How Smart Builders Cut Costs During Preconstruction

In today’s market, builders are met with longer decision-making timelines and increased scrutiny over budgets before projects are approved, according to John Line, executive vice president with Farmington Hills, Michigan-based Huntington Construction. Last year, CBRE reported that the construction pipeline continued to contract across all property types, estimating that construction costs increased 35 percent since 2020. A J.P. Morgan report from earlier this year states that rising costs, largely fueled by tariffs and trade policy uncertainty, present challenges for commercial real estate. For instance, imported aluminum, copper and steel parts are subject to a 50 percent tariff. “While there’s still a healthy pipeline of opportunities, clients are carefully evaluating scope and costs before breaking ground,” says Line. “As a result, preconstruction and collaboration are more important than ever, and contractors are expected to provide strategic guidance long before construction begins.” Kinjal Patel, president of Chicago-based McHugh Construction, echoes this sentiment. He says success in today’s market depends on disciplined project selection, early planning and closer coordination with clients and trade partners during preconstruction. McHugh has utilized time during slower development cycles over the past few years to strengthen subcontractor relationships, procure long-lead-time materials earlier and leverage emerging technology to improve... The post How Smart Builders Cut Costs During Preconstruction appeared first on REBusinessOnline .