Real Estate and Construction Financial Management
No business wants their commercial real estate project to suffer delays or overrun its budget. With economic inflation on the rise and the supply chain issues impacting essential materials, you are likely to encounter numerous challenges throughout the course of one project. A shortage of just one material could result in significant delays and drive an increase in cost.
While your project managers can oversee costs of your project, taking the burden of financial management off their list allows them to focus on project safety, operations, and strategic thinking about the critical path.
Our financial managers understand how seemingly simple factors can impact the cost of your project. When executing your project, we consider all of the ways costs may change over time, so we can allocate your business resources accordingly and develop contingency plans. With our support, you find that every penny you put into the project is well-spent.
Construction Financial Management
Every commercial real estate or construction project comes to us with a set budget. As your partner in bringing that project to fruition, our top priority is staying within that budget. Our construction financial management experts oversee your project to ensure we keep costs on-target.
To stay on-budget, we consider the scope of your project and how different factors may impact costs over time, such as the location of your project or the time of year construction takes place. For instance, less work is likely to get done when snow is on the ground, so cold winter months may be slower and less costly overall. We take all of this into consideration as we allocate the budget throughout the course of your project.
At the end of each month, our experts in construction financial management review invoices to ensure the budget spent aligns with what was allocated. During this process, our experts verify that work has been completed. If we discover that costs deviate from the allocated budget, we dig in to understand the reason why and devise solutions to ensure costs remain on-target.
Add an expert in construction financial management to keep your project on time and within budget.
Commercial real estate projects are subject to countless risks. Just one fluctuation in costs can jeopardize the success of a project, and in this volatile economic climate, projects are subject to more curveballs than ever before. With a financial manager on your team, you will be prepared for any challenge that comes your way.
Let’s start with one project.
Why is construction financial management important?
In a commercial real estate project, a single invoice can be anywhere between $10,000 to $1 million. Additionally, each project has many vendors who must be managed and paid. Just a few of the parties involved include:
- General contractors
- Electrical companies
- HVAC companies
Our experts in construction financial management verify these vendors have completed their work within the allocated budget. We also ensure trust is at the forefront of vendor relationships through processing and paying invoices promptly. Prompt service in this area is crucial to maintaining strong vendor relationships, so vendors remain satisfied with our working relationship.
In addition to managing vendor relationships, we predict how costs may change over time and identify solutions to potential challenges as they arise. There are countless factors which can impact the cost of a project, including:
- The project scope
- The location of your project
- The time of year construction takes place
- Fluctuations in pricing on materials, labor, equipment, etc.
- Economic inflation
- Supply chain changes
We consider each of these factors when allocating resources. However, surprises can still happen, especially in our current climate where inflation is high and supply chain issues are more common than not.
That’s why it is essential to have someone experienced in construction financial management on your project team. A fluctuation in price on one material can impact the entire project costs. When this happens, our experts examine all the alternatives available to you. We then present your options to you and make recommendations as to what solution would best work with your project scope and budget.
How is construction financial management different from other businesses?
Our experts in construction financial management play a vital role on your project team. We do not just process invoices or prepare budgets. In fact, construction financial management is much more complex than that. Our experts handle:
- Cash flow management
- Cost projections and cost management
- Financial reporting
- Accounting closeout
- Threat analysis and problem solving
Above all, we provide essential insight into the many factors that impact your project and its budget and devise solutions that allow you to keep costs under control. We anticipate challenges that may threaten the success of your project and identify contingency plans. Additionally, we know where to look for financially viable alternatives when unexpected events impact the cost of your project. .
Ultimately, financial managers play a key role in making decisions and solving problems related to your project. With so many projects underway at the same time, even a stellar contingency plan can fall through. We have the expertise necessary to identify the best alternatives. Moreover, we can deliver a clear analysis of the impact each alternative may have throughout the remainder of the project. That way, when you are faced with a challenge, you are equipped to make an informed decision about the future of your project.
What types of businesses need construction financial management?
Companies undertaking a new building project or renovation know they will need the expertise of a project manager to oversee contractors and an architect who can bring their vision to life. However, many don’t know the value an expert in construction financial management can deliver. You only have a limited amount of resources available to you. With the support of a financial manager, you can be confident that nothing will go to waste.
Financial managers are particularly valuable to highly complex projects. The higher a project’s budget and the longer the timeline, the more opportunities there are for financial setbacks to occur. We have experience managing finances on long-term builds with budgets exceeding $100 million. When you have a project that complex, you need someone with ample experience tracking, reporting and executing commercial real estate budgets.
However, it is not just highly complex projects that can benefit from the insight of a financial manager. With economic inflation and supply chain issues impacting costs and project timelines, a financial manager can help any project complete on-time and within budget.