Why Working with CHECKSET Simply Makes Financial Sense
Introduction: The High Cost of Errors in Construction
The construction industry is a cornerstone of the global economy, with U.S. construction spending alone projected to exceed $2.2 trillion in 2025, according to the U.S. Census Bureau. However, this massive industry comes with significant financial risks. Studies show that rework costs account for more than 12% of project expenses, and over 50% of project overruns stem from design errors and omissions in contract documents. These errors contribute to an annual loss of approximately $264 billion, highlighting the staggering impact of inadequate review processes.
When contractors receive incorrect or incomplete drawings, the ripple effects can include incomplete bids, expensive change orders, and formal RFIs (Requests for Information). These lead to schedule delays, budget overruns, and even litigious disputes. In an industry where margins are already tight, these issues can make or break the financial success of a project. That’s why working with CHECKSET Review is not just a precaution—it’s a financially responsible decision.
Defining the Financial Impact of RFIs and Change Orders
The financial burden of RFIs and change orders on construction projects is substantial:
- The Cost of RFIs: On average, each RFI costs $1,080 in soft costs, including the time and resources needed to generate, distribute, and resolve the request. These costs compound quickly, especially on large-scale projects where hundreds of RFIs may arise.
- The Cost of Change Orders: Change orders are even more costly, averaging 6% to 15% of the total project cost. Beyond direct costs, they introduce indirect expenses such as schedule disruptions, increased project risk, and lost productivity. These unplanned changes can drastically impact a project’s profitability.
The cumulative effect of these inefficiencies is significant, but they are often treated as an industry norm rather than a solvable problem.
The CHECKSET Solution: Reducing Financial Risks
CHECKSET offers a proactive approach to document review, addressing the root causes of RFIs, change orders, and other project inefficiencies. Our comprehensive peer reviews systematically analyze your construction documents, identifying potential issues and offering actionable recommendations before they become costly problems.
Key Benefits of CHECKSET’s Reviews:
- Reduction of RFIs: By identifying and resolving ambiguities in construction documents early, CHECKSET reduces RFIs by up to 70%. This saves significant time and resources while keeping the project on track.
- Minimized Change Orders: Comprehensive reviews catch design errors and omissions before they reach the field. This reduces the frequency and scope of change orders, leading to savings of 2% to 5% of the total project budget.
- Schedule Optimization: With fewer disruptions and rework, projects progress more smoothly, meeting milestones on time and avoiding costly delays.
- Prevention of Legal Disputes: Clear and accurate documentation minimizes the potential for misunderstandings and disputes, protecting stakeholders from costly litigation.
- Avoided Rework: Identifying issues early prevents rework, reducing labor and material costs while maintaining project momentum.
- Improved Coordination: CHECKSET’s reviews enhance coordination between disciplines, ensuring all project elements align seamlessly.
Why CHECKSET is the Financially Responsible Choice
Construction budgets often include contingencies of 5% to 15% to account for unforeseen expenses. By partnering with CHECKSET, firms can immediately realize savings of 2% to 5% of the total project budget. These savings are achieved through:
- Early identification of potential risks.
- Reduced reliance on contingencies.
- Improved documentation quality, reducing the likelihood of disputes.
Moreover, CHECKSET’s reviews help avoid reputational damage by ensuring clients deliver accurate, high-quality documents that inspire confidence among contractors and stakeholders.
Conclusion
Choosing CHECKSET is not just about addressing errors; it’s about transforming how projects are managed from the ground up. In an industry where financial risks and inefficiencies are often accepted as the status quo, CHECKSET redefines the standard by providing measurable savings, reducing disputes, and ensuring smoother project execution.
By integrating proactive reviews and expert oversight into your workflow, you can significantly lower project costs, meet deadlines with confidence, and maintain trust with all stakeholders. CHECKSET is more than a service provider; we are a partner committed to safeguarding your investments and setting your projects up for success. When every decision matters, working with CHECKSET simply makes financial sense.
