Stay on Budget – Tenant Improvement

Stay on Budget – Tenant Improvement

As you plan and prepare to buildout your new office space, one of the most difficult task is staying within your tenant improvement budget. Like any budget, personal or business, so often, we keep adding details until we are totally outside of the allotted amount. In similar fashion, once you sign your lease agreement, the tenant improvement budget for your buildout is in place. In order to stay on budget, you’ll need to create, manage, and implement a comprehensive buildout project. Staying on budget is no easy task, but here are some tips to help you accomplish the task.

Establish the Budget at the Start

The firm you chose to design your space and build it out should be at the beginning your budget. Your tenant improvement amount plus funds, if any, which you will be putting toward the buildout will be your overall budget for the project. Keep in mind that not only will your project include construction costs, but also moving into the space, design and project management fees, furniture and equipment, fixtures and cable or telecom or IT needs. Your design team needs to know exactly how much money they have to work with, so they can develop a great space for you while staying withing your budget constraints.
While you may think this might create issues, instead your design team will actually appreciate having the budget parameters at the start. A design team driven by quality and service to you, their client, wants to achieve your goals and objectives while staying within your budget, and having that information helps them accomplish the task successfully.

Stay on Top of Your Budget During the Project

Even when you have established a budget, unexpected changes can occur, and you should include a contingency plan just in case. Your design team should provide preliminary pricing on your project throughout its development. When changes happen, follow-up to ensure your original parameters for pricing are still in place and being followed. And should some parts of the project result in high prices than originally planned, talk to your project manager about making changes while maintaining the look and function of your plan.

Limit Employee Design Participation

While some employee participation in the design process is desired, it is best to get the opinions of select employees, one from each department and one from each employee type is best. Not all of your employees will be budget conscious and may attempt to use it to develop their personal work wish list. Also, if you seek input from everyone, should you fail to use every suggestion, you may face the backlash of your employees. Another option is to ask for input regarding special design features, asking employees which they would prefer when all options can’t be included in the buildout.

Examine High Cost Options

Depending on your business or industry, you may need high cost components in your buildout (laboratories, data rooms, etc.). You’ll need an industry advisor to help, who can provide you with comparison pricing as well as a cost breakdown for upgrades. If you find the pricing significantly higher than expected, do your own research to make sure the costs are justified.

Call on Perillo Construction to Keep Your Buildout on Budget

A professional build out team, like the team at Perillo Construction has the knowledge and expertise to keep your buildout on budget. Each job is meticulously planned, keeping you informed every step of the way to ensure your project is completed on time, within your budgetary requirements, featuring the highest quality materials, every time!