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How Will I Save Money by Writing a Scope Statement?



This is the crux of most, if not all construction projects.


The reality is that most people will estimate the cost of the job in their head based on many parameters, and this will be inaccurate. In most cases, horribly so. No one is ‘saving’ anything when this happens.


For example, some people might think that the effort required to demolish a bathroom means that it can be done in one (1) day and they can do it themselves. The reality is that it will most likely take two (2) seasoned professionals up to three (3) full days to get it ready for construction.


The biggest cost on any construction project is the labour component. Underestimating how long something takes is usually where the blowouts occur, just like the example above.


However, if you write a scope and corresponding estimate, what you will do is get closer to the real cost of the project. So, the exercise realigns the client/owner’s mind to where it should have been in the first place. Now we’re better placed to ‘save’ money as the true baseline for the job has been established.


Once this has been achieved, the client/owner is able to review the project estimate with their funds available and make some informed decisions, much like wanting champagne but only having enough money for beer. In most cases, they will have to compromise and look for value engineering options with their suppliers. Now you’re starting to ‘save’ money – nothing wrong with that.