A Guide To Planning Your Office Renovation Budget
29 Apr 2021
Apart from design considerations such as incorporating one’s corporate branding into their office space, the cost of an office renovation is an important factor to account for. Since office interior design is a long-term investment, the organisation’s renovation budget must be carefully planned to ensure that the business can fully reap the rewards of a successful workplace transformation over time.
In an office renovation project, there are numerous details to iron out, which can easily bloat an organisation’s renovation budget without meticulous preparation. This article hence aims to serve as a guide to determine important factors to take into consideration during the planning of your office renovation budget. Here are three things that can help your company determine the cost of its office renovation project:
1. Outline desired goals and outcomes
It is critical to define your company’s desired goals and results for its workplace transformation before the renovation process. Is the company expanding to cater to a higher headcount, or is it downsizing to reduce the total square footage it occupies? Is the organisation remodelling its space to better articulate its updated branding guidelines? Or is the company adopting a new way of work such as the hybrid working model?
Answering these questions will help in determining office specifications such as the office layout, the number and type of amenities (such as meeting rooms and pantries) as well as what types of interior components & materials (light fixtures, wall paint, etc.) are needed. Doing this will ensure that there are minimal disruptions during the actual renovation process. Although some changes are unavoidable, having a clear set of goals ensures that they are not too significant or worse, necessitate a complete overhaul.
One of the best ways to outline your company’s desired goals and outcomes for an office renovation is to gather feedback from employees. Since employees spend the most time in the office, their needs should be adequately addressed so that the new office interior design can inspire them to be more engaged and productive.
2. Understand factors that impact the renovation cost
Once your business has defined its goals and outcomes, it will enable you to determine which factors you will need to spend on, and which ones you can save on. Here are several factors that typically affect the office renovation cost:
The building the office is located in – Rental rates and lease periods are heavily influenced by factors such as the location, age, and condition of the office building. In addition, these factors may also pose structural limits to the design, such as whether the ceiling is open or covered, and the ceiling height. Additionally, these factors may also affect Mechanical & Electrical (M&E) cost considerations – which will impact the office renovation budget.
The type of materials & finishes used – This can depend on how your business would like to express its brand identity. For example, this global travel technology company showcased its focus on nature by incorporating biophilic design elements in their workplace such as using furniture made from natural materials, organic shapes, and living green walls.
The complexity of the project scope – Incorporating elements such as building a mezzanine floor, an internal staircase or an elevator in the redesigned office will compound the complexity of the project scope. To ensure that your office renovation project does not get too complex, a timeline with clear, reachable milestones at every stage should be created and used to monitor progress.
The impact of COVID-19 – Supplier prices have increased due to supply delays, shortages and higher labour costs. Renovation projects will also have to account for slightly longer project timelines due to longer production lead times, which may impact manpower costs.
3. Choose the project delivery method
When starting an office renovation project, choosing the project delivery method is one of the most consequential decisions to consider. A delivery method is a system selected by the owner/client to organize and manage a project’s design, construction, and maintenance. It also outlines the contractual relationship between the owner, architect/designer, and contractor.
There are two main delivery methods: Design-Bid-Build (DBB) and Design-Build (DB). For the design-bid-build model, the interior designer will plan and draw the office design, which construction companies will bid for to carry out the renovation. With the contract awarded, the winning bidder builds the project. This project delivery method is straightforward and offers owners/clients plenty of opportunities to provide input about office appearance and function because the designer works directly with the owner and the general contractor is responsible for following the designer’s plans. On the other hand, because in the design-bid-build method, all the phases of a project occur in sequence, a delay in one phase can have consequences on the entire project.
The design-build construction model does away with the bidding process as the interior designer and the construction firm are working under the same entity. Therefore, the designer and the builder collaborate and communicate directly which results in fewer change orders and clearer processes – which may lead to cost savings. In Design-Build, owners/clients have less input in design and construction management as they will usually let the contractors make most of the decisions. It is hence important to engage a firm with a strong track record to execute the project.
As more research shows that workplace design plays an important role in employee productivity and business performance, businesses can take this opportunity to take stock of their current office space to determine where improvements can be made. Office renovations can be costly, but with a bit of careful planning and the assistance of the right renovation contractor, businesses will be able to achieve their desired workplace objectives while staying within budget. Moreover, as trends shift rapidly, companies will need the help of a competent interior design firm that can interpret these changes and adapt their office space accordingly.
ID21 is committed to assisting businesses in navigating the rapidly evolving workplace landscape and achieving their work transformation goals. Contact us today to learn how we can help your company in creating a stimulating, creative, and inventive work environment.