Ever wonder how construction costs are allocated? Construction budgets are broken down and allocated by division. The break down above shows the percentage of how much each division accounts for in a total construction budget. This is for tenant improvement projects starting with a shell space.
The best way to create an effective budget for both interior design services and construction management is to understand the allocation of costs because it allows clients to avoid any major surprises during the process. When it comes to construction management, it can be difficult to effectively keep track of a budget while working with multiple trades. Hence the beauty of a design-build structure, Counterpoints specializes in being a one stop shop who can manage all tenant improvement projects as not only the interior designers but also as project managers and general contractors.
The construction industry experienced significant cost increases in 2021. Although labour costs increased 3-5% on average, the major contributing factor was the rising cost of construction materials which occurred as frequently as monthly. Material shortages and high shipping costs induced by the pandemic played a significant role in materials cost increases.