How to Lower Expenses for Commercial Fit-Outs?

We've observed some common mistakes that drive up prices while carrying out an office fit-out. Be aware of these typical errors and read our tips on how to avoid them to ensure you stay on top of your business fit-out.

The following nine factors can push your project's costs out of control:

1. Poor Tendering Procedure
2. The Incorrect Contract
3. Indecision
4. Unwise Design Decisions
5. Excessive Engineering
6. Inadequate Project Management
7. Delays
8. Poor Workmanship
9. The Wrong Contractor

1. Poor Tendering Procedure

Problem:

Not taking the time to undertake a thorough and proper tender process is a common mistake that increases the final cost of a project.

Solution:

In actuality, getting quotes from at least three businesses is the best course of action. Make sure everything you want to add has been valued before comparing prices.

A contractor might not include all you expect them to due to genuine error, difficulty locating a supplier price, or other less obvious and covert reasons.

Make sure there are no omissions or additional charges by carefully going over each quote. Additionally, all contractors have quoted similar prices for the same things. You may avoid "comparing apples and oranges" only after that.

2. The Incorrect Contract

Problem:

Selecting the incorrect kind of contract. As a result, overseeing the progress of the work and scheduling payments may become a full-time job, diverting attention from daily responsibilities or necessitating the hiring of an expensive external quantity surveyor or project manager in order to reduce your risk.

Solution:

Picking a contract that is typical for the industry is probably ideal. A straightforward lump sum agreement is the easiest for all parties. In this case, the contractor would charge a predetermined fee to finish the entire project according to the architect's designs. Anything added after the mutually agreed date is charged extra and individually.

However, clients might expect to pay a little bit more than on a measurement contract due to the increased risk for the contractor (it's possible to overlook some small aspects when pricing a fit out project). But working under these conditions is much more time- and labor-intensive.

3. Indecision

Problem:

Costs will constantly increase if you can't choose between design possibilities. It reduces delivery times, which limits the options for finding a reasonable price.?

Making a change of heart after an item has been ordered, however, might be much more expensive because refunds and credit notes are not always an option.

Even worse is changing your mind about something after it has been set up on the job site. In addition to paying for the labour and materials to install the new feature, you will also be responsible for paying to remove the old one.

Solution:

Plan ahead to complete designs as soon as possible. Ask for the recommendations of a few trustworthy people and pay attention to your contractor.

4. Unwise Design Decisions

Problem:

Poor layouts, shoddy space planning, and a wide range of other problems that result from poor design can all be considered design concerns.

Solution:

Don't make your designers comply with your every whim and demand. There is a valid reason why an interior designer or architect would advise against doing X, Y, or Z.

5. Excessive Engineering

Problem:

Purchasing features and equipment that are considerably too durable (and expensive) for the use they are designed for.

Solution:

Think it through carefully and discuss the intended use of your furniture and finishes with your contractor and suppliers. Savings opportunities might exist, allowing you to allocate your budget more wisely.

6. Inadequate Project Management

Problem:

Complications that develop throughout the fit out or renovation project as a result of improper organisation. This might involve labour showing up on the wrong days and late deliveries.

Solution:

Make sure to check the project management track record of your contractor. Talk to your industry peers or other contacts who have just had a fit out or renovation, and look up references and reviews online.

7. Delays

Problem:

Even the greatest staff working on a renovation or construction project can experience delays. Floods and traffic bottlenecks are just two examples of outside factors that can delay deliveries. Accidents are also (unfortunately) a risk of employment in this sector.

Even larger projects and contractors may experience difficulties with their suppliers or subcontractors' credit or cause them to go out of business.

Solution:

Make sure to provide some wiggle room in your work schedule. Have a contract end date to strive for, but a real end date that absolutely cannot be surpassed soon after.

Although delays sometimes occur, it's important to identify them early on to reduce their impact. To be able to do this, it is essential to plan all trades to begin as soon as feasible.

8. Poor Workmanship

Problem:

Bad workmanship will only lead to increased prices due to a lack of knowledge, lack of time, or poor product selection. Either during the project itself, as a result of the time it takes to fix the problems, or after it is finished, when faulty work needs to be replaced.

Solution:

Keep a close and ongoing check on the development and standard of the job. A complete and detailed snag list will assist in managing this. Additionally, obtaining a retention bond will encourage contractors to finish any incomplete work that is discovered after completion.

9. The Wrong Contractor

Problem:

utilising a contractor more suitable for a different kind of fit-out or renovation project. Homebuilding, office renovations, and commercial fit outs are all specialised areas of construction.

Solution:

Before asking them to submit a bid for your job, make sure to thoroughly vet any potential office fit out contractors.