Commercial construction costs can span a huge range, based on the needs of the property owner and the specifics of the project. Some construction projects are very expensive, while others can be completed on a budget.
Commercial property owners who are concerned about the cost of their project can do many things to reduce their commercial construction costs.
At Litchfield Builders, we help commercial property owners understand the cost of their construction project. We've produced a number of publications designed to teach commercial property owners about the stages of commercial construction.
We know how important it is to create a quality product while working within the property owner's budget. For more information about taking on a commercial construction project, download our free publication: Sustainability & Green Building in Commercial Construction.
Understand the Cost Drivers
The cost of most commercial construction projects are heavily influenced by variables like location, building site, building design, type of materials and so on. Changing the cost drivers can dramatically influence the cost to build a commercial building.
Location
The location of a building site is often one of the first choices that the commercial property owner makes when trying to get a commercial building project underway. Real estate prices can fluctuate quite a bit from one location to another. Many variables can influence the value of a property, including:
- Proximity to well-trafficked roads
- Proximity to other businesses, clients and urban centers
- Presence of natural beauty
- Presence of natural resources
Property owners hoping to save money on their land purchase can shop around and work with a knowledgeable real estate agent.
Building Site
The condition of the building site also has a big influence on the cost of the commercial project. Waterlogged soil, previous construction and presence of a native animal species can all cause delays, which in turn can increase the money and time spent on a commercial building project.
Building Type
Buildings can be divided into different types, to be used for different purposes. The type and purpose of the building affects the design, number of doors, materials the building is made from and other factors that all have an influence on the total project cost.
Because the building type is so closely linked to the purpose of the building, this is not something that cannot often be changed without altering the entire project significantly.
Building Design
Building design is influenced by the building type and purpose, the aesthetic preferences of the property owner and the decisions made by the architect. Sometimes the building design can be changed quite a lot to conform to the budgetary requirements of the property owner.
Types of Materials
Some materials cost more than others. Steel, for example, costs quite a lot more than wood. Commercial property owners concerned about cost can talk to their construction contractor and architect to ensure that they're using budget-friendly materials.
Project Schedule
The faster and more labor-intensive the project schedule, the more expensive it is. Contractors charge more for labor when they're working around the clock. The best way to control this cost driver is to plan ahead and avoid situations that would require contractors to work day and night to meet a deadline.
Project Complexity
In-depth, complex projects are more expensive to build than straight-forward projects. Project complexity is sometimes related to the building type or purpose. Other times, project complexity is related to the aesthetics of the building. When it relates directly back to the aesthetics of the building, complexity can be controlled by the architect and commercial property owner.
Learn environmentally-friendly and energy efficient practices for commercial construction in Connecticut.
Importance of Value Engineering
Collaboration between contractor and architect is very important. By planning well in advance and by working together with key players, the commercial property owner can get what they want for a price they can afford.
Sometimes, the commercial property owner must make an up front investment in order to save money over a long period of time. Property owners who plan to use their structure for ten years or more find that investing money up front is worthwhile.
For example, property owners must pay more for a geothermal HVAC system than a traditional HVAC system. However, geothermal HVAC systems require little maintenance, do not rely on fossil fuels and are much cheaper to run. Over a period of about 10 years, an expensive geothermal HVAC system will start paying for itself.
Price Per Square Foot
With so many variables at play, price figures per square foot can vary wildly. Though there may be some resources online that will quote square foot approximations for certain types of projects, there is no way to know for sure. These variables are a part of the initial planning discussions.
The architect plays a critical role in determining projected expenditures, as does the building contractor. Both parties must work together to ensure that the project is affordable.
Finding an Accurate Estimate
Getting an accurate estimate requires careful planning. Architectural work is needed to help with the bidding and estimating process. This careful planning may require some investment on the part of the property owner. Spending time with the professionals up front can prevent budget problems later on in the project.
Find The Right Partner
There are many things that can influence the cost of a commercial building project. Everything from the location to the condition of the land, the aesthetic details of the building, the complexity of the building, the speed with which the building is created and other details all have an influence on the price.
Are you thinking about building a structure on your commercial property? Do you have a price estimate, or know how much to expect your project to cost? Leave your comments in the box below. We would love to hear more about your project, budget and what you're doing to control costs.
At Litchfield Builders, we have over twenty years of experience helping commercial property owners to create beautiful structures. For more information about how much your commercial building will cost, contact us for a consultation.
You can also download our free guide: Sustainability & Green Building in Commercial Construction.
