Building A Commercial Property On A Budget

One of the biggest challenges of building a commercial property is creating a budget and sticking to it. Commercial properties have so many moving parts to juggle, especially if you’re working with a large volume of subcontractors. Determining how much the project should cost is challenging in its own right, but it’s also very difficult to stick to that budget as the project goes on.
There are many different factors to consider when developing a budget for your commercial property. Here’s what to keep in mind when building your project budget.

Available Funding

When putting together your budget, you’ll need to consider what sources of available funding you already have, as well as what cash flow will look like during the projects. If the cost of the work doesn’t align with your available funding, you’ll need to secure other sources in order to move forward.

Planning and Design Costs

In order to determine your total budget, you’ll need to have a plan for what the space should look like. This should be done as early as possible in order to keep the project moving forward on schedule. Keep in mind that planning and design will have their own associated costs. Additionally, you’ll need to pay for assessments and permits before you can start building.
You won’t have a fully clear picture of your budget until the planning phase is underway. To get an estimated budget before that point, look at similar construction projects that have happened in your area over the last few years. You can use their budgets as a benchmark while you’re in the early stages.

Current Construction Market

It’s also important to consider the current construction market in your area when making budget decisions and planning your timeline. Every city has its own unique building restrictions, and some cities are more expensive to build in than others. Labor shortages and supply chain issues have been very common in recent years, so this is important to take into consideration as well.

Labor Costs

There are many different subcontractors involved in bringing a construction project to life. When developing your budget, you’ll need to consider who will be working on the project throughout its lifespan and what their labor costs will look like. It’s also important to keep in mind that labor costs can change throughout the project, especially if you encounter unexpected challenges
that stretch your project timeline. This should be factored into your budget from the beginning to avoid financial constraints later.

Material and Construction Costs

Finally, you’ll need to consider the costs of the physical materials you’ll use as part of the build, as well as any other related construction costs you haven’t already addressed. Material costs can vary widely depending on the projects you’re working on and the vendors you’re partnering with. Consider using a value engineering strategy to find more affordable building solutions without compromising quality. Developing and sticking to a commercial construction budget can be very tricky. Starting on your budget well in advance can help you use your funds more efficiently.

At New Horizons Construction Services, we help our clients build and renovate commercial properties with budgetary restrictions in mind. We’re an Orlando-based general contractor that works on a wide variety of commercial construction projects. If you’re interested in learning more about our services, give us a call at 407-574-2164 or contact us through our website.