When it comes to building a solid foundation for your commercial construction project in Houston, the true test of strength lies in developing a solid budget plan. Getting a project’s budget can lead to a seamless project and exemplary outcomes, but getting it wrong can be detrimental to your project as a whole. Given Houston’s dynamic market, this is even more significant because the city’s booming economy, severe weather, and unique permitting requirements are well-known.
By understanding the vast importance of a padded budget and learning how to accurately create the budget for your project, you can ensure optimal success and productivity. The process can be overwhelming, but when working with a professional commercial construction company like Keeton Construction Services, you can be sure to get your project off on the right foot.
Preliminary Planning and Research: Why it is Crucial for Your Commercial Construction Project
The most important step for creating a strong budgeting plan for your commercial construction project is the preliminary planning and research. Firstly, it’s vital to begin by clearly and thoroughly outlining your project goals. This could include things like how you’ll use it, what materials you need, and your deadline for completion.
The type of project you are venturing into can also affect your projected budget. By defining your project as either a new construction project, a tenant improvement, or a minor renovation. Bigger projects require not only significantly larger funds, but also a more detailed plan. While having a detailed and specific budget is crucial for turnkey projects, being flexible and open to changes is also necessary. In a dynamic environment like Houston, anything can happen overnight, so shifting deadlines and resources quickly can help the project run more seamlessly.
It is vital to have an understanding of Houston’s booming commercial construction industry and market. The primary factors that contribute to the cost per square foot (PSF) include the type of building the project is for:
- Office buildings: Typically, these buildings’ budget falls within the $150 to upwards of $400 PSF. This is also dependent on how many stories the building will have and what architectural features it requires.
- Retail space: For these projects, the PSF cost can be $120 to $300 or more. The cheapest side of the spectrum would be basic strip malls, while standalone stores are typically more expensive.
- Warehouses or industrial facilities: This type of Houston commercial construction project can typically cost around $80 to $200 PSF – making them the most affordable type of commercial construction project.
- Medical facilities: Oftentimes, this can be a more specialized construction project. Because of this, expect PSF costs to live in the $250 to $500 range.
Why Working With a Professional Houston Construction Company is Crucial
Your project and its budget are only as good as the team behind it. At Keeton Construction Services, we constantly strive to help our clients find the perfect solution for their commercial construction needs. Having expertise from professionals within the construction industry can not only help the physical aspect of your construction process, but also your management and budgeting sectors. Our team can offer local insight to the Houston construction market that will be invaluable to your project and budgeting goals.
Aside from just choosing a reliable and trusted commercial construction company, there are also a myriad of crucial roles that make up a successful team – including architects, engineers, and administrative support roles.
Construction Expenses: Examining Hard Versus Soft Cost Distinctions
When you begin establishing your commercial construction budget for your project in Houston, it is important to know the differences between hard costs and soft costs. This helps you visualize areas within your budget that can be a little more flexible, versus aspects of your project that you might consider adding more financial padding for in case of unforeseen circumstances arising.
Hard costs include factors that are tangible expenses. Often including steel, lumber, and concrete. These materials are constantly experiencing pricing fluctuations due to export and import prices or supply and demand. Along with these vital materials, hard costs also include on-site labor, something that can take up a large portion of your budget depending on the building project type and location. Some projects may require significant construction site prep work as well, which can further increase costs. Lastly, similar to building materials, systems within the building, like HVAC, electrical, plumbing, and fire equipment, are vital hard costs you cannot cut corners on.
Soft costs are budget aspects often overlooked, such as permitting and fee costs. The city of Houston requires permits for all commercial construction projects within its limits. You may also encounter unexpected costs for your construction project, such as insurance. Builders’ risk insurance is one example, but it’s common for plans to greatly increase depending on what kind of project your team is budgeting for.
Planning for When the Unexpected Occurs During Your Commercial Construction Project
Regardless of how well-executed your commercial construction project plan is, there can always be roadblocks. Because of this, developing a contingency plan for your Houston commercial construction project is crucial to help you avoid budget blowouts due to avoidable events. The most common reasons for sneaky hidden expenses are:
- Site-specific challenges: When it comes to Houston-specific commercial construction projects, like poor soil conditions, draining concerns, or flood zone compliance, can quickly derail your deadline and budget.
- Change orders: This is another term for changes to the plan that come later into the planning project. In many cases, these can include late fees or fines that can be expensive.
- Permit delays: It is a well-known fact that permitting in Houston can sometimes be a lengthy process. This can impact your project by cutting into your deadline and potentially your budget.
- Weather events: This is an especially pivotal aspect of planning your commercial construction project in Houston. In a city that is known for its split-second weather changes and notorious flooding, planning for the unexpected when it comes to weather delays is a responsible practice.
It is recommended to allocate 10-15% of your overall budget to unexpected costs to cultivate the most efficient outcome possible. Keeton Construction Company has been completing successful commercial construction projects in Houston for decades, making our team integral for local insight and expert recommendations.
The Value of Collaboration: Why Opt for Professional Commercial Construction Insight
Completing a successful commercial construction project in Houston can be a rocky road. But when your foundational budget is well-planned and carefully executed, you can be sure to yield the most optimal results, no matter the size of your project. Every project is vastly different. Type of building, location, materials, overall vision, deadline, and budget are just the basic factors that impact the potential struggles. By working with Keeton Construction Services, you can ensure your project’s success is boosted with our team’s strategy, insight, and reliability. We value collaboration, honesty, and hard work– so let us help you reach your goal while keeping your budget locked in.
Contact us today for a free commercial construction consultation for your project in Houston.