Commercial Construction - How to Breakdown the Costs

Commercial Construction – How to Breakdown the Costs

The first thing to do when breaking down the costs of commercial construction is to find out everything you can about this specific project and its geographical location. You must know exactly what kind of a building it will be and what types of businesses will occupy it. Next you must know everything you possibly can about the location it will be in. What kind of architecture is prevalent there? What is the weather like? The answers to this question are important because you must ensure your project will safely accommodate any type of people that will frequent it. You should also be familiar with any local ordinances that may dictate what kind of structure it can be. Once you have the answers to these questions you can estimate the different costs that will be involved in constructing it. What are those individual costs? We will now take a look at them.The key factor here is the cost per square foot. In determining this it is a good idea to have an understanding of the community this project will be in. That is because; in order to figure out YOUR budgeted costs per square foot, you should know how much will be charged to each tenant once the project is complete. In other words, you need to know how much of a profit you will get back in return upon its completion. There are research sources you can access on the Internet that will give you an estimate of the square footage involved in constructing various types of projects, as well as by the different regions of the world. The data provided by these websites is quite extensive and will be of much assistance to you.The next factor we will examine is the cost of the construction materials for your pending project. This is another thing that will vary greatly; depending on who you purchase your supplies from and once again, where they are physically located. The type of materials you intend to use for your building will also help determine your costs. The costs of a building made from concrete will differ from those of one built from steel. If you have a lot of glass or marble or other more elaborate materials on the outside, the costs of those will enter into your bottom-line. What about the surrounding grounds of this building? Will it contain more grass and trees or bushes? Will it feature rocks and stones of differing sizes and types? Will you have any water features like a fountain, small lake or pond or anything like that? All of these things you intend to include in the construction of your commercial project will surely enter into your costs.Another thing that will contribute to your costs is whether or not there are structures already located where you wish to build. If there are, there most likely will be the cost of demolishing the other structures. After all, that sort of an activity will not be done for free. You may need to pay for that up front, include those costs when it comes time to earn your money back once construction is complete. There may also be permit costs and other legal fees associated with eliminating other buildings. You must consider these as well.