Office fit-out budgets are dynamic and nuanced, so make sure you understand the basics before making any significant budgeting or purchase decisions for your office. We’ve broken down the typical office fit-out budget below. While every project is different, the percentage of your budget dedicated to each project component is fairly predictable.
Here’s what you can expect.
Understanding Your Office Fit-Out Budget
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Office Fit-Out Budget |
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Project Component |
What’s Included |
Average Percentage of Total Budget |
|
Hard costs (construction) |
Physical construction, such as adding walls, installing utilities, or updating flooring |
50–70% |
|
Furniture, Fixtures, and Equipment (FF&E) |
Functional and decorative elements |
20–30% |
|
Delivery and Installation |
Professionals to deliver and install all your furniture |
4-6% |
|
Soft costs (professional services) |
Expert services, like interior design, furniture procurement, and project management |
5–20% |
|
Vendor costs |
Moving services, AV and IT wiring, and other ancillary services |
5–10% |
|
Contingencies |
Safety net for changes or delays |
10–15% |
|
Additional costs |
Permit upgrades, sustainability features, moving expenses, and insurance |
Varies by location |
Let’s take an example budget to see how this might shake out. Let’s say you have an office fit-out budget of $500,000.
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Example Office Fit-Out: $500,000 Budget |
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Project Component |
Average Percentage of Total Budget ($500,000) |
Cost |
|
Hard costs (construction) |
50–70% |
$250,000 |
|
Furniture, Fixtures, and Equipment (FF&E) |
20–30% |
$100,000 |
|
Delivery and Installation |
4-6% |
$20,000 |
|
Soft costs (professional services) |
5–20% |
$25,000 |
|
Vendor costs |
5–15% |
$25,000 |
|
Contingencies |
10–15% |
$50,000 |
|
Additional costs |
Varies by location |
$30,000 |
|
Total Cost |
$500,000 |
|
Check out our interior design cost guide for more granular details. We’ll mainly focus on FF&E office fit-out budgeting for our purposes because that’s our arena here at Benhar.
Office Fit-Out Budgeting Tips
Figure Out Your Priorities
Everything we source at Benhar is of the highest quality, but that doesn’t mean every piece fits every budget. When we meet, we’ll work with you to define your priorities so you spend your money where it matters the most.
Save on pieces for non-client-facing rooms and lower-traffic areas and splurge on pieces for your welcome areas, executive offices, board rooms, and anywhere else you need to make a strong first impression. You’ll also want to consider your non-negotiables versus your nice-to-haves. Reserving optional items for the end of the project can give you more room in your budget for incidentals should you face delays or other unexpected expenses.
Optimize Your Space
Efficient office designs balance collaboration and privacy while ensuring that every inch of the space is maximized to its full potential. Underutilized space is costly, so it’s best to address it early by tracking space usage and implementing strategies like flex spaces and collaboration stations to encourage your employees to make the most of the office.
Heed Expert Opinions
While specialized vendors may not seem like an exciting cost to consider, bringing in the experts at the onset of your project can help you stay on track, avoid mistakes, and get the most out of your budget. You’ll also want to think deeply about your office culture and the kind of energy you want to encourage in the space. Experts can help you choose everything from the right colors to the best chairs.
Be Realistic
If you have an all-in-cannot-exceed budget, you need to start there and work backward. Immediately reserve at least 15% of your budget for contingencies, then start unpacking your various other costs.
Are you going to close your business during renovations? Are you going to renovate one space while occupying another? Do you plan to reuse furniture in the new space, or are you starting from scratch? Do you want architectural walls?
You don’t know what you don’t know, so this is another opportunity to bring in experts to understand better how far your money can go.
Track Expenses
Make a line item out of everything and track it somewhere when in doubt. Ensure anyone working on or managing a different part of the project submits receipts, attends weekly meetings, and keeps you informed of where the money’s going. Tracking expenses will allow you to correct courses as needed and also give you a reference point if you need to reallocate funds later.
Office Fit-Out Budgets Made Easy With Benhar Office Interiors
When you work with us, you don’t have to produce your office fit-out budget out of thin air. We’ll help you set a realistic budget and collaborate with your other vendors to ensure your project stays on time and within budget. We can’t tell you what your budget is, but we can help you make the most of it.