UBCNews - Business - Steel Building on a Budget? Why Skipping a Construction Manager Backfires

Episode Date: March 25, 2026

Welcome back, everyone! Today we're tackling something that could save you a fortune if you're planning a steel building project. We're talking about construction managers and why they're absolutely essential. So, have you ever wondered why nine out of ten construction projects face cost overruns? Veltri Steel, LLC. City: Greenwood Village Address: PO Box 5393 Website: https://www.veltristeel.com

Welcome back, everyone. Today we're tackling something that could save you a fortune if you're planning a steel building project. We're talking about construction managers and why they're absolutely essential. So have you ever wondered why nine out of ten construction projects face cost overruns? Yeah, and those numbers are actually pretty staggering. Large projects can run up to 80% over budget and take 20% longer than scheduled. That's more than a minor hiccup. That's a disaster for most owners.

Exactly. So let's start with a big question. Why is a construction manager essential for keeping steel projects on time and on budget? Well, think of a construction manager as your independent advocate throughout the entire project lifecycle. They're working exclusively for you, the owner, from design all the way to completion. Unlike a general contractor whose interests might lean toward keeping their own costs low and profit high, a CM is protecting your interests every step of the way. Right. So they're overseeing budgets, timelines, contracts, and making sure everything stays compliant? Definitely. And here's the thing. Steel building projects face unique challenges. You've got raw material price fluctuations, labor costs that can spike unexpectedly, supply chain disruptions.

Without someone managing these variables, you're going to see budget overruns from poor estimating, unchecked contractor markups and change orders that pile up. Makes sense. So what we're really talking about is having that layer of protection. What about the coordination side? I mean, steel projects involve so many moving parts, architects, engineers, fabricators, or rectors. That's where the CM becomes invaluable.

They coordinate all those trades and parties, eliminating downtime and keeping projects moving forward. I remember working on a project once where the design drawings had inconsistencies, a leading cause of cost overruns, by the way, and the CM caught it early before fabrication even started, saved us weeks and thousands of dollars. That's a perfect example of risk mitigation. Speaking of which, how does a construction manager handle unexpected challenges in steel building projects? Great question. Construction managers are trained to identify potential risk before they become expensive problems. We're talking about safety hazards, design changes, weather conditions, unforeseen site conditions, all of these can derail a project. A CM developed strategies to mitigate

and manage them proactively. So they're essentially troubleshooting before trouble even shows up? Exactly, and the data backs this up. Effective risk management and construction can lead to cost savings of up to 15 percent and time savings of up to 30 percent. That's significant when you're dealing with tight budgets and deadlines. Those savings are huge, so to everyone listening, if you're an owner planning a commercial or industrial project, these numbers should really get your attention. Right. And another vital piece is quality management. CMs ensure that all teams produce work aligning with the planning phase details. For steel structures especially, this is necessary for durability and safety. Systematic quality

control detects and corrects errors early, preventing costly delays down the line. I see. Go on. Because once steel is fabricated incorrectly or erected wrong, you're looking at major expenses to fix it. And nobody wants to be that person explaining to stakeholders why the budget just doubled because of a fabrication error. Trust me, that's a conversation you want to avoid. Ha! No kidding. The quality of structural steel really is essential for a building's safety and performance, right? Absolutely. It safeguards against potential failures against potential failures. failures and costly repairs. Without a CM prioritizing that quality from day one, you're vulnerable.

In other words, a CM ensures quality management at every phase. You can think of it as insurance for your investment. That point about quality management and preventing errors really sets up our next piece, how CMs maintain communication across all parties. But first, a quick word from our sponsor. When you're planning a steel construction project across the Rocky Mountain region or beyond, you need a general contractor who specializes in structural projects that incorporate steel in design and construction. Veltri Steel handles the challenging assignments that others won't touch, delivering quality turnkey projects on tough jobs. They thrive where complexity meets structural steel. Learn more at Veltrysteel.com.

Welcome back. Picking up on quality management and preventing errors. How does centralized communication actually work when unexpected? did material delays hit? Delays and material delivery are super common, and they affect overall timelines and expenses. A CM mitigates this by maintaining centralized communication channels. That reduces misunderstandings, arguments, and errors. They're also tracking shipments, coordinating with fabricators, and adjusting schedules in real time to minimize impact. So the real focus here is keeping everyone on the same page and being flexible when issues arise.

Exactly. And here's something a lot of owners don't realize. Without a CM, schedule delays often happen when coordination between trades or approvals falls apart. Miscommunication between architects, engineers, and contractors leads to costly mistakes. The CM acts as that bridge speaking everyone's language. You mentioned earlier that CMS provide accurate budgeting and resource management. Can you break down how that works in practice? Sure. CMs track every dollar through detailed reporting and budget tracking. They prevent mistakes or disputes that drive up project costs. They're also watching for contractor-driven decisions that might benefit the builder more than the owner. By maintaining transparency around where your money's going and why timelines might be slipping, they keep you informed and empowered. I mean, that transparency alone is worth it. How many times have owners felt in the dark about their own projects? Too many. And that's the real value. A CM ensures accountability at every phase. They facilitate faster builds through efficient workflow, detailed planning, and scheduling, which increases productivity and reduces delays.

Put simply, a CM protects your interest while keeping the project on track. That's their core job. So we've established that a construction manager is your advocate, your coordinator, your risk manager, and your quality enforcer. For anyone out there considering a steel building project, what's the bottom line here? The bottom line is this. Steel construction is complex. The challenges, material costs, fabrication expenses, supply chain issues, coordination demands, they're real and they're expensive if not managed properly. A construction manager protects your investment, eliminates surprises,

and ensures timely completion while maintaining quality stability. standards and optimizing resource utilization. You know, I think that's the key takeaway. Don't go into a steel project without that professional oversight. The risks are just too high. Absolutely. And remember, the role of a construction manager is critical to the success of any construction project, ensuring it's completed on time, within budget, and to your specifications.

Perfect place to wrap. Thanks so much for breaking this down today. Really valuable insights for our listeners planning these big projects. My pleasure. Happy to help.