Starting a new business venture and estimating a construction budget is a daunting task for those who aren’t accustomed to the ins and outs of the construction industry. For those who are new, you may not know which line items should be included in your cost estimates, or even where to start. That’s where we can help!
Interior Buildouts vs. New Construction Projects
An interior buildout is cheaper than a new construction project because it will only change the existing commercial structure into your envisioned space.
Costs vary depending on conditions of the existing space, quality and types of building materials specified, local permitting requirements, professional services that are required, and delineated work scope responsibilities.
Price ranges start from $50 per square foot to $200 per square foot.
A new construction project consists of finding a plot of land and building it from the ground up.
Costs vary depending on your local regulatory agency requirements— which include impact and permitting fees, land and other civil improvements, in addition to professional services, quality and types of building materials, and delineated work scope responsibilities needed for every project.
Price ranges start from $150 per square foot to $450 per square foot.
At Hurd Construction Management, our free commercial build out calculator will show you the ranges in prices of an interior or new construction buildout, to help you determine the right budget and timeline for your project.
A Deeper Dive into Construction Budget Categories
When you’ve figured out what type of project you’ll be starting, you can now start calculating your commercial build out budget based on the specific associated costs of your project.
Hard costs typically include physical changes to space. This can include walls, electrical, windows, etc. Hard costs will most likely take up about 75 to 85% of your total budget, and depending on the finishes of the upgrades you want, varies in price.
Soft costs differ drastically from hard costs; they refer to the architectural designs, permitting, legal fees, and other expenses and services that are necessary to complete the project itself. Soft costs account for roughly 8 to 12% of the entire project cost.
Vendor costs are made up of a variety of miscellaneous expenses including cabling, moving, signage, and more. Similar to hard costs, these prices are dependent on the actual project. They can take up about 5 to 10% of your overall budget.
In the occurrence of unexpected issues, we recommend having a contingency allowance to cover these expenses. Your contingency allowance truly depends on the space itself and how likely you are to encounter unexpected expenses.
Project Management Fee
The last component is the project manager’s fee. This accrues about 3 to 5% of your overall cost, but once again, can depend on the size and scope of your project. Having a good and reliable project manager will end up saving you money in the long run and can help you avoid making mistakes that can eat up your budget.
Looking for a Construction Management Company to Handle Your Next Project?
Estimating commercial construction costs is overwhelming, but at Hurd Construction Management we can provide construction project planning, management, and delivery on par with your needs and budget.
We are a licensed commercial general contractor serving Florida, Georgia, and the southeast United States. We specialize in commercial office, retail, restaurant, medical, and multi-family markets.
Our mission is to fulfill the demand for high-quality, resource-efficient commercial real estate and construction management services by being a trusted provider of smart, integrated CRE solutions for clients throughout the southeast United States, and the world.
To learn more about our commercial build out calculator, visit our website, or call us at 866-231-2477.