07 Oct How DDD’s Efficient, Collaborative Process Can Speed Up Your Project
As we’ve established in our Design-Build article series, one of the most important advantages of the Design-Build model (and in our case, Design-Build-Maintain) method is that the streamlining of processes can significantly shorten the project’s timeline, creating a huge efficiency in costs. Time is one of the main metrics owners use to gauge the success of projects, and markets move faster every day, time is of the essence. Saving time creates benefits with ripple effects for owners, whether that comes in the form of reduced costs, additional capacity, or new opportunities. Conversely, serious costs accompany blown deadlines – and range from human resources expenses to losing scheduled marketing opportunities, to sale and option incentives, and more. When a building isn’t ready on time, labor, and opportunity costs soar, while finishing early can afford every party a wealth of new opportunities.
As one of Puerto Rico’s foremost Design-Build firms, providing informed assessments for Architecture and Design as well as diverse construction needs in Puerto Rico, DDD has a proven track of success with clients thanks to our holistic and integrated approach. Through this vast experience, we’ve learned first hand that getting to market faster creates advantages for firms of all shapes and sizes—from local small businesses to established global brands looking to expand their presence on the Island and focused on growing market share or seeking to operate more efficiently. Consider these benefits:
- Reduced capital expenditure – Likely the most basic advantage of early completion is cost savings. While fixed costs won’t change (such as the price of cement, for example), variable costs associated with the duration of a project tend to decrease as duration decreases.
- Reduce costs or inefficiencies – The need to reduce costs or process inefficiencies also motivates firms to build; the dynamic is like the one described above. Early completion displaces high costs and inefficient processes sooner than projected, usually resulting in decreased short-term costs.
Risk management factors impacting early delivery
We must note that the benefits of finishing construction ahead of schedule are potential but not always guaranteed. Firms wishing to leverage speed to market opportunities must plan ahead to address these common challenges:
- Existing contractual obligations – Some firms build new facilities so that they can leave old ones. Those that lease existing spaces often time construction to coincide with the expiration of a lease agreement. If the project is finished early, leaders must decide whether canceling that lease (and incurring a penalty) to get into the new space makes more fiscal sense than the continued occupation of the leased property.
- Operating costs – Many owners try to keep the cost of moving down by precisely timing the transition from an old facility to a new one. But what if the construction of the new facility is finished two months early? Are owners willing to eat the upkeep costs of a structure they’re not using? Are they flexible enough to change plans quickly or make the transition in logical phases? Luckily, the Management Consulting team at DDD can help mitigate any inadequacies in the process and provide for smooth transitions for all parties. Learn more.
For building owners and project managers, timing can quickly get complicated in the project, but we are experts at managing and leveraging numerous opportunities that rely on this delicate variable, with the robust expertise of more than two decades of successful projects.