The complete guide to creating an office refit budget

Design and professional fees (10-15% of total budget)

While traditional office refits often require coordinating multiple contractors and consultants, our design and build approach streamlines the entire process. At OP, we bring together all necessary expertise under one roof, from creative design through to construction.

This design and build approach delivers better value for money, faster project completion and greater budget certainty. With design and construction teams working together from day one, we can provide more accurate cost estimates and creative solutions that achieve your vision while optimising costs.

Core construction costs (50 - 55%)

The foundation of your office refit budget lies in the physical transformation of your space. This incorporates everything from structural modifications to the installation of new systems. When planning your budget consider the age and condition of your building.

Older buildings might require additional investment in infrastructure upgrades, while newer spaces might allow you to focus more on aesthetic improvements.

Modern office design often call for open plan workspaces with flexible configurations, which might require removing walls or reinforcing existing structures. Your electrical and lighting systems should support both current needs and future technologies. HVAC modifications aren't just about comfort, they're essential for maintaining a healthy, productive workspace.

Furniture and equipment (20-25%)

Your office furniture choices significantly impact both the aesthetics and functionality of your space. Modern workspaces require versatile furniture that can adapt to different working styles and team configurations.

Consider investing in ergonomic seating and height-adjustable desks to support employee health and comfort. Breakout areas deserve special attention as they foster collaboration and creativity, while storage solutions should be both practical and space-efficient.

Contingency fund (10-20%)

A well-planned contingency fund is your insurance against the unexpected. Office renovation projects often reveal hidden challenges once work begins. Market conditions can affect material costs and design modifications might be necessary as the project progresses. Your contingency budget ensures these surprises don't derail your project.

Technology integration (20-25%)

Technology infrastructure is as crucial as physical infrastructure. Your budget should account for not just basic networking needs but also advanced audiovisual systems that support hybrid working.

Smart building systems can enhance both efficiency and user experience, while robust security installations protect your assets and people.

Smart budgeting strategies

Phased implementation

This strategy allows you to spread costs over time while maintaining business continuity. Begin with high-impact areas that demonstrate the potential of your new office design. Use feedback from these initial phases to refine your approach for subsequent areas. This method manages cash flow more effectively and allows your team to adapt gradually to new ways of working.

Future-proofing your investment

Invest in flexible infrastructure that can adapt to changing technology and working practices. Consider modular systems that can be reconfigured as your needs evolve. Plan for adequate power and data capacity to support future technology needs.

Sustainability and long-term value

Energy-efficient lighting and HVAC systems reduce operating costs while supporting your environmental goals. Quality materials might cost more upfront but require less maintenance and replacement over time. Consider how your choices will affect both initial and ongoing costs.

Leasing your office refit

Leasing can be a strategic option for managing an office refit budget, enabling businesses to spread out upfront capital expenditures with manageable monthly payments. Leasing may offer tax advantages since lease payments are often deductible as operating expenses. When considering a lease, it’s essential to evaluate the lease term length, any available buyout options and total lifetime costs compared to purchasing. By leasing, businesses can improve cash flow and project feasibility, making it a suitable option for companies in growth phases with changing workspace needs.

Leveraging capital allowances

Capital allowances offer significant opportunities to reduce your office refit costs through tax relief on qualifying expenditure like electrical systems, air conditioning, built-in furniture, and network infrastructure. By engaging capital allowance specialists early in your project, you can maximise these tax benefits and potentially identify additional relief opportunities.

These allowances can be claimed on current, recent, or planned improvements, making them a valuable tool for managing project costs. When properly structured, they can improve cash flow, fund additional improvements and support business growth initiatives.

Planning your timeline

The pre-planning phase typically requires two to three months for thorough needs assessment and initial budgeting. Design development and cost refinement usually take another one to two months. The implementation phase, including contractor selection and construction work, generally spans three to six months, depending on project scope.