- Emma Anderson
- September 29, 2021
Making a budget for an office fit-out is not easy because interior design companies can get a specific quiet. There are a lot of other factors like materials, furniture, space, tech, labour, and the like that you cannot generalise while estimating the total cost of the fit-out.
Now, most of the companies are looking to call their employees back to the office. They have to follow new sitting norms to curb the spread of the virus. This is why some companies are looking to invest in budgeting for an office fit-out.
There are a lot of calculations you need to do to know how much money you need to invest. Here are the factors that play a paramount role in deciding to budget for your office fit-out:
Types of fit-out
The first and foremost factor in deciding the budgeting for an office fit-out is the type of it. You can choose various types for your office needs. Each of them has a different purpose and has a different cost:
Cat A – this kind of fit-out will include all essential things like lighting, raised floors, and toilets. This fit-out does not include space planning like furniture.
Cat B – this is an upgraded fit-out, and hence it will cost more than cat A fit-out. This kind of fit-out includes everything that cat A fit-out includes, but apart from that. It focuses on the specific needs of employees. It includes things like meeting rooms, internal partitions, office furniture, flooring and artwork.
Turnkey – this kind of fit-out will be more expensive because it includes everything from A to Z. The interior designer or contractor handles all the things.
How much does office fit-out cost?
Even if you think office fit-out is quite important, it is dreading. This is because it costs a lot of money. Most of the entrepreneurs just rely on the contractors and ask them to do what they think is the best for their office space, but this is where they slip up.
Planning is a must before implementing any project. The same thing goes with the office fit-out. Before you throw money at fit-out, you need to estimate how much exactly it will cost. Further, you also need to assess its impact on your workplace.
The best thing is you should consult a workplace consultant. They can advise you on how you can create a healthier workplace for your employees. It will help if you also tell them your opinions and what you want so they can decide how to meet your expectations without leaving the scope for regret at later stages.
You will likely have to discuss with them how you use your workplace, what the office space is used for, and so forth. Then only they will be able to tell you the exact amount of budget for the fit-out. When it comes to budgeting, it can be still quite hard.
You must know at least the estimated cost so you can plan your budget accordingly. Note that the estimated cost can vary by the type of fit-out you choose and other factors like office space, usage, and function.
All factors are taken into account to give you an estimated quote. For instance, a fully-fledged project can cost you somewhere between £50 and £80 per square foot. This project will include everything like meeting rooms, front desk office, cafe, new furniture, and the like.
The basic fit-out project will cost somewhere between £40 and £50 per square foot. This estimated quote is for the cat A fit-out project. If you choose a mid-level fit-out project that does not just involve what cat A offers but also includes structural design changes, it will likely cost you somewhere between £50 and £70.
The upgraded level of the fit-out project will cost you over £70. It will include everything. You should ask your interior designer or contractor for the quote for all types of fit-out projects, so you can choose the one that fits your budget.
If you have started your new business and have some savings only to throw at your fit-out budget, you should seek external funding sources. You can take out loans for unemployed people. However, when you borrow money, make sure that you will not be facing any problems in repaying debt. If it happens, you will likely fall into a debt spiral.
Should you invest in office fit-out?
Before you spend money on office fit-out, you should know whether you should invest in it. Just because you have seen other companies refurbishing their office space does not mean you also need to do it.
Even if you do not have to take out loans without a guarantor with direct lenders, the office fit-out can prove to be a great investment.
At this moment, economic uncertainties are high, you can end up being run out of money after it, and eventually, you will be funding your regular business expenses.
If you actually need an office fit-out, you can still choose some affordable options. For instance, you can switch to an agile or hybrid workplace.
You can also invest in an open space workplace. Considering the social distancing factor in mind, it will be the best option. When it comes to fit-out, you should think about what you need and the purpose for it. Otherwise, it is simply a waste of money.
The bottom line
Budgeting for an office fit-out is not easy at all. If you are doing it the first time, you will be dreading budgeting. However, there are ways you can manage to spend money on fit-out projects smartly.
First off, you should decide whether you should invest in them. Then, find out what type of fit-out will work out. It is not necessary to choose a comprehensive project.
Talk to the interior designer or contractor so they can advise you whether you can achieve your goal by implementing what is on your mind. Negotiate with them so you can get the most attractive quote.