claims or disputes, and at the same time focuses on an efficient and productive project delivery.

End Note

In the end, Early Contractor Involvement offers a plethora of advantages. As mentioned in this article, having a contractor in the planning stages of construction can give rise to various cost saving opportunities. But, it is important to mention that involving a contractor is not suitable for all projects. For example, if a project is just to renovate a room, involving a contractor may have adverse effects. Furthermore, collaboration is necessary when it is decided to involve a contractor. This is because a contractor working with an estimator will ensure that the finances of a construction project are applied efficiently in all aspects. Thus, for definitive control over costs throughout a construction project, go with SMA MEP Estimate.

 

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