How should hospitality, retail and office businesses budget for a commercial fit out? Photo: Moltus Construction.
There are many different priorities to factor in when to comes to budgeting for a commercial fit out. With design, management, construction, furniture and more to consider, there’s a lot to think over, but every element is important.
Canberra experts Mayukah Senanayake from Moltus Construction and Mark Nicholls from Raine & Horne Commercial have years of experience in the fit out game. They divulge their best tips for creating a realistic budget and avoiding common mistakes that could derail your financial plans.
Confirm your fit out type
There are three main types of fit outs: shell and core, category A and category B.
Shell and core fit outs are a blank canvas to build on. The outside of the building should be complete at this stage, but inside will usually be a bare construction site with simple concrete floors and walls.
Category A or hard fit outs deal with essential infrastructure including flooring, walls, fittings, utilities and safety systems. Category B or soft fit outs follow up with the aesthetics, such as furniture, branding, artwork and extra amenities.
Find an initial figure
When drafting your initial budget, calculating your square meterage is the first place to start. Taking wall measurements as well as floor dimensions will give you a better idea of the total scope of your project.
“I always recommend employing a project manager to oversee your fit out from start to finish, so factor that in early along with design and approval fees,” Mayukah says.
“Construction costs, including any demolition works, should be next. Then you can look at materials, furniture and fittings.
“It’s also a good idea to set aside some extra funds if things don’t go to plan. You don’t want to get stuck if ripping up old carpet uncovers extensive water damage.”
Get that concept design sorted
A good concept plan is the foundation on which the rest of your project is built. Be ready to work on as much detail with your designer as possible, including brainstorming ideas and creating a vision board.
Don’t forget to analyse your base building
Plenty of business owners forget to factor in upgrades that might need to be made to the current building to achieve their preferred design.
“These upgrades will need to be made before anything else and can depend pretty heavily on the kind of business you’re running,” Mayukah says.
“A cafe with a cold menu probably won’t have as many prerequisites as a fine dining restaurant or burger joint, but they all need proper plumbing, gas, electrical and HVAC systems.”
Other base building upgrades include basic lighting, ceiling, door and wall finishes, disability access, fire safety and security systems.
Approach the right contractors
Finding the right contractor is all about their experience.
“This is particularly important for fit outs that require specialist equipment or amenities, such as for a medical office or commercial kitchen,” Mark says.
“These kinds of fit outs will also cost more than ‘average’ online figures suggest. Be sure to shop around for competitive quotes and choose a contractor with plenty of experience working for your particular industry.”
Avoid these pitfalls
“Make sure you negotiate enough of a rent-free period with your building’s landlord to avoid paying for rent prior to the completion of the fit out,” Mark says.
“Try to leave more time than you think you’ll need, as fit out periods regularly blow out.”
You can afford to pinch pennies in some areas if you’re working with a tight budget, but compliance isn’t one of them. Never try to cut corners during category A works.
“The construction phase has to be done right, not only for legal reasons, but to ensure your space functions well,” Mayukah says.
“The best time to save money is when you’re considering furniture, flooring, joinery and decorations. If you have to go back in and update your electrical systems later, it’ll just cost you more and disrupt your operations longer.”
Raine & Horne Commercial Canberra specialises in the sale and leasing of commercial properties.
Moltus Construction is a commercial construction, fit out and refurbishment company that caters to a broad variety of clients and sectors within the construction industry.
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