WorldExecutivesDigest.com | Tips to Save Money on a Commercial Renovation | Businesses are in a unique position right now, as they’re facing declines in revenue because of the coronavirus pandemic.
At the same time, it could be possible for businesses to look at ways to come back stronger than ever when there is somewhat of a resolution to the pandemic. As part of this, businesses might be eyeing commercial renovations.
You might also be looking at this as an opportunity to start a new business to perhaps fill a need during a challenging time, so in this situation, you might also need to invest in a commercial renovation.
There are ways you can save money on a commercial renovation, such as working with commercial suppliers and vendors who you can build a relationship with, ensuring competitive pricing.
Beyond that, the following are some tips to save money on commercial renovation.
Choose the Right Contractor
One of the best things you can do for a commercial renovation in terms of saving not only money but also time is choosing the right contractor from the start.
Your contractor can make or break your project.
If you choose someone just because they claim they’ll be cheapest, without considering other factors, you’re likely to see delays, unexpected expenses, and even legal issues.
However, if you take your time to find a contractor with a good reputation, then they’ll help you identify potential opportunities for saving money and will also be able to make sure your project stays on track.
As you’re working on finding a contractor, you always want to keep your overall objectives in mind. For example, is your goal to bring your business up-to-date in terms of technology, or are you more focused on aesthetics?
Having a handle on why you’re taking on a project can help you clearly convey your goals to potential contractors.
Don’t Veer Off Your Budget
One of the things you’ll need to be clear on before you even start talking to contractors about a commercial project is your budget.
Your project will likely have change orders throughout, but you still need to have a clear, defined budget in place, and you need to stick with it to the best of your ability.
Within your budget, put in place contingencies. This will help make sure you can deal with unexpected costs, but without veering too far if at all off your budget.
Usually in a commercial renovation, you should plan for around 10% in contingency for the design and building parts of the project.
You will likely get fixed cost and cost-plus proposals for your commercial project.
Know the difference between the two.
Fixed price is known as a lump sum proposal and the idea of this is that your contractor will complete a certain amount of agreed-upon work for a certain price. There is an estimate of labor and materials and no matter how much it costs, your contractor has agreed that this is what you’ll pay.
A cost-plus proposal is also known as either an estimate or a time and materials proposal. This type of approach provides a line accounting for the entirety of the project.
You don’t agree on a set price, and instead, you are billed for the costs of the project.
Minimize Change Orders
When you have a budget for a commercial construction project, one of the things that’s likely to cause it to veer off-track the most is change orders.
A change order occurs when there’s something that needs to be added to a project that wasn’t anticipated.
There are many different reasons a change order can happen.
It can be simple, such as needing to move an outlet, or it can be much more complex. For example, a design element that was initially planned for might not work out in reality.
You can’t necessarily avoid all change orders, but the best thing you can do to protect your budget and your timeline is make sure you plan very carefully before you dive into any of the actual work.
If you have concerns or questions for your contractor, don’t wait to discuss them because this is going to increase the likelihood of a change order.
Finally, look for clever ways you can save money when it comes to materials. A good way to do this in a commercial project is to reuse whatever you can from the original building features.
There may be opportunities, for example, to reuse flooring and plumbing, so let your contractor know you’d like to do this whenever it’s an option.