How to Budget for Commercial Construction in Calgary

Are you preparing to build a commercial building in Calgary? You may want to create a store, a restaurant, or an office, and that can be exciting! However, before anything is constructed, you must find out how much money it will cost. This is referred to as making a budget. A budget is a plan for the amount of money you will spend. Here in this blog, we will describe in easy steps how to create a reasonable budget for commercial construction in Calgary. This will save you money, prevent errors, and get your project completed on schedule. Let’s begin!

Know What Kind of Commercial Construction in Calgary You Want

Before you discuss money, you must know what you’re constructing. Ask yourself the following questions:

• What type of building is it? 
• How large will it be?
• What do you want inside the building? 

Having this information allows you to plan out how much everything will cost. If you decide later, it will cost you more. So, be as specific as you can from the start.

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Find Out About Calgary’s Construction Prices

Commercial construction comes at a price. Certain things may cost more here compared to elsewhere. Generally, constructing a commercial area in Calgary can go from $220 to $280 per square foot. A few of the things that influence the cost are:

• Weather: Winter could slow down the construction work.
• Labor: Laborers could cost more if there are not enough of them.
• Materials: Wood, steel, etc., fluctuate in cost.
• Permits: You must get permission from the City of Calgary to construct. This is expensive as well.

Ask local contractors or look on the Internet to see what the latest costs are.

Learn Hard Costs and Soft Costs

There are two kinds of costs: hard costs and soft costs.

• Hard costs are for items you can hold in your hand, such as bricks, windows, floors, and the people who construct the building.
• Soft costs are for items such as lawyers, designers, permits, and insurance.

Both are essential, and most people overlook soft costs, but they may account for 20–30% of your overall budget.

Include a Safety Fund or Contingency

Even when you have everything planned out, the unexpected occurs. The cost of wood may increase. There may be a snowstorm that will push work back. That’s why clever builders always include a “contingency fund.” This is additional money reserved for unexpected things. A good general rule is to put in 10–15% of your budget for commercial construction in Calgary, just in case.

Consider How You’ll Pay

Most folks don’t pay for the entire project with their cash. They borrow money from a bank or a lender. This is known as financing. Therefore, to obtain a loan, you will have to:

• Show your budget
• Explain your plan
• Share drawings or blueprints of the building
• Prove the land is ready for building

In Calgary, it is a good idea to work with a local expert or real estate agent. They understand the rules and can help you get the money you need.

Get Quotes from More Than One Builder

Don’t hire the first contractor you find. It’s smart to get 3 or more quotes. These are written estimates that tell you how much the builder thinks the job will cost. Ask questions like:

• What does this price include?
• How long will it take?
• What happens if there are delays?
• Do you have experience building in Calgary?

Choose a builder with good reviews and much experience in commercial construction, like Sky Blue Construction.

Consider Future Expenses

Once you construct your building, you will continue to spend money to operate it. These are operating expenses. Some examples are:

• Electricity and water usage
• Heating and cooling systems
• Snow plowing in the winter
• Cleaning and trash pickup
• Insurance and property taxes

If you prepare for these ahead of time, you will avoid headaches later on.

Keep an Eye on Your Budget While It Is Being Built

Forming a budget is not a one-time task. You must monitor it regularly. After the building begins, go to the site. Speak with your project manager. Find out how much has been spent and what remains. So, document any changes in writing and have everyone sign off on them. We refer to this as a change order. It keeps the process honest and prevents arguments.

Understand the Local Regulations

In Calgary, you have to obey the local building regulations. These regulations exist to protect people and the city. You will need:

• Permits from the City of Calgary
• Plumbing, electrical, and fire safety approval
• A plan that obeys Calgary’s zoning regulations

If you break the rules, your project can be stopped. That’s why it’s helpful to have local contractors who know the drill already.

Get Help Today!

Commercial construction in Calgary is a huge responsibility. You don’t have to do it by yourself. Experts from Sky Blue Construction can help. They can help you stay on budget, follow the law, and finish your project on time. Hire them now.