Time & Money

Talk to any investor and you will enter into a conversation about the time-value of money.  While this refers to the interest earned of paid in a financial relationship, there are elements that apply to the construction process as well.  Most projects are funded wither by a third party lender or investors seeking a profit.  For this reason, time and money are inexorably tied in every construction project.  If a project takes longer than expected there will not only be the increased interest change, there is also the danger of lost revenue.  If the project has a specific projected opening date, such as a first day of school for student housing, delays can end up derailing and otherwise profitable venture. 

While balancing the expenditure of time and money is important, the construction company adds the additional challenge of meeting a required level of quality.  Fast and cheap are not the only standards of expectations of an owner and therefore the project must be well planned to meet all of the developer’s goals. The use systems and models, part of basic control theory, can help manage these elements of a project.  There are many things that can impact a project such as weather, vandalism, and delay in material - sometimes referred to as "lightning bolts" due to their unexpected nature.  Despite those events, every project must start with a standard and plan for the design, budget, and schedule.  Maintaining ongoing evaluation of this schedule allows the different parties to identify changes in timing or expenditure in a timely manner, allowing for adjustments if necessary or possible.  The primary way to do this is through regular communication between parties and a comparison of actual numbers to the base plan. Turnaround documents (TAD) and regular meetings are one way to help keep everyone on the same page and, hopefully, maximizing the spending of both time and money.