Capital, construction and tenant improvement projects involve numerous evolving and shifting factors, making good cost tracking practices essential to accurately monitor project spend against the budget. But smart property owners and managers know that job financials can also be one of the best places to uncover early warning signs that a CRE project might be in jeopardy.
Here are five problems that your cost tracking report can expose, if it is thorough and kept current.
1. YOUR PROJECT IS LATE GETTING STARTED
Comparing the amount of funds that you have contractually committed to your vendors against your forecast amount will show if real progress is underway—or if it isn’t. For example, if your job was scheduled to start construction last month, but only 15% of the budget has been committed, there’s a good chance that the vendor selection process took longer than expected and project kickoff was delayed.