What To Consider When Creating A Budget For A Commercial Remodel
Budgeting is one of the first steps of developing any construction project. The budget is the allocated amount of cash a customer is willing to pay for a desired construction project. Commercial remodels require a lot of attention when budgeting because it involves a lot of variables that contribute to the overall cost of your project.
When creating a budget for your commercial remodel, you need to consider your goals, what you are looking for (Project Features), what needs to be done (Regulations and Building Codes), and other influencing factors (Circumstances).
Business Goals
Why are you pursuing a commercial remodel? What are you trying to achieve? By determining your goals, you can determine direction for your remodeling project which will determine your budget and your project features. For example, your goals can be to improve efficiency in the workplace, or to expand. Perhaps, you may be looking to rebrand your business or to make it a more collaborative work environment.
Your remodeling budget should be adjusted to reflect your business goals. For example, if your project requires specialized features, its very large and complex, then you should allocate enough funds to make this project feasible.
Additionally, you want to consider a feasible and goal-oriented deadline for your project. However, this may be impacted by the contractor your hire, scope of work, permits and inspections, and materials needed for the project.
Project Features
Based off your goals, you should determine what you are looking for in a commercial remodel. Some factors to include is the type of building being remodeled and what you are trying to do. Another considerations are if the building is occupied or empty. Empty spaces make it easier for a contractor to work with. Ultimately, your building will impact the overall budget for your commercial remodel.
Next, you want to determine what features for your commercial remodel are necessary and which ones you can be more flexible with. Flexibility of choosing a cheaper or more economical options. Since construction projects can quickly eat up a budget with desired materials and required labor to fulfill consumer expectations.
Determine the level of quality you want for materials and finishes. Ultimately, the better quality, the higher cost per square foot you will pay. For example, if you were looking to install a fence along the exterior with wood rather than vinyl will help you save money. But may cost you more in the long run with required maintenance. By knowing what you want you can prevent paying for high mark up change orders later on.
Lastly, you need to determine who you need to hire. Whether you can hire an architect or an interior designer. Typically, an interior designer is much cheaper than an architect, however architects are needed for more technical and complex projects. Depending on your project and preference should determine which option you take.
Regulations And Building Codes
Unfortunately, you do not have the freedom to do whatever you like with your commercial property. There are rules and regulations that dictate, how your commercial property should be built, which should be considered for your budget. For example, you must consider zoning ordinances on whether your building will be allowed in the area or not.
Your commercial building must be compliant for building codes and local ordinances. Building codes are developed to ensure the safety, security, usability, and accessibility of a building. For example, the number of required fire sprinklers in a building, and required changes to plumbing and electrical.
Other Considerations are ADA Compliance and Seismic Retrofitting
ADA Compliance
One of the more important compliant regulations as of lately. ADA compliance requires buildings to be readily accessible for all individuals regardless of limitations. Which may require attention to walkways, entrances, bathrooms, and other common areas as a place of interest to make accessibility improvements.
Accessibility improvements include railing, ramps, parking stalls, lifts, elevators, open space for wheelchair access, and more.
Seismic Retrofitting
If your business is in California, then your building needs to follow seismic retrofitting laws. Seismic retrofitting requires all buildings to be reinforced to sustain seismic activity. This effort is to prevent casualties, injuries, and large property damage in a result of an earthquake.
As a result, seismic retrofitting should be considered if you want to have a more accurate budget for your commercial remodel.
Other Considerations/Circumstances
One of the most important considerations, is to determine the impact of construction on your operations. Some remodeling projects may require you to shut down, while others may not impact your operations at all. However, with any disruption, it can cost your business money. Therefore, your budget should be adjusted to protect your cashflow in a result of a shut down or a delayed project.
Other considerations will be based off your project and what you feel should be accounted for. It is always better to overbudget than underbudget. Just be sure to leave your business with enough cash flow to remain in business in the result of disruptions.
Summary: Budget Considerations For Commercial Remodels
Not every commercial remodeling project will be the same. Some budgets will be bigger while some will not. Ultimately, your budget will be influenced by your business goals, project features, regulations, and your project circumstances.
Use your best judgement and consider the worst-case scenario in developing your budget. Construction can be quite expensive and unpredictable. Therefore, the better you plan for your project the better.
If you feel like this is not the best time to pursue a commercial remodel, then you should probably wait if its not required for your business. However, if you are interested in a commercial remodel, then partner with JMF Commercial Construction today.
Partner With JMF Commercial Construction
JMF Commercial Construction is an experienced licensed contractor serving commercial and light industrial businesses, and HOA Property Management. We provide convenient and quality services to the Los Angeles & Orange County businesses.
To start your next commercial construction project today! Contact JMF Commercial Construction for an Estimate.
Email us at [email protected] or call us at (562)572-8354.
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