Construction costs increased more than 5% last year, and they will likely climb again this year with pressure from tariffs and the ongoing labor shortage. Developers are looking for ways to curb costs in other ways to offset the rising prices. As construction costs continue to increase, developers can benefits from better pre-construction planning and scheduling.

“In the rising cost environment, today’s developers can deeply benefit from utilizing pre-construction services, which involve planning and scheduling, identifying potential problems, scope of project, estimating costs, and analyzing project needs,” Richard Lara, president and CEO of RAAM Construction, tells “This is a service our firm conducts regularly, especially in the affordable housing sector, and it can be a game changer for developers, who understand that it’s essential to keep costs down without sacrificing quality.”

The pre-construction stage is the ideal time to make decisions that can have a significant impact on costs without sacrificing quality. Specifically, this means consulting a full team as early as possible. “At this stage, we can value engineer the entire project before any permitting or approval processes begin. This is essential to avoiding ancillary costs that can come from design changes down the road,” says Lara. “By bringing in a contractor before presenting the project for approvals, developers can better understand what will and won’t work from the start, ultimately saving a tremendous amount of time and money.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.