How to Avoid Cost Changes on Your Project: Planning Ahead and Locking in Orders

In any project, effective budget management is crucial to ensuring success and avoiding unnecessary stress. Cost changes can have a significant impact on the project's progress and can sometimes lead to undesirable outcomes. Statistically, at least 85% of all projects run over budget to some degree. In this blog, we'll focus on the benefits of locking in orders early for future delivery and briefly discuss other tips that can help you avoid cost changes in your project.

Lock in Orders Early for Future Delivery

The primary strategy to minimise cost changes and uncertainties is to place orders for materials and services early, securing pricing and availability. By locking in orders ahead of time, you can enjoy several benefits:

• Secure pricing: Early ordering helps you lock in current prices, avoiding potential cost increases due to market fluctuations or supply chain issues.
• Availability: Ordering early ensures that the materials and services you need are available when required, preventing delays that could impact your project timeline and budget.
• Discounts or incentives: Suppliers may offer discounts or incentives for early ordering, which can help you save money and keep costs under control.
• Better project management: Scheduling deliveries according to your project's needs becomes easier when you've locked in orders, allowing for smoother project execution.
• Improved cashflow: By securing prices and availability ahead of time, you can better plan for your project expenses, ensuring that you have enough funds available when payments are due.

At Astra Street Furniture, we’re committed to making your project as easy and stress-free as possible. That’s why we’re happy to take your order now and hold the stock aside for you until you’re ready for delivery.

Understand Your Project Requirements

Before taking any other steps, make sure you have a clear understanding of your project's scope, objectives, and requirements. Break down the project into manageable tasks and identify the key materials, resources, and services needed for each stage.

Develop a Detailed Budget and Timeline

Create a comprehensive budget that accounts for all expenses, including materials, labour, and other resources. Estimate costs for each component and develop a realistic timeline for project completion to help you monitor progress and make adjustments if necessary.

Build Contingencies into Your Budget

Include a contingency fund in your budget to cover unexpected expenses. Determine an appropriate contingency percentage based on your project's size and complexity and allocate these funds effectively.

Regularly Monitor and Update Your Project Plan

Track your progress, review and update your budget and timeline estimates regularly, and communicate with stakeholders and team members about any potential cost changes. Work together to address them proactively.

Foster Strong Relationships with Suppliers and Contractors

Build and maintain good relationships with suppliers and contractors to secure better pricing, terms, and support. Effective communication and negotiation can help you get the best deals for your project.

Don't let cost changes derail your project's success. Our team at Astra Street Furniture is here to help you lock in orders early for future delivery, ensuring you get the best prices and materials when you need them. With our expertise and commitment to customer satisfaction, we'll work closely with you to make your project a seamless experience. Contact us today on 1300 889 821 to learn more about how we can assist you in effectively managing your project's budget and timeline.