Understanding Build Out Costs and Planning Appropriately

Understanding Build Out Costs and Planning Appropriately

Planning an office build out can be challenging. Not only do you have to come up with the optimal design for the space, but you also have to estimate and plan the cost of the project and try to stay in budget and on time to see the project to successful completion. Of course, this means you need a designer, possibly an architect, as well as a contractor and construction company. And, from each one, you need prices quotes for the overall project as well as line items that need to be included in that estimate.

A Perillo Construction, the professional team offers full service interior contracting and consulting with the promise of the highest quality build out projects completed on time and within budget. They have the well-established professional relationships with architects, designers, subcontractors, and supplies to ensure your project is completed to successfully to your specifications. With that in mind, Perillo Construction offers these tips to help you understand build out costs and plan accordingly. From overall expenses to unique line items, here’s what you need to know for your build out.

Build Out Budgeting

Because every project is unique, many of your costs will be specific to your build out. Consulting with construction professionals will provide the accurate estimate you need. Here is an overview of what budgeting categories common among build outs.

  • Hard Costs – These costs include actual physical changes to the space. Hard costs might include demolishing or installing new walls, painting, flooring, new doors or windows, and upgrading the buildings’ electrical, plumbing, or HVAC. These costs will account for the majority of your project’s budget – up to 85 percent. Hard costs vary, depending on the finishes you want as well as the depth of the renovations needed, but when your contractor or project manager knows the details of your project, he or she can deliver an accurate estimate of your hard costs.
  • Soft Costs – These costs aren’t physical changes needed for your space, but the cost of services and expenses needed to get the project completed on time. Soft costs comprise up to 12 percent of your project’s budget and may include permits, legal fees, architecture designs, and the like. These costs are more easily estimated but do vary based on the scope of your project.
  • Vendor Costs – Vendor costs are miscellaneous expenses needed for your project and generally account for less than 10 percent of your budget. Like hard and soft costs these vary depending on your overall project and might include moving costs, signs, security, or specialty cabling.
  • Contingency Costs (aka Contingency Allowance) – Unexpected expenses always arise in a build out project and your contractor or project manager should provide a line item for contingency costs in your budget. These cost estimates are also contingent on variables of your project but are often estimate around 10 percent of your budget. In most cases, these estimates will be lower in a new building than in an older building.
  • Project Management Costs (aka Project Management Fee) – This is exactly what it sounds like, the costs for your project manager or contractor to oversee your build out. Costs here vary, again depending on your unique project, but often are estimated at 5 percent of your overall project costs. Remember, you are paying for their expertise, and though at first glance it may seem an unnecessary expense, that expertise will likely help you avoid costly missteps and save you a considerable sum during the completion of your project.

When you are ready to begin, call on the team at Perillo Construction to get an accurate estimate for your buildout planning and budget.