It’s extremely difficult for construction projects to come in under budget. Poor project management may be one reason for the error while unforeseeable circumstances may be another. But one of the most common causes of construction cost overrun is simply underestimating the cost of the project from the beginning.
Faulty schedules and budgets can hamstring a project from the beginning and be one of the root causes of sending your project over budget. Contractors may underestimate the scope of work of the project. Contractors, architects, and owners can express concern about budgets in the RFP process and these concerns should raise red flags from the get go.
It’s up to contractors to accurately gauge what the projects will ultimately entail and spending a little more time and resources at the onset of a project can save much more later. Identify the problems early with the project estimates and costs to save budget space later.
Cost overruns are one of the reasons that contractors must obtain bid, payment, and performance bonds to ensure that they can take on the project at the bid amount, pay for all subcontractors and materials, and perform the project satisfactorily.
Purchase Bid and Payment/Performance bonds
Colonial Surety offers an easy way to get your hands on bid and payment/performance bonds as well as any other surety bonds. Our online portal allows your to quickly get a quote and print your bond in minutes. Contact us today to learn more about