Construction Costs – How low can they go????

Posted On: January 11, 2011
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The “RECONCILIATION” of the Construction Industry over the past 3 years has  decimated many general contracting firms. Between the volume of work decreasing (almost to a trickle) and the disappearance of available capital to finance new projects, Construction firms have struggled to maintain their core personnel and subcontracting teams. This has certainly impacted the Mummaw CREATE team.

Labor costs have plummeted, while material costs have either plateaued or even risen. Overhead Staff has all but disappeared and we are all (whoever is left) are battling through intensive bid processes to earn Work. A recent Tenant Improvement Project included five (6) bidders. In the past, we have had to compete against 2-3  other firms. I have heard examples of public work projects bidding with 20-30 General Contractors. That is an inordinate amount of competition and it becomes quite obvious that the low bidders are actually doing work BELOW their costs. The facts do not lie. Everyone pays the same for materials, It takes “x” amount of time on average to install the Work. So the only factor left is labor and a reasonable amount of overhead to pay for critical must-haves like, Liability insurance, licenses, and basic administration services.

This is not the first time we have been through such a down-turn. Over TWENTY-FIVE years we have seen now three of these cycles. Certainly and without question, this is the worst. However, as General Contractors in South Florida, navigating this turbulence, we must stay focused on the essential ingredients that will enable success and Client satisfaction.

Mummaw and Associates, General Contracting Division strives for these THREE CORE OBJECTIVES:

Being Competitive – Have a strong dependable subcontractor team that knows how to build and is structured to provide affordable Labor YET still maintain enough margin to operate their business.

Service, Service, Service – Give the Client MORE than they expect and help them transition their relocation into new space so THEY CAN OPERATE THEIR BUSINESS more efficiently.

Quality Control – Do not let your quality go down just because the price has. Once built, your Work is permanent. Let it be a testimony to your reputation. Your Client will “experience” your Work every day. Let them feel pride in knowing they selected the right Construction Team.

In order to build successful projects, Mummaw and Associates is managed by experienced service oriented staff. It then deploys state of the art construction management, schedule and contract management systems as if it was large public general contracting firm. These technology advantages enable us to  streamline necessary mundane processes in order to focus on being competitive, servicing our great Clients and providing exceptional quality.    Let us show you how our budgeting, competitiveness and quality Construction Management systems can make your project successful.

Because we BUILD relationships first and then the project second, our general contracting services are just another extension of our overall Firm Methodology to Conceive, Design & Create dynamic projects. What can we CREATE for you????