Preconstruction Services: 5 Powerful Ways Smart Owners Save 15% on Construction Costs

Here’s something they don’t tell you in business school: the decisions you make before construction begins have more impact on your project’s success than anything that happens during construction. That’s where preconstruction services come in—and why smart owners always start here.

Studies consistently show that comprehensive preconstruction services reduce overall project costs by 5-15% and schedule overruns by similar margins. Let’s explore why these services deliver such powerful returns.

What Are Preconstruction Services?

Preconstruction services encompass the planning phase before physical construction begins. This includes budget development, scheduling, constructability review, value engineering, and risk assessment. Think of preconstruction services as the roadmap that guides everything that follows.

According to the Construction Management Association of America, preconstruction services are the most impactful phase for controlling project outcomes.

5 Key Components of Preconstruction Services

1. Conceptual Budgeting

Before you finalize designs, you need to know if your vision matches your budget. Preconstruction services provide realistic cost estimates early, when changes are cheap. This prevents the painful experience of completing design only to discover the project costs 40% more than expected.

2. Constructability Review

Architects design buildings. Contractors build them. Sometimes those perspectives don’t align. Preconstruction services catch design elements that are difficult, expensive, or impossible to build before they’re finalized.

3. Value Engineering

This isn’t about cutting corners—it’s about finding alternatives that deliver the same performance for less money. Maybe a different structural system costs less. Maybe alternative materials achieve the same look at lower cost. Preconstruction services find these opportunities systematically.

4. Schedule Development

A detailed construction schedule identifies the critical path, potential conflicts, and realistic timelines. Preconstruction services coordinate with your business needs—like opening for holiday season or before a lease expires.

5. Risk Identification

What could go wrong? Preconstruction services identify potential problems—site conditions, permit challenges, supply chain issues—so you can address them proactively rather than reactively.

The Real Value of Preconstruction Services

Why do preconstruction services reduce costs by 5-15%? Because problems solved on paper cost a fraction of problems solved in the field. A design change during preconstruction services might cost a few hundred dollars in architect time. The same change during construction could cost tens of thousands.

Consider this: your tenant build out budget is $500,000. A 10% savings through effective preconstruction services puts $50,000 back in your pocket—far exceeding the investment in planning.

When to Engage Preconstruction Services

The best time to bring in preconstruction services is during the design development phase—after you have a concept but before construction documents are finalized. This gives maximum opportunity to influence cost and schedule while designs are still flexible.

If you’re working with a design build contractor, preconstruction services are typically integrated into their standard process from day one.

What Preconstruction Services Cost

Preconstruction services typically cost between 0.5% and 1.5% of total construction cost, depending on project complexity. For a $1 million project, that’s $5,000-$15,000. Given the potential savings of 5-15%, it’s one of the best investments you can make in your project.

Many commercial general contractors include preconstruction services as part of their standard process. If you’re working with a traditional design-bid-build approach, you can still engage a contractor for preconstruction consulting—just make sure expectations about moving forward are clear.

Ready to start your project the smart way? Contact Bowser Construction Group to discuss how our preconstruction services can set your project up for success.