Planning a budget is an essential component of construction management. New commercial developments can be especially complicated, with a huge array of budgetary considerations. Though each project is different, here are some common categories to include in your plans. 

How to Budget for a Commercial Construction Project

1. Property 

Before you can start building, you need to acquire the property to build on. This may include a vacant lot or a property that already has structures in place. 

In some cases, these structures can provide a solid base for you to start your project. In other cases, they may need to be removed, which represents an additional cost over the acquisition of the land. 

2. Materials & Labor

The actual construction of the building includes materials, equipment, and labor. Materials involve aspects like structural steel, lumber, and building finishes that will end up in the final product. 

Equipment may include bulldozers and heavy machinery that make it possible for a construction crew to adequately move materials. Labor is what is paid to the construction team for everything from site preparation to installing utility lines and electrical systems. 

3. Professional Services

Aside from the actual construction, you’ll likely need multiple professionals to help you plan the project and carry out the details. For example, architects and civil engineers can help you create a building design and make sure those plans are structurally sound. You may also need help with permit acquisition, zoning changes, and building or property insurance. 

4. Contingency

Almost every construction project has something unexpected come up. There may be damage to the property, equipment that breaks down, or a disaster that stops the process altogether. Building in a small buffer of 5% or 10% into your budget can help you stay on track even when small issues arise.

The Coconut Grill Commercial Project, Tarchitects

Project Scope: Architectural Design, Interiors, Electrical and Plumbing, and Construction Administration

If you’re planning a new commercial development and need help with architecture or construction management, contact Tarchitects LLC. Based in Atlanta, GA, the company works with clients throughout Georgia, Michigan, Alabama, Minnesota, and Indiana. The team of knowledgeable architects can design every aspect of a project and then facilitate the construction management and development. Visit the website or call (844) 409-0044 to request a consultation.