Most businesses at some point will be considering either a fit out or a refurbishment of an office space. Most commonly this is to accommodate an expansion of the business or simply just to refresh outdated layouts and culture.
Much like any other business decision, it is critical to not only understand the costs involved but also the reasons behind those costs. By understanding the financial implications, your business can budget better, analyse return on investment (ROI) and make better-informed decisions on achievable project scope.
In this blog we will be taking you through 5 factors that influence the cost of fit out and refurbishment and provide a more detailed insight into why:
- Size of the Space
- Specification of Finishes
- Project Location
- Speed of Project
- Existing Building Condition
Factor 1: Size of Office
Let’s kick off with one of the most obvious ones. If you are going to fit out or refurbish a larger space, it’s going to cost you more than somewhere half the size. This is mostly down to the required quantity of materials, increased amount of labour and generally longer project timescales to undertake the work.
Every extra square foot adds to flooring, partitioning, ceiling, lighting and furniture costs. Sometimes even minor increases in size can result in a disproportionately higher cost. For example, a taller ceiling could require bigger sizes of studwork, larger sheets of plasterboard and the addition of deflection heads.
On large-scale projects, however, it’s worth considering the economies of scale, which can reduce the cost per square foot for large quantity material orders. On the other hand, extremely small and/or oddly shaped spaces may be less efficient to fit out and drive up this figure.
Factor 2: Specification (Level of Finish & Features)
There are a broad range of levels to which office fit out or refurbishment can be finished; this scope factors in materials, paints, furniture, tech, etc. It goes without saying that the higher the specification of finishes which feature in the design, the more expensive the fit out will end up being.
It’s important, however, to not overcut costs. Premium flooring, high-performance acoustic partitions and well-designed lighting will be more expensive than standard, yet will significantly enhance the look, feel and functionality of your workspace.
Additionally, initial lump costs can reduce running costs later down the line. Technology integration, such as AV systems and sustainability-focused features, such as instant hot water taps and motion sensor lighting, are more costly to install but will have a positive impact on long-term running costs.
It’s not just a case of picking a certain specification and running with it; it’s all highly customisable to suit your specific needs. It’s not always necessary to choose the top-tier or low-tier option for every element. The best approach is to try and strike a balance between functionality, style and budget across a range of different elements in the project.
For example, you may choose to invest in higher specifications for client-facing meeting rooms where soundproofing and privacy are important. And then balance this with lower specifications for the “back of house” meeting areas, where sensitive conversations are minimal and the need for first impressions is not necessary.
Factor 3: Location, location, location.
Location can have a huge impact on the overall cost of an office fit out as costs can vary widely depending on exactly where you’re situated in the country. The main factors affecting this change are the local labour rates and local market demands. Offices that are situated in major cities often incur higher labour and logistical costs when compared to more rural locations.
Location can also refer to access. This encompasses restricted access, limited loading bays or an out-of-hours working environment, all of which can increase labour costs. Deliveries may also need to be scheduled outside of normal working hours, again potentially increasing costs. However, even in an ideal location, a tight deadline can quickly drive up costs, leading us on to our next factor.
Factor 4: Programme Speed (Schedule)
The speed at which your office fit out needs to be completed can have a significant impact on cost. Compressed timelines often require additional resources. This can include factors such as overtime for tradespeople or hiring extra staff, which can quickly increase your budget. Expedited delivery of materials and tight scheduling can also add to costs, particularly for specialist finishes or technical installations.
Whilst a faster programme may get your team into the space sooner, it usually comes at a cost premium. Conversely, a carefully planned schedule allows for better cost control, efficient labour allocation and more consideration given to the selection of materials without compromising quality. Engaging professionals early in the process is the best idea. It helps balance speed, budget, and quality, ensuring your project stays on track without unnecessary surprises.
Factor 5: Existing Property Condition
Across the full scale of office fit out projects, every client has a different starting point. To start the fit out of a building, there are often preliminary or enabling works. This is why the condition of the property is often a big factor in the overall cost. The older and more poorly maintained the space is, the more preparation work is required to bring it to a base level where the fit out can begin.
Issues that often come up include:
- Asbestos Removal
- Outdated Electrical and Mechanical Systems
- Water Leaks
- Severely Damaged Surfaces
- Structural Repairs
Unexpected issues which are discovered during works can be even more damaging to budgets when not properly accounted for in advance.
It’s paramount to conduct professional building surveys as early as possible. This process will help identify any potential issues and challenges and avoid costly surprises further down the line.
Final Thoughts
It’s key to understand every financial decision your business makes and, furthermore, understand the factors which affect these costs. It’s this attention to detail which helps you stay on budget, by carefully considering each element of your project and making informed choices. This will allow you to strike the right balance between quality, functionality, and cost.
While early planning is beneficial, it’s important to seek professional guidance as early in the process as possible. At Avent Interiors we offer a full turnkey solution. This spans from initial space planning/design work through construction to office relocation and furniture installation. If you’re thinking of moving or refurbishing or even just want to discuss the options for your space. Get in touch today for a free site survey & no-obligation quotation.