When we work in the real estate industry, we have a lot of responsibility. Whether it’s fixing things that go wrong, or whether it’s renovating, either way you need to know how best to budget and where you can potentially cut back the costs. It is good to look at labor cost calculation to see what you can afford and when and how much a job is likely to cost. All industries spend a lot on labor and this industry is no different. Whether that’s new electrics, home improvement or maybe a new garage. Whatever you put into your business, you will get back three fold so the investment will be a profitable one but how can you look at cutting things back even more?
Due to the demands created in the context of recent macroeconomic conditions and forecasts, a modern and much more ambitious framework is being developed to enhance the energy upgrade of homes for the transition to an energy saving and autonomous support scheme. With this in mind, as a property investor, investing in sustainable houses and building sustainable houses means better return on investment. People want to buy an energy saving property. As well as this, is your money going into the right areas when it comes to safety? Safe building is not a myth. With the help of modern technology and science it can and must be made. The knowledge, materials and methods are there to use but qualified construction moguls should be aware of this and should secure their property the best way possible. For example shockwaves were sent around the world following the Grenfell Towers event in London which looked at the use of cladding for the outside of buildings. Was it safe? The labor and materials used should always be greatly checked and if you fear for the labor costs, then it’s time you started getting some idea of the amount of money you can and should be spending. If you need to, you could look at a loan.
What are important features to note in this industry?
- Groundwork: The ground is the starting point of safe construction. With today’s technology and science there is no ground on which a construction can not be founded. Therefore, the first concern should be the research of the soil with the preparation of a soil technical study, in order to obtain the characteristics of the soil. Based on these, the qualified engineer will determine the type of foundation of the building.
- Special care is needed when the foundation soil has water or moisture. Then special waterproofing is required.
- The quality of materials used in construction is not controlled, since the state did not take care. That is, there is no mechanism to control the quality of concrete and iron reinforcement, which are the basic construction materials of the load-bearing frame. The citizen must ask for a preventive and sampling check.
- In arbitrary buildings there is usually no study, with all that entails for the behavior of the structure against the forces of an earthquake or other event.
- Additions or extensions to buildings beyond those provided by the study and the legal permit are prohibited. For example, adding a floor to a two-story building requires a special strength study of the existing building to receive the additional floor load. If this is not done, it will negatively affect the durability of the building.
- The correct study and supervision for the construction of a building is the responsibility of the qualified engineer, who has an obligation by law and responsibility to society as a whole to prepare a thorough scientific study and to impose it, as well as having the necessary surety bonds in place.
Look at how to save money inside the house
Once the house is built, what labor costs will be needed inside? You will want to create an efficient home that will sell quickly and people will want to buy. So what can be done to ensure that it is working well?
Fireplace: Close the butterfly of the fireplace chimney when you are not using it, so that it does not get cold. Instead, turn it on in the summer to generate electricity. Also, instead of throwing away the ashes, scatter them in your garden or pots. It is a first-class fertilizer and not only enhances the composition of the soil, but also discourages snails and slugs from devouring the leaves of your plants.
Showers and faucets: Use special saving filters. Water is mixed with air to increase its speed. This creates the feeling that it flows more, while reducing consumption by 40%. The same goes for the shower phone. It is a very cheap and very ecological solution for you installing it and for your owner.
The cost of construction of energy efficient homes energy is less than the cost of energy-intensive conventional dwellings and does not exceed the average cost of an average construction according to a recent survey. By reinforcing the walls and roof with thermal insulation materials you can also provide the new owners some comfort of their energy bills being lower per annum, and that is pretty attractive. Exterior thermal insulation and roof thermal insulation improve the energy efficiency of buildings, reducing the total energy consumption for heating and cooling. Studies show that strong retro-thermal insulation of masonry and roof can reduce energy by up to 60%. If you are building in a state that does not have as many sunny days per year, Alaska, Montana, Ohio, then solar powered panels may not work as efficiently and again these are logistics that need to be looked at beforehand.
Property prices are rising since Covid 19
So far in 2020, Chinese companies continue to dominate the top 100 in terms of revenue, while other Asian players, mainly from Japan and South Korea, along with companies from the US, France and Spain, have a significant presence in the ranking. However there are still some problems and therefore it’s important to consider your finances before moving forwards at this time.
The restrictions imposed had a significant impact on all parties involved in construction projects, not to mention serious economic consequences. The remedies provided by law to the parties to protect their rights and limit their losses in these extremely unusual circumstances depend on the terms of their respective contracts, but also on the applicable law. Time extensions and time and money claims are inevitable and this could cost you money. Claims for extension of time and additional costs / losses and expenses due to the pandemic may cost money that will halt the project altogether and some insurance companies may not cover.
The first, immediately obvious effect of COVID-19 on construction projects is the delay and cessation of project activities, which will inevitably lead to contractors’ claims for extra time and cost. Another, perhaps even more important, consequence of the global pandemic caused by COVID-19 is that some contractors are forced or will be forced to suspend projects altogether or, in the worst case scenario, terminate their contracts. If you were planning on constructing a certain amount of properties, this can certainly be tricky.
What should be done with the construction contracts that are to be concluded during this period?
Because force major events are usually characterized as unexpected, unknown or unpredictable, and the existence and consequences of the COVID-19 pandemic are currently known, although not necessarily its duration, there is debate as to how to deal with it. This issue can be particularly serious regarding agreements that were signed before the pandemic, while others were not signed, and now the parties know about it before the signing of the documents that were not signed. Talking to your insurance company would be the best option during this time.
Managing finances in construction
The five major principles in financing construction are: consistency, timeliness, justification, documentation, and certification. During Covid, res-assessing your financing and ensuring that projects can be completed will be vital. Here are seven simple tips to assist you:
- Make a Payment Schedule.
- Pay in Advance.
- Manage Materials Effectively.
- Good Contract Management System.
- Timely Delivery of Materials.
- Oversee Workers’ Activities.
- Possibility of Using Loans.
The industry in general is shifting to a new economical landscape and it is proving to be incredibly beneficial. Investing back into technology is going to help make you a leader in your chosen industry and the construction business is seeing this more and more. With innovations in technology growing, the construction industry can expect more innovative and valuable transformations. This will be improved by the use of augmented reality and virtual reality (AR/VR), drones, robotics, and additive printing, all of which are leading the way to a modern slant. This is not to be taken lightly; to continue to thrive, there is a definite amount of change that needs to be made before you can see yourself taking center stage again. It’s time to educate yourself and get on board of these changes for a prosperous 2021.