How Do You Estimate Renovation Costs?

Last updated on February 2nd, 2024 at 06:47 pm

August 18, 2023
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It can be difficult to imagine how your renovation project is going to look in the final result and how much the entire endeavor will cost. That’s why preparation is key in helping you understand what to expect. 

  1. Map out the scope of your business renovation
  2. Get contractor quotes for labor and materials
  3. Do a cost breakdown 
  4. Prepare for unexpected renovation expenses
  5. Is it worth it? – Cost Analysis Benefit
  6. DIY renovation projects
  7. Permits
  8. Commercial renovation estimate

These factors will help you get a better idea of what your retail, office, or commercial business renovation estimate will be. 

The Project Scope 

This is the most important part of any renovation project because it provides you with a step-by-step guide. This guide should outline how many rooms are going to be remodeled, where in the room or the section of a building (bathroom, kitchen, office, etc.), and what exactly is being improved

Are the walls being renovated or are the floors? Or both? Make sure to add those details to your project scope. It may begin as a vague list of bullet points but as you begin to research more it will become better detailed. 

Hiring Contractors

Part of that research is deciding what professionals you would like to work with. If you don’t immediately have a contractor in mind then try searching online for ‘commercial renovation contractors near me’ or ask a local retailer who they would recommend. 

Then get quotes for the cost of labor, materials, and time needed. Multiple contractors might be necessary for your project, so keep that in mind as you proceed.  If it is a large project, you may need to hire a general contractor to oversee the project and the multiple sub-contractors necessary to complete the project.

Cost Breakdown

Once you have an idea of what the contractor will cost, add that to a larger cost breakdown sheet. This sheet should also include the cost of necessary permits, equipment rental fees, temporary housing if necessary, and whatever other factors that are specific to your renovation project. 

There are commercial construction cost breakdowns available online for free with exact estimates. 

Unexpected Renovation Expenses

Once everything is planned and estimated it’s important to consider the unexpected. A renovation project might experience delays or unforeseen weather that could derail progress and impact structural integrity. 

Have a backup plan ready and factor in the cost of additional labor, materials, and the chance that you might change your mind – it could happen.

Cost Analysis Benefit 

Cost analysis benefit is a method used in business to determine whether a financial decision is worth making. It involves tallying up the entire cost of a project, in this case, a renovation project, and subtracting the expected benefits. If the cost is greater than the benefit then it’s largely not considered a risk worth taking.

How do you know if your renovation estimate will be worth it? Consider whether you will be saving money on future repairs or the benefit could be in new structural safety. 

DIY Renovation Projects

If the cost analysis benefit reveals a negative result then you may wish to take on some of the renovation yourself. These are some cost-effective renovation strategies that you can try:

  • Wall makeovers: wallpaper, stencils, and repainting
  • Crown molding
  • Hardwood floors 
  • Create a garden or remodel the outdoor section
  • Weatherstrip doors

However, hiring contractors for electric, gas, or plumbing is strongly advised if you are unfamiliar with those areas. Demolition without a professional can be dangerous and may prove to be a less cost-effective renovation strategy in the long run.

Remember that the quality of the project will suffer if certain corners are cut. It is crucial to ask: Can I do this DIY renovation project? Should I do it? 

Construction Permits

Different states require different commercial construction permits and have specific ordinances. Here is a brief list of projects that often need permits: 

  • HVAC
  • Plumbing
  • Electrical
  • Land Use Zoning
  • Building
  • Fences (height)
  • Water Heater Replacement
  • New Windows (skylight) 

Contact your local municipality to see if your business renovation requires any of these permits or others not mentioned. The permit process takes time, but failing to acquire permits can result in upwards of $500 in fines.

Commercial Renovation Estimate

Once you follow all of these steps you will have a clear estimate of renovation costs. It all begins with deciding the scope of the project, so grab a pencil and some paper and get started. 

Diamond Contractors has the skill to bring your renovation project to life. As a construction company with decades of experience and expertise, they aim to be better than perfect. Diamond Contractors has worked with retailers like CVS, Total Wine, Pep Boys, Chick-Fil-A, Under Armour and the list goes on. They specialize in remodeling, new construction projects, and retail rollout construction. 


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