Tips for Avoiding Costly Mistakes During Construction.
By NEST Uganda
Friends,
Last week, I shared the unfortunate tale of a person who lost two years' worth of savings, amounting to 120 million, meant for building his home (refer to the previous article for context).
This week, NEST Uganda (@nestUgltd), a real estate company with extensive experience in constructing homes for diaspora clients, offers valuable advice on managing the construction process to prevent such distressing outcomes.
When examining this situation, it's tempting to attribute the problem solely to a lack of accountability in construction. While this is partly true, the root cause often stems from inadequate planning, which subsequently leads to accountability issues.
To minimize the risk of future regrets, it's crucial to meticulously plan the entire process, from the design stage to completion, in a manner that promotes accountability.
Design Stage
A successful project cannot emerge from a flawed design. The adage "garbage in, garbage out" applies perfectly here. At the design phase, ensure that your architectural plan encompasses architectural, structural, mechanical, and electrical drawings, as well as the bill of quantities (BOQs). The BOQs will provide cost estimates for each construction phase, from inception to completion, and are indispensable for maintaining accountability.
Plan Review
Before submitting your plan for approval, consult with a reputable engineer or construction company to review it. This step is vital to correct any errors or inconsistencies promptly. Making changes later can compromise the quality of the work.
Financial Plan
Often overlooked, a financial plan is nonetheless critical. Before committing to any action that will tie up significant funds in an incomplete project, sit down with a financial planner to go over your budget. Whether you're considering savings or a loan, this is the moment to evaluate your financing options.
At NEST Uganda, we offer a building fund (Save & Build) that enables our clients to save through a unit trust to finance their projects. However, if a construction loan is necessary, it's usually more economical to secure one towards the end of the project, taking into account market interest rates.
Construction
With a reliable team, particularly an engineer and project manager, and an approved plan, the construction should proceed smoothly and adhere to the established timelines. Ensure that contracts are in place, detailing the scope of work, timelines, responsibilities of the personnel involved, and the expected quality of work.
Project Management
If you're unable to oversee the project yourself, a project manager can act as your proxy. They are responsible for ensuring that your plan is executed accurately, the quality of materials meets the required standards, and that material costs are not inflated.
Remember, any money saved during the planning phase can prevent costs that are tenfold or more later on. As we diligently save every penny for construction, let's not lose years of hard work due to poor planning or placing our trust in the wrong contractor.