5 Ways to Reduce Costs in Industrial Building Construction

Businesses make significant capital investments while undertaking industrial construction projects. Businesses would always be concerned with the cost implications when setting up manufacturing plants, warehouses, or distribution centers again. Even in the face of material price volatility and ongoing labor shortages, companies require proven strategies to complete their projects within budget without jeopardizing quality or safety considerations.

In this blog, we will be looking at the top 5 ways to reduce costs in industrial building construction.

Strategic Design Optimization

This is the stage where the most costs could be saved in industrial construction. Sound planning during this stage can help in reducing expenses throughout the lifecycle of the project:

Pre-engineered building systems which are faster compared to conventional constructions, can save 10-15% on cost and also help meet project deadlines.

Modular design enables future extensions without major structural changes

Optimal space utilization through efficient space planning minimizes redundant circulation space thereby increasing square footage for use.

Standardized components minimize fabricators time and reduce material wastage.

Lighting, insulation and HVAC systems with best economic solutions using energy modeling

By embracing advanced Building Information Modeling (BIM) technology, experts optimize designs even before commencing construction work. This often reveals potential for savings that other conventional methods might not spot.

Wise Choices in Material Selection and Procurement

On average, materials account for 40-60 % of the total cost of industrial construction. Consequently, informed decisions concerning materials can result in substantial savings:

Structural Systems

Steel-framed structures offer a good combination of strength, durability and affordability for the majority of industrial applications.

Precast concrete elements can speed up construction while ensuring quality is maintained.

Composite materials may allow for weight savings that minimize foundation requirements.

The Building Envelope

Insulated metal panels provide structural support as well as thermal efficiency.

Cool roofing membranes reflect sunlight thus lowering cooling costs.

High-performance glazing optimizes natural light while minimizing heat gain.

Interior Finishes

Polished concrete floors are durable and require little maintenance

Fire-resistant coatings increase the life span of structural members.

Modular wall systems afford easy reconfiguration when needed arises

Applying Lean Construction Principles

Lean construction strategies focus on streamlining operations and enhancing efficiency throughout the project’s lifecycle:

Planning and Scheduling

Aligning all trades for optimal workflow

Enhancing commitment reliability through the last planner system

Protecting critical path activities via buffer management

On-Site Execution

Reducing material storage needs using just-in-time delivery

Minimizing on-site labor requirements through prefabrication

Maintaining an organized worksite using 5S methodology (Sort, Set in order, Shine, Standardize, Sustain)

Continuous Improvement

Rapid reaction to emerging issues in daily huddles

Identifying opportunities for improvement during weekly productivity reviews

Capturing lessons learned from post-project evaluation.

These lean techniques typically reduce construction timelines by 15-30%, which directly translates to lower labor costs and earlier facility occupancy.

How to Choose a Good Option for Project Delivery

The selection of the right contractual approach can have significant impacts on project costs.

Design-Bid-Build (Traditional)

Preferred for projects that are well defined with minimum changes expected

It allows competitive bidding based on complete design specifications

May lead to increased change order costs if modifications are necessary

Design-Build

Single point responsibility reduces coordination issues

Constructability input can be provided during design process

Usually leads to faster total project delivery

Often offers better cost certainty than traditional methods.

Construction Management at Risk:

Early contractor involvement improves planning.

Guaranteed maximum price provides budget control.

Allows for phased construction to meet cash flow needs.

Integrated Project Delivery:

All key stakeholders collaborate from the start.

Shared risk/reward structure aligns interests.

Maximize value through team innovation.

Investing in Long-Term Value Engineering

Besides the initial construction costs, long-term operational expenses also need to be considered:

Energy Efficiency

LED lighting with smart controls

High-efficiency HVAC systems

Solar-ready roof designs

Building automation systems

Maintenance Optimization

Durable, low-maintenance materials

Easy-access design for equipment servicing

Corrosion-resistant finishes

Modular components for easy replacement

Future Flexibility

Adaptable utility infrastructure

Expandable structural systems

Reconfigurable interior layouts

Technology-ready designs.

Consequently, these value engineering decisions not only pay for themselves within a few years through reduced operating costs but also future-proof your facility.

Conclusion: Achieving More with Your Construction Budget

However, industrial construction projects don’t have to devastate your pocketbook. Thus, by focusing on these five strategic areas: design optimization, material selection, lean construction, delivery method selection and value engineering firms can achieve substantial cost savings without compromising the quality of their facilities.

Therefore partnering with an industrial building construction company that is experienced and understands how to strike a balance between upfront costs and long-term value is key. ICM has been in business for many years and is considered one of the leading companies in the field of industrial construction. We offer our clients unique solutions that are based on their specific requirements. To learn more about us, please visit our website.