A view from the Finance Team:
Managing a construction project is a balancing act. Keeping costs under control while ensuring high-quality results is one of the biggest challenges builders & developers face. A project that runs over budget can seriously impact profitability & affordability, but cutting corners to save costs often leads to bigger issues down the line.
At Create, we understand the pressure of delivering high-end developments on time and within budget. We’ve worked with developers who need to maximise value without compromising the final finish. In this guide, I’ll share practical steps to control costs, reduce waste, and avoid costly mistakes while ensuring your project meets the highest standards.
My Top Tip: “Ensure the funding is in place & check the details, if you are a client, run these past your build team for transparency and ensure they understand before proceeding. Most deals fail before starting on site due to expensive funding arrangements.”
1. Start with a Clear and Realistic Budget
A well-planned budget is the foundation of any successful construction project. Without a clear financial roadmap, costs can quickly spiral out of control.
How to Do It:
- Define a detailed budget that includes materials, labor, permits, and an additional 10-15% contingency fund for unforeseen costs.
- Use value engineering to explore cost-effective solutions without sacrificing durability or design.
- Finalise all design specifications before starting construction to avoid expensive mid-project changes.
A carefully structured budget provides the clarity needed to make informed financial decisions at every stage of the build.
2. Work with the Right Suppliers and Contractors
Choosing the cheapest option for materials and labor can seem like an easy way to save money, but it often leads to delays, quality issues, and expensive rework, especially after completion when the building is live so please avoid this mistake. The right team and supply chain partners make all the difference, I can assure you.
How to Do It:
- Vet contractors thoroughly by checking references, reviewing past projects, and ensuring they have a proven track record. Most subbies need quick payments for cashflow, ensure this falls inline with the project funding.
- Build relationships with reliable suppliers to secure competitive pricing on quality materials.
- Negotiate bulk purchase discounts where possible but ensure materials align with project requirements.
A strong network of trusted professionals ensures efficiency and helps keep the project running smoothly.
3. Track Costs and Progress in Real Time
Many projects go over budget simply because costs creep up unnoticed. The key to preventing this is constant tracking and accountability. Use software where possible
How to Do It:
- Use project management software like BuilderTrend to track purchase orders, invoices, and budget adjustments in real time.
- Conduct weekly cost reviews to identify trends and prevent small overruns from becoming major financial issues.
- Ensure subcontractors and suppliers stick to agreed pricing and delivery schedules.
By maintaining clear financial oversight, you can make proactive adjustments before problems arise.
4. Prevent Delays with Proper Scheduling
Delays increase costs. Every additional day on-site leads to higher labor, equipment rental, and administrative expenses. A well-planned timeline is just as important as a well-planned budget.
How to Do It:
- Develop a detailed construction schedule with clear milestones and deadlines.
- Factor in lead times for critical materials to avoid last-minute shortages.
- Have contingency plans in place for key trades in case of unexpected changes.
Weekly progress reviews help keep everything on track and ensure potential disruptions are addressed early.
5. Prioritise Quality to Avoid Expensive Rework
Trying to cut costs by using low-quality materials or unskilled trades people may save money upfront, but rework is far more expensive in the long run. Poor-quality construction leads to defects, delays, and dissatisfied clients. I have lost count of the amount of projects we have had to rescue for new clients due to these errors.
How to Do It:
- Implement strict quality control checks at every stage of the project.
- Work with experienced tradespeople who deliver reliable results the first time.
- Choose durable materials that balance cost efficiency with longevity.
High standards from the outset prevent costly repairs, reduce maintenance issues, and enhance the long-term value of the development.
Final Thoughts
Keeping a construction project on budget without compromising quality isn’t about cutting corners—it’s about taking a strategic approach to planning, execution, and cost control. At Create, we specialise in helping developers deliver high-spec projects efficiently and profitably.
If you’re planning a development and want expert support in managing costs without sacrificing quality, get in touch. We’re here to help you make sure every pound spent adds real value to your project.
Josh Clover
Create Properties Ltd
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