Peak Construction Group

Balancing Cost, Quality, and Speed

Cost, quality and speed are the three most measured and discussed parameters of any project no matter how big or how small the assignment.

The construction process is a truly an art of combining the technical skills of joining materials, making them work together, and allowing those materials to be useful for a long period of time but also incorporating artistic craftsmanship to make it look and feel appealing.

It is customarily thought that if it is done cheap and fast then the quality will be poor, or if you demand high quality and fast work then the cost will be high. See the attached graphic. As you move towards any one tip of the triangle, you are logically moving away from the other two.  For instance, as you move towards “low cost” you are losing speed and quality. Staying in the “sweet spot” is thought to be the safe option. Everyone has heard the old sayings “you get what you pay for” or “cheaper is not always better” or “l am not interested in a quick and dirty job. I want it done right.” In some cases, these figures of speech cannot be avoided but this model doesn’t have to be the case. Finding the right contractor for the task(s) at hand is the way to a more favorable middle ground.

The key to keeping labor costs down is having an experienced and conscientious team that does respectable work the first time therefore minimizing delays and rework. With experience, quality work should rarely be an issue which essentially removes it from consideration. Quality should be expected.

Experience also translates to speed. As an example, consider the easy undertaking of painting one small wall. The wall could be painted in just a few minutes by any person that simply walks up to the wall and starts painting. There will most certainly be some spills, messy edges and perhaps an uneven finish. Now think about painting the same wall, where an experienced painter does prep work by laying down a drop cloth, tapes the edges and then applies two coats of paint. This painter’s experience also allows him to apply paint at the edges in one smooth, straight motion because he has developed a steady hand over time. The reality is that the painter probably only took a few more minutes upfront than the first person but the outcome will be considerably better.

The important detail here is who the person or company is doing the work. Make sure they are qualified, experienced, staffed appropriately, fully insured and available to do the job in the manner that you want for the price that is acceptable to your project.

Time and the Cost of Lost Opportunity

Would you like to know how to potentially save 100’s of thousands of dollars on your project or bring in that much more in revenue? Consider what is often the most unconsidered -TIME- and learn what I have learned in my last 30 years of construction – do everything possible not to waste it.

If you have land and are committed to a future project upon it, every day not spent wisely is more expense in property taxes and any other associated costs you are absorbing in the present for your future project.

Whether your project is in pre-design, in the design/pre-construction phase or if construction has begun, every day lost is also a day of lost future revenue – what we call “Lost Opportunity Cost”.

For example, if you expect revenue to be $50,000 per month upon your project’s completion and lose one month selecting your design team, three months due to a permit not gained, and another two months selecting a GC… What is the grand tally of this example of which I would say is within the norm and not an extreme case … 6 months in lost opportunity cost or in this example $300,000 in lost revenue!  This does not even account for the extra taxes, interest payments or increased project cost due to this LOST TIME in pre-construction or construction.

How best to mitigate this loss…hire a professional construction management firm to manage the entire process of pre-construction and construction, a single point of contact knowledgeable in all aspects of a project (finance, feasibility, design, value engineering, entitlements such as permitting, construction, furnishing…) to schedule and put all the many pieces and team members involved in a project together. Someone to be held accountable and to hold others accountable for their responsibilities, even the ownership for their responsibilities.

Time truly is money if not factored in and also never underestimate the value of your time.

Contact myself for assistance or advice on your current planned projects no matter the stage or even if it is just conceptual. Depending how far along you are, if you are planning to start in 2018 –NOW IS THE TIME to finalize all planning.

Finance, design, value engineering, permitting, scheduling, construction and furnishing -TURNKEY- we will manage it, we have the right contractors and national vendors and we will build it.

Happy New Year from Peak & may your New Year be both Healthy and Prosperous. We think it can be… if you consider TIME!

We’ve Moved!

Peak Construction Group (PCG) is proud to notify our clients, partners and vendors that our office has moved. We now occupy the 3rd floor of a great 11,000 square foot office building at 1169 Harlem Road, Buffalo NY 14227.

PCG continues to be awarded solid projects, hiring experienced employees and planning for steady growth in this favorable business cycle and geographic location. This new office space gives us the ability to continue to do so for some time.

Come by for a visit anytime.

Team Peak

You only get 2 out of 3…..or do you?

Cost, quality and speed are the three most measured and discussed parameters of any project no matter how big or how small the assignment.

The construction process is a truly an art of combining the technical skills of joining materials, making them work together, and allowing those materials to be useful for a long period of time but also incorporating artistic craftsmanship to make it look and feel appealing.

image004It is customarily thought that if it is done cheap and fast then the quality will be poor or if you demand high quality and fast work then the cost will be high. See the attached graphic. As you move towards any one tip of the triangle, you are logically moving away from the other two.  For instance, as you move towards “low cost” you are losing speed and quality. Staying in the “sweet spot” is thought to be the safe option. Everyone has heard the old sayings “you get what you pay for” or “cheaper is not always better” or “l am not interested in a quick and dirty job. I want it done right.” In some cases these figures of speech cannot be avoided but this model doesn’t have to be the case. Finding the right contractor for the task(s) at hand is the way to a more favorable middle ground.

Cost is strictly a function of time spent. The key to keeping labor costs down is having an experienced and conscientious team that does respectable work the first time therefore minimizing delays and rework. With experience, quality work should rarely be an issue which essentially removes it from consideration. Quality should be expected.

Experience also translates to speed. As an example, consider the easy undertaking of painting one small wall. The wall could be painted in just a few minutes by any person that simply walks up to the wall and starts painting. There will most certainly be some spills, messy edges and perhaps an uneven finish. Now think about painting the same wall, where an experienced painter does prep work by laying down a drop cloth, tapes the edges and then applies two coats of paint. This painter’s experience also allows him to apply paint at the edges in one smooth, straight motion because he has developed a steady hand over time. The reality is that the painter probably only took a few more minutes upfront than the first person but the outcome will be considerably better.

The important detail here is who the person or company is doing the work. Make sure they are qualified, experienced, staffed appropriately, fully insured and available to do the job in the manner that you want for the price that is acceptable to your project.

Welcome to PeakConstructionGroup.com!

We are so glad that you are here!

We’ve worked hard to put together a friendly site that helps you understand who we are and how we can make a difference for your construction project.

Please poke around and certainly reach out to learn how we can save you time and money both before and during construction.

Also, check back to see what we share on this blog. We’ll be taking our experience as construction managers and builders and sharing it here. You’ll learn a lot and it will make your projects more efficient and effective.

Here’s to getting to the top, together!

Team Peak