Coming up with the average construction cost for a project can be a challenging task, especially when the customer wants the number immediately.
Owners, project managers, and investors often want the construction cost per square foot of a project. To compare apples or apples and keep large projects manageable this is one of the best numbers. By working with an average cost per square foot, the price of project can be made simple.
However, coming up with an accurate number quickly can be the challenge.
With the current state of the building industry, you cannot afford to guess at numbers and many of the old “rules of thumb” just do not cut it anymore. When times were good you could get by with them, but not now. Your numbers need to be more accurate.
Otherwise, you risk losing business because you bid too high or bid to low and work for no money. Neither one is a great option.
So what is in the average construction cost?
Everything from materials to labor and even cleanup all added up then averaged over the size of the project.
This is good for large projects because it some areas require more cost than others. Bathrooms take far more work to build and materials than open office space. However, both are in most office construction projects.
As you upgrade one part, like better office spaces the average cost will also go up if you do not cut back in others. This enables you to track the costs of large projects with a simple number.
Then by comparing the average building cost for your project verse other projects you will be able to see how your building stacks up against other similar projects.
Knowing your average construction cost and working with builders who are able to quickly and accurately provide it has become a necessity for all construction.