What do you do if your finances in Building Design are spiraling out of control?

The first step in gaining control over your financial situation is thorough assessment. Review your current expenses, income, and budgets. Use accounting software or financial management tools to get a clear picture of where money is being spent and where you might be over budget. Understanding the specifics of your financial flow is crucial in making informed decisions moving forward.

It depends, but generally if I am the owner side I would reduce the scope of job with keeping the specification unchanged as much as I can. For example the 15 stories hotel I would make it 10 stories but with the same quality. If the job relates to something machinery, the difficult to modify parts I will keep as it is but I will reduce the specs of easy to change items. I also would revise comprehensively the stores, people performance, equipment utilization and instruct controlling the waste to the minimum. Also I would focus on modern technologies to get things done more quickly. I will also check the psychology of people and give them more hope and more good news. Night shifts I may cancel, instead make the morning shift earlier

Once you have a detailed understanding of your financial landscape, revisit your budget. In many cases, budgets set at the beginning of projects can become outdated as project scopes evolve. Adjust your budget based on current data and future forecasts. Make sure to account for unforeseen costs and ensure your budget reflects realistic spending limits.

Ask the consultant or contractor for value engineering options. These could include opting for different brand of lighting products, etc.. but make sure not to cut costs on essential equipment such as Low voltage equipment and wiring containment as these always come back to bite you in the future if you try to cut costs in the beginning.

Identifying areas where you can cut costs without compromising the quality of your project is essential. Consider negotiating contracts to better terms, buying materials in bulk, or substituting expensive materials with more cost-effective options that do not affect structural integrity or design aesthetic. Also, review subcontractor costs and find ways to reduce expenses by optimizing labor use.

Efficiency is key in managing finances effectively. Streamline your operations by integrating project management software that allows you to track project progress, resource allocation, and timelines in real-time. By improving process efficiency, you can reduce delays and cost overruns, ensuring projects are completed within budget and on time.

Don't hesitate to seek advice from financial advisors or experienced colleagues in the industry. Consulting with experts can provide you with insights and strategies you may not have considered. Additionally, professional networks can offer valuable resources and guidance on financial management in building design.