Never underestimate the vital details involved in building budgets, and this applies to every sector in any industry, but for now, we’re focusing on commercial construction.
1. So why budget?
With any development you must do your homework, this requires research and most importantly speaking to the right people. Assuming, you own the property any commercial project must have a return on your investment to be viable.
What we need to define is who you must consult with to have the right outcome and in no particular order they should be:
- Bank Manager
- Commercial Lawyer
- Real Estate agent
- Quantity Surveyor
- Town Planner
- Contract Consultant
- Private certifier
2. What you need to know
We would prepare a project plan and script the process of goals to be achieved. The planner would include the following research to achieve your desired outcome.
3. Market Demands
Investigate what would provide the best return, demographic, population growth, industry, infrastructure, identifying opportunities and more importantly the risk.
Ensure you have the financial capacity and how will the development be funded.
4. Planning and Design
- Designing a cost-efficient build
- You need to factor the cost of the builder based on the level of quality inclusions
- Remember form follows function
- Excavation costs and demolition fees should never be underestimated
- Energy efficient designs cost more up front
- BCA requirements (Building Code of Australia)
- Design, consultants and required fees or contributions
- Know what you are permitted to build
- Have a contingency in your budget for any blowout of costs
- Can you build under complying development or development application combined with construction certificate
5. Construction Phase Planning
- Research commercial builders with experience
- Check with local council for any site restrictions
- Have a pre-lodgement meeting with council
- Access to the site is important
- Construction programming is critical
- Make sure to allow for wet weather delays
- Challenging projects cost more so keep it simple
- Prepare a conceptual design
- The best quality design documents will give you the most accurate price
- Try to use local contractors when pricing
- Hiring an expert builder can be an investment, they also would generally only use skilled and reliable tradesman
As we said, having a budget is crucial to a smooth build. We highly recommend allocating a contingency plan to allow for unexpected expenses and mishaps that may occur along the way.
We hope this helps you to stay on track so your build goes smoothly. For more information or to get in touch, contact us today!