4 Categories to Consider When Budgeting for an Office Build-Out

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Your office space may be the first impression customers receive. You want a space that inspires confidence, attracts customers and personnel alike, and is customized to your specific needs. But determining how much it costs for commercial construction on an office space build-out can be difficult. When deciding how to proceed there are many factors to take into account.

1-Hard Costs

Though some hard costs, such as paint and carpeting, may be covered by the landlord, others, like walls, windows and doors, may not. It is advisable to have a tenant representative with you when negotiating the lease contract with your landlord to make sure the costs of the build-out are agreeable to all parties. When determining your budget, allow approximately 75-85% of it to go toward these improvements.

2-Soft Costs

One of the first things you need to get underway is the architectural design, which is covered by your soft costs budget. Your build-out cannot proceed without this to help plan the timeline and costs. Permits and legal fees are also considered soft costs. Estimating these expenses is usually fairly straightforward and accounts for about 8-10% of your budget.

3-Service Providers

These costs will be specific to your location but may include things like signage, cable or security. Also included in this section is management fees. You could try managing the commercial construction yourself, but hiring a project manager will likely save you money. Managers help avoid mistakes and keep the project running to schedule, and help quickly resolve problems that arise. These costs will add up to 8-15% of your funds.

4-Rainy Day

You never know what might come up, and no project ever goes to plan. It is wise to save 5-10% of your budget for the unforeseen.

With some wise planning and management, your office space could become a reflection of your company’s vision. Contact a commercial construction company today to get started on your future.