A commercial fit out is a significant undertaking in terms of scope, time and cost. Unlike cosmetic renovations, a fit out involves transforming a space to suit a specific business’s operational needs, encompassing design, construction and installation. Projects of this scale typically involve a number of moving parts, from building permits and blueprints to labour and materials. It’s for this reason that it’s essential to understand the cost of a commercial fit out so you can budget accordingly and make educated decisions.
Let’s take a look at some of the key factors that influence fit out costs, along with some tips to help you budget for your next project effectively.
Key factors influencing commercial fit out costs
The final cost of a commercial fit out can vary dramatically depending on several factors, including:
Size and layout of the space
Larger fit out projects typically require more materials and more labour to complete. Depending on the complexity of your layout, you might also need more specialised trades. Ultimately, the larger and more complex the fit out, the higher the cost.
Type of commercial space
Each type of commercial space comes with its own unique design, regulatory requirements and infrastructure needs, which influence the final fit out cost. For example, a retail fit out often includes custom displays, branding elements, specialised lighting and customer flow optimisation, leading to higher design and material costs. These fit out requirements differ significantly compared to an office or commercial kitchen fit out.
Location and premises condition
Fit out projects in major cities and central business districts typically attract a higher cost compared to suburban fit outs. In addition, you can expect the existing state of the premises to also impact fit out costs depending on the extent of work required.
Fit out complexity and design
The finish and design can also have a significant impact on costs with intricate design, custom joinery, high-end finishes and architectural features all adding to the final price.
Breakdown of commercial fit out costs
Now that we’ve covered the different factors that impact costs, let’s take a look at some of the key costs that add to the final fit out budget.
Design and consultation fees
A commercial fit out is a significant project that typically involves completely transforming a space so that it’s optimised for the business’s needs. As part of the process, you’ll often need to engage an interior designer or architect to design blueprints for your new space. The cost of engaging these types of professionals typically includes their initial consultations, space planning and design development fees.
Building permits and regulatory approvals
Once you have your fit out plans in place, you’ll need to apply for building permits and approvals from local authorities before beginning construction. This can be a time-consuming and costly process, so it’s important to ensure you have everything you need before lodging your applications.
Once the fit out is complete, you’ll then need to have your project certified to demonstrate that it meets the relevant compliance requirements. As part of this process, you might need to engage a licensed professional to complete inspections and sign off on your certification.
Construction and renovation costs
Once the project is underway, you’ll need to cover the costs of construction work, including structural changes, wall alterations, plumbing and electrical work and HVAC (heating, ventilation and air conditioning) installation. Not only do these costs cover the materials needed, but they’ll also include labour for the different trades needed to complete the task.
Furniture, fixtures and equipment (FF&E)
The furniture, fixtures and equipment you choose for your fit out can have huge implications for the final cost. While the type of FF&E will depend on the type of commercial space you’re fitting out, these items can add up quickly and could require special consideration.
For example, if you’re furnishing an office space, you’ll need to factor in office furniture, like desks and chairs, as well as adequate lighting and other key furnishings. As part of this process, you might need to consider whether to opt for ergonomic furnishings for the comfort of your employees or other specialised equipment, depending on your industry.
Interior finishes and decoration
On top of the FF&E, you’ll also need to budget for interior finishes and decorations. This includes flooring, wall finishes, ceiling design, custom lighting and other decorative elements that align with your brand image or business needs.
Technology and systems integration
Many businesses rely on technology and digital systems, so it’s important to account for this expense as part of your fit out. Consider the cost of installing IT infrastructure, telecommunication systems, audiovisual equipment and security systems. The specific technology and digital systems included as part of your fit out will depend on the nature of your business and its needs.
Hidden costs in a commercial fit out
Unforeseen expenses can quickly inflate your fit out budget, straining your finances and potentially impacting the final fit out itself. It’s for this reason that it often helps to set aside a contingency budget of roughly 10-15% to account for any unexpected expenses or changes during the fit out. That said, being aware of common sources of budget blowouts can help you to better plan and prepare for your fit out so you can minimise the chance of unforeseen costs.
Similarly, you might not have accounted for post-fit out adjustments once the initial project is complete. From changing the layout to adding new technology as the business grows, these changes and updates will impact the final costs.
Keep your fit out on track with professional shop fitters
When it comes to effectively managing your fit out budget, it often helps to leave it to the professionals. Taking a DIY approach comes with significant risk. However, engaging commercial shop fitters like Build4U can help you to avoid costly mistakes and speed up the fit out process.
Not only do professional shop fitters have their own team of experienced contractors, but they’ll also have an established network of local trades, contractors and industry contacts to ensure your project is delivered on time and on budget.
As multi-award winning professional builders, Build4U has the skills, capabilities and resources needed to deliver on a wide range of commercial fit outs. Get in touch with the Build4U team to work with a fully licensed and experienced team of shop fitting specialists.
