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

“In the rising cost environment, today's developers can deeplybenefit from utilizing pre-construction services, which involveplanning and scheduling, identifying potential problems, scope ofproject, estimating costs, and analyzing project needs,”Richard Lara, president and CEO of RAAMConstruction, tells GlobeSt.com. “This is a service ourfirm conducts regularly, especially in the affordable housingsector, and it can be a game changer for developers, who understandthat it's essential to keep costs down without sacrificingquality.”

The pre-construction stage is the ideal time to make decisionsthat can have a significant impact on costs without sacrificingquality. Specifically, this means consulting a full team as earlyas possible. “At this stage, we can value engineer the entireproject before any permitting or approval processes begin. This isessential to avoiding ancillary costs that can come from designchanges down the road,” says Lara. “By bringing in a contractorbefore presenting the project for approvals, developers can betterunderstand what will and won't work from the start, ultimatelysaving a tremendous amount of time and money.”

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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 GlobeSt.com 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.