Before any commercial construction project begins, a budget must be created. Even if it’s as simple as a fixed number inside the prime mover’s head, there must be some sort of idea of how much things will cost before any ground is broken. Of course, we’d never recommend a commercial construction budget that resides solely in the mind of the main instigator. However, that would be preferable to having absolutely no idea of the costs whatsoever. To ensure a project is successful, it’s important to know how to budget for your commercial construction project. Let’s see what’s involved.
Establish A Cost Ceiling
Knowing the maximum amount you want to spend on your commercial construction project is the first step toward creating a budget. Once you know the absolute highest amount of money you want to spend, you can begin looking at other practicalities. Establishing a cost ceiling gives you a baseline from which to work and will allow you to determine whether the following steps are feasible.
Create A Contingency Fund
Once you know you’re able to spend X amount of dollars, put aside 10 to 20% of that figure to act as a contingency fund. If there’s nothing else that’s certain about the commercial construction industry, it’s that things will cost you more in money and time than you first expected. Without a contingency fund, you may find yourself tantalizingly close to completion, but without the time or money to get the job done. Take care of this scenario before you even begin.
Get Supplier And Labour Estimates
You know what you want to do and you know how much money you have to do it. Now go out and speak to the people who will supply you with the materials and labour to get the job done. In fact, speak to as many different suppliers and labour forces as you have time for. You want to find those who can help fulfill your needs for the best possible price. Of course, you may already know many of these organizations and people, but it pays to shop around.
Compare With Similar Projects
No two commercial construction projects will ever be the same, but you should be able to learn from previous experiences. Or if you’re undertaking something entirely new, speak to those who do have the experience. Taking a detailed look at similar projects can help save you money and avoid costly mistakes.
