Published on:

22 November 2024

Updated on:

21 November 2024

Read time:

2 minutes

Adrian Batts

Operations Director

Phil Butler

Operations Director

At OP, we've been helping companies transform their workspaces for over 35 years. During this time, we've identified the top five expenses companies often overlook when budgeting an office refurbishment project.

While the upfront costs of office interior design, construction and office furniture are often considered as part of an office refurb budget, there are several expenses that can go unnoticed if not properly accounted for.

Time commitment impacts your office refurb cost

Underestimating the amount of time required to plan and execute an office refurb is a common pitfall. Your team will need to dedicate time to provide input, make decisions, and stay involved throughout the process.

Once on site, you can expect an office fit out to take 8-14 weeks for standard renovations up to 10,000 sq. ft. But that doesn't account for the discovery and design phase of the project, or gaining necessary permissions from the landlord or council.

In addition to the regular meetings and decision-making, your team will need to be involved in tasks such as reviewing designs and providing feedback. This represents a significant investment for both the project team and senior decision makers.

To reduce the time your team spends on the project, it's essential to partner with a design and build partner that brings together all the necessary expertise under one roof. OP can provide accurate cost estimates and creative solutions that optimise both time and budget.

Adrian Batts, Operations Director

Understanding office refurb cost factors

Office refurb projects involve multiple elements that need careful consideration during the budgeting process. From coordinating contractors to navigating building regulations and approvals, these projects require comprehensive planning and expertise.

Beyond the core construction and design elements, there are various logistical considerations that contribute to the overall investment. These can include temporary workspace arrangements, relocation expenses, change management initiatives, and post-completion adjustments. Working with an experienced design and build partner ensures all these elements are properly accounted for in your initial project scope.

Office design changes and variations

You might want to make changes or add new elements during the project. These "variations" can simpact your budget if not properly planned for.

As mentioned in our guide to creating an office refit budget blog, it is important to allow a 10 to 20% contingency in your budget to account for variations. Carefully review your initial quote and design package to minimise the need for changes down the line.

Unexpected building infrastructure upgrades

Older buildings with outdated MEP systems may require costly remedial works that are only discovered once the project is underway. Many businesses overlook the condition of their existing building infrastructure when budgeting for an office refurbishment.

However, issues with the HVAC system, electrical capacity or structural elements can quickly escalate costs if they require upgrades or repairs.

By conducting a comprehensive building survey before finalising your plans, you can identify any potential problem areas and incorporate the necessary remedial works into your initial budget. This upfront investment can save you from unpleasant and expensive surprises down the line.

Longer-term operating costs

While not an immediate expense, the ongoing operating costs of your refurbished office space should be carefully considered.

Energy-efficient HVAC systems, modern appliances, and sustainable design choices can significantly reduce your long-term utility and maintenance expenses.

Investing in higher-quality, more efficient solutions may have a higher initial price tag but can deliver significant returns over time. Factors like energy consumption, maintenance can have a major impact on your bottom line.

Prepare for the unexpected with the right office refurb company

At OP, we understand that office refurbs are complex undertakings with many variables at play.

By shining a light on the most common hidden costs, our goal is to empower businesses to create more accurate and comprehensive budgets for their workplace transformation projects.

As a leading design and built partner, we've helped countless organisations navigate the challenges of office relocations, fit outs, and refurbs. Our in-house team designers, and construction specialists work collaboratively to deliver solutions that not only meet your functional requirements but also elevate your brand and culture.

From conducting detailed building assessments to providing expert guidance on change management, we take a holistic approach to ensure your office refurbishment project stays on track and delivers long-term value.

Whether you're planning a full-scale office relocation or simply refreshing your existing space, OP has the experience and capabilities to help you avoid hidden costs and create a budget that supports your vision.

Contact our team today to learn more about our design and build services.

Meet the Authors

With over two decades experience of the industry, working across a diverse mix of projects in a full range of roles, Adrian has a unique understanding of office fit out methodology; the strategic planning of a project and its design and cost-planning. He is passionate about formulating the best workplace strategies for all clients, applying the core principals of change management to provide positive outcomes for the end-user.

With a long and comprehensive track record as contracts manager and project manager for some of the industry’s most senior players, Phil has garnered experience across a raft of sectors, alongside the commercial sector, including housing, education, leisure, health and government agencies.