How we help
Encountering budget overruns in your construction project?
You’re at the brink of breaking ground and seeing the vision that’s been years in the making finally come to life. Your development project suddenly hits a wall: the construction bids are in and the numbers are staggering… FAR above what was forecasted. The shock waves through your team are palpable. There’s a sinking feeling as the reality sets in: moving forward at these costs is not even possible. This deal is dead. Even if you could find a way to make it work at these numbers, doing so could cripple the financial stability of your entire company, potentially unraveling the future of your other projects as well.
At this point, every decision weighs heavily. Investors are growing anxious and the clock is ticking on your deadlines. The pressure mounts. You find yourself sleepless, wondering how you’ll navigate the financial implications. Are there any options? Maybe if you can compromise the quality of your project and downgrade the amenities or the finishes? But even if you can, this isn’t just about numbers: reputations are on the line.
This is where CDK steps in. We understand that behind every budget are years of hard work and ambition. We’ve developed our services to not only address but to anticipate the hurdles that throw projects like yours off course. Let’s look at some of the most common challenges you face as a commercial developer and talk about how our strategic interventions are more than solutions — they’re your pathway back to success.
challenge:
high bids over budget
After years of detailed planning, securing funding, countless applications and approvals, you are finally nearing your construction start. But as the bids roll in, the figures are nothing short of a cold shower – each one significantly higher than your carefully calculated budget.
This isn’t just a hiccup; it’s a critical threat that could derail years of effort and investment. As costs spiral out of control, the stability of your entire project faces failure.
You need solutions that can pull your project back from the brink. And you need them today.
solution:
Reduce construction costs
Right when the stakes couldn’t get higher, that’s where CDK comes in. It’s like having a financial navigator for your construction project. We dig deep into your project’s budget, leveraging our experience in managing $1.8B in construction costs across more than 120K multifamily units, hotel keys, and homes over the last 20 years to pinpoint where costs can be reduced.
What we DO NOT do:
- We do not squeeze profits from the sub-contractors and suppliers.
- We do not swap in cheaper quality materials.
- We do not reduce design intent.
What we DO:
- We DO seek out what are typically hidden opportunities……we identify more cost effective alternatives, present the owner with quantifiable options.
- We get creative with labor options by introducing a new group of sub-contractors to the project.
- We find the fluff… and remove it. We jump downstream to source supplies.
- We explore design tweaks and comparable material substitutes.
- We lean hard into detailed cost analysis and value engineering.
- We break down every line item, separating materials and labor, to ensure that every cent is put to its best use.
It isn’t just about cutting costs—it’s about smart spending that keeps the quality and design intention of your project intact.
challenge:
Compromising Quality Under Budget Pressure
After meticulously working through every detail of your project – from the architectural designs to the amenities to the interior finishes – you’re faced with the daunting task of making it all work within an unexpectedly tight budget.
The bids are in and they’re higher than anticipated, forcing you to reconsider every specification and design element.
This isn’t just about shaving off a few dollars—it’s a severe dilemma that could compromise the aesthetic and functionality of your vision, potentially diminishing the project’s market appeal, profitability and long-term value.
Cutting corners could tarnish your reputation and jeopardize future projects.
You need solutions that maintain quality without breaking the bank. You need them now.
solution:
strategic value engineering
We understand the delicate balance between cost and quality. Our team of value engineering experts dives into the specifics of your design and construction plans, searching for innovative yet practical cost-saving alternatives. We don’t just make cuts; we make smart swaps and adjustments that preserve (and often enhance) the quality of your project.
We scrutinize every proposed material and method, looking for opportunities to optimize without compromise. Whether it’s sourcing high-quality but more cost-effective materials, or rethinking construction techniques to save on labor while enhancing efficiency, our approach ensures your project remains both financially feasible and uncompromised in quality
challenge:
Delays from Procurement Mismanagement
You’re on the cusp of breaking ground when you hit a major snag: critical building materials are delayed, or they arrive failing to meet your quality standards. Suddenly, your project timeline is spiraling out of control.
Each delay not only strains your budget but also erodes trust with your investors and stakeholders. More than just a setback, these procurement issues threaten the credibility and viability of your current and future projects.
You need a way to ensure reliability in your supply chain to keep your project moving forward smoothly.
solution:
Proactive Procurement and Supply Chain Optimization
Utilizing our broad network and profound expertise in supply chain management, we have a proactive approach that doesn’t just solve problems as they arise… it helps to prevent them.
By ensuring the timely arrival of materials with strategic phasing, your project can progress as planned.
With CDK, you gain the assurance that your supply chain works for you, not against you, maintaining project momentum and stakeholder trust along the way.