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Over Budget Conditions

Posted By Joe Flemming, FCPE, Friday, January 12, 2018
 
 

Does it seem as though every project you work on is over budget? I don’t care if it is a hard bid or a negotiated budget, I feel that almost every project is over budget and requires a round or two of Value Engineering to move the project to fruition.

 

Are owners and architects living in budgets from the recession and expecting for prices to remain low?  Do they not have a clue what construction costs are and are designing their wish list and waiting for the bid to see if they can afford it?

 

I recently worked on a project that had a prototype built 5 years ago. The program was identical, and the budget was 15% less. Escalation was at least 15% over the last 5 years, which meant they wanted the same thing for 30% less. As I was working with the designers, I asked them if they had ever value engineered 30% on a project.  It is not pretty.

 

Is anyone else seeing the trend that almost every project is over budget?

 

Joe Flemming, FCPE

Certification Committee Chair

Tags:  certification 

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