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Multiple Challenges Put Pressure on Design and Execution Costs

Cătălin Podaru, CEO of Leviatan Design & Ubitech Construcții

The construction field is facing multiple challenges in 2023, which have a direct impact on the costs of design and execution services. Firstly, the lack of specialists in design and execution must be mentioned, as well as in the area of skilled and unskilled labor for construction sites.

At the same time, the price of design and execution services is influenced by financing costs, which have doubled in the last year. Financing costs have a major impact on large-scale projects, considering that financing is essential for the successful completion of projects.

Moreover, the costs of execution services are also influenced by the galloping increase in prices and the problems recorded in the supply chain, which affect orders for construction materials and equipment.

Remuneration is another element that is reflected in the price of design and execution services. Although our companies have increased salaries by 20% on average this year, the increases generated by inflation and other factors have posed real challenges in ensuring wages that motivate staff, so they do not consider leaving.

The lowest price in the bidding stage can lead to multiple problems and errors in design

Beneficiaries should define their requirements very well, specifically their needs for the use of space, so that the design team can determine the optimal technical specifications for the project, in relation to the established budget. It is obvious that space utilization needs vary from beneficiary to beneficiary, depending on their scale.

Also, choosing the design and execution firm is very important. In introductory meetings, beneficiaries should request a presentation of the working methods and the methodology used during the project’s implementation and execution, as well as specific examples of their implementation.

It is imperative that the presentation of the working method and management capability is consistent with the price offer, considering that many beneficiaries choose the lowest price in the bidding phase, and later face multiple problems and errors during the project’s implementation.

At the same time, beneficiaries should request the design and execution firm’s portfolio of completed projects, both for the design phase and for the execution phase, in accordance with the BIM standard. Even though most beneficiaries are still not familiar with this process standard, they can research the benefits it brings in the design and execution phase, as well as in the exploitation phase. Only in this way can beneficiaries make the right decision, ensuring a high level of project quality.

BIM allows beneficiaries to almost follow the project’s implementation progress in real-time

The interest of beneficiaries in new materials and technologies is continually growing, considering the many advantages they offer, both for beneficiaries and design & execution companies. However, it should be underlined that major beneficiaries are more oriented towards sustainable projects, while smaller beneficiaries are more hesitant about implementing sustainable solutions in construction projects, considering that these imply higher costs.

BIM technology is certainly among the beneficiaries’ preferences, thus following the trend recorded at European Union level, BIM tending to become a necessity. The use of the BIM methodology in design and execution offers beneficiaries more transparency and elements of direct control in all project stages, losses are reduced, and the amount of effort to remedy errors is also diminished. BIM ensures quick coordination between specialties, and beneficiaries can easily understand the technical and design implications of the project starting from the design phase, without having technical knowledge.

Moreover, beneficiaries can almost follow in real-time the progress of implementation and how the quality requirements imposed in the project are met.

It is very important to mention that BIM contributes to reducing the decision-making time during the project’s implementation. However the greatest benefit for beneficiaries comes in the exploitation stage, as BIM offers beneficiaries detailed information about the built space and the possibility of intelligent exploitation.

Sustainable construction materials are also among the preferences of more and more beneficiaries, which means that the projects we implement can be increasingly energy-efficient, with a reduced impact on the environment.

 

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