How to Build a Commercial Building on a Budget Without Compromising Quality
Do you remember the last time a commercial building client came to you with a project that had an unlimited budget? No? Neither do we. Virtually every construction project has a strict budget, meaning contractors must keep an eye on every penny. And while you can do more with more money, being constrained with a tighter budget doesn’t mean sacrificing quality. In this post, we’ll give you tips on how to work within a small budget while still knocking it out of the park with a high-quality building and making your client happy.
Make a Detailed Plan
The 18th-century Scottish poet Robert Burns famously wrote, “The best-laid plans of mice and men often go awry.” This is why it’s crucial to have a detailed plan before starting any commercial construction project, particularly one on a shoestring budget.
Making a detailed plan won’t prevent hiccups along the way, but it will minimize them and ensure they don’t derail the project. Things to consider in this phase are:
- The purpose of the building.
- Estimating size and space requirements.
- Planning for future scalability.
This beginning stage is also where you’ll want input from professional architects and project managers to ensure the client’s budget is realistic. It’s not uncommon for clients to have champagne tastes on a Mountain Dew budget.
The more detailed the plan is at the beginning, the fewer surprises you’ll encounter once the digging begins.
Set a Realistic Budget
Your client may come to you with a number in mind, and you might be tempted to take on the work, especially during slow periods. However, while it’s tempting to cut corners and work with ridiculously low budgets, this approach often results in higher costs down the road. Set aside contingency funds — around 10% is a good rule of thumb. Despite taking care in the first step, you know that things rarely go 100% according to plan and having contingency funds can help with unexpected expenses.
Select the Right Location
The mantra when buying a house is, Location, location, location, and the same is true for developing a commercial building. Where you build your project will affect the budget and determine whether the project is a success or failure. One way to choose the right location is based on what kind of building you’re constructing. For example, you don’t need prime real estate if you’re building a warehouse for a commercial plumbing company. However, a surgical center needs easy access, a visible location, etc.
Focus on Essential Features
It’s easy to get sidetracked by all the shiny extras if you’re on a budget but take it from us: the key is to focus on what’s essential to the project. Ask yourself what will add the most value to the building without breaking the bank. Functionality must come first. If you’re building a warehouse, maximizing space is essential. If it’s an office building, it’s the layout and flexibility to adapt as the business grows.
That said, you don’t have to give up on aesthetics, but instead of opting for high-end materials everywhere, choose wisely. For example, use affordable flooring in heavy-traffic areas, like hallways, and save the more expensive stuff for smaller, statement areas like lobbies or conference rooms, where people are more likely to notice the floor and how nice it looks.
Use Cost-Effective Materials
Speaking of materials, there’s a misconception that you need to use expensive materials for a high-quality building. However, the truth is there are plenty of cost-effective materials that look great, get the job done, and keep you on budget. For instance, metal studs are cheaper alternatives to wood framing, but they’re just as sturdy, if not more so in some cases. Concert tilt-up panels are another budget-friendly option, especially for larger buildings.
When it comes to finishes, you can opt for vinyl flooring that mimics the look of hardwood or use quartz instead of marble for countertops. The key is to find the sweet spot between durability and aesthetics without going overboard.
Work With the Right Contractors
This one’s huge. A contractor can make or break the project. Get someone who knows how to stretch a dollar and isn’t afraid to get creative when it comes to problem-solving. In our experience, some contractors are fantastic at working within a budget, while others nickel and dime you for every little thing.
Don’t be shy about negotiating, either. Many contractors have room in their quotes to lower prices if you’re upfront about the budget. Just make sure your efforts to cut costs aren’t sacrificing quality or setting you up for hidden fees down the road.
Consider Prefabricated or Modular Construction
Prefabs and modular buildings are game changers for commercial building projects on a budget because they save time and money. Using prefabricated or modular buildings cuts down on labor costs and minimizes weather-related delays, which can drag out the timeline and rack up costs.
Timing is Everything
Timing plays a crucial role in overall costs. If you start construction during a busy season when contractors are in high demand, you’re probably going to pay a premium. We recommend scheduling your build during slower periods when labor may be cheaper, and subcontractors are more available.
Building a commercial building on a budget doesn’t mean sacrificing quality. With the right plan, materials, and contractors and staying focused on what matters, you can create an aesthetically pleasing and functional space and make your client happy.
We’ll Build To Your Budget
Regardless of your budget, New Horizon Construction Services can work with you. We’re a licensed, bonded, and insured MBE general contractor in Central Florida with years of commercial building experience.
We’re equipped and qualified to tackle any project of any size and can work with tight budgets without sacrificing quality. Contact us today!
