Sqaure Foot Construction Costs
In the construction industry we often hear statements stating how much a certain project costs per square foot. That square foot price now becomes the basis to what all projects should cost.
Interesting. What really comprises that square foot cost number?
For example, did the "model project" have underground parking. Was the parking square footage included in the square foot price? Hypothetically speaking, if you were to build the exact same project in the neighboring city with no under ground parking your project cost would be cheaper, but your square foot cost would be higher. So you have a less expensive project with a higher square foot cost.
Another good example, would be if your "model project" was of a wood frame construction type, but moved to different state, it may now require a non-combustible construction type. This alone can impact construction costs by an increase of 10% to 20%. These are a just a couple of items that can be easily overlooked, but don't for get about items like Permit Fees, FF&E, Special Inspections, etc.
Not only is it critical to be able to identify all of the projects costs, but it is equally important to understand if the cost is a hard cost or a soft cost. What measures do you take to make sure your comparing apples to apples when comparing different projects? How do you ensure the costs are all identified and accounted for?
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