Total Displacement Cost: The Costs You May Not Be Accounting For In Construction

Construction projects are great for business because they show signs of new opportunity and growth. Consequently, construction can also lead to delays, downtime and displacement. These things can be incredibly costly for business Modernbb.

When construction planning begins there is typically a budget in place. From this budget companies can gauge the scope and size of the construction projects. What often gets left out of these calculations is downtime and displacement, which have the potential to sometimes outweigh the costs of the construction project.

Most construction projects work by sending skilled workers to the job site where they work with a variety of materials that are also sent to the worksite. Much of the construction and fabrication takes place on- site. There are limits to this style of construction, and depending on location there can be inclement weather delays. Furthermore, materials can be delayed which sets up a chain reaction of other delays down the line.

An alternative to traditional construction is modular construction. This style of construction consists of building all the major construction components off- site and then shipping them to the job site for assembly. Off- site assembly allows a team of skilled experts to focus on your project and yields a very high quality control rate. Best of all, because the construction takes place in an environmentally controlled facility, there are no weather delays during production.

Since the majority of the building takes place off- site, on- site construction is considerably faster than traditional methods. Several studies have shown a 50% faster completion time over traditional construction. What this all translates to is cash savings through a minimized total displacement cost.

The total displacement cost is the sum of all the areas that construction will potentially be affecting through downtime and disruption. Although each project may be a little different, companies can still put together a cost analysis based on several different factors. One of the key factors of this analysis is totaling displacement. Depending on where the construction will be happening and how long it will take can greatly affect how many of the staff will need to be moved and the creation of temporary workplaces.

The other factor to note is downtime of the facility. If construction is taking place in vital areas of production, the production may need to be halted or moved. Furthermore, having a large construction project take place in or near a heavily trafficked area can be a distraction to the workplace. These types of things diminish the output of the facility and increase the costs of the overall project.

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