Construction Costs

The moneys required to build or remodel the interior, inluding such things as demolition, partitions, ceilings, millwork, finishes and plumbing, electrical, and mechanical work. Genereally anything that is attache to and becomes part of the structure.

Furniture, Fixtures, and Equipment

On most projects, FF&E are separate budget items b/c the way they are specified, purchased, and installed is different from the way construction items are handled.

Also, b/c of the various discounts the designer or client receives and the tax that must be paid. Clients also prefer to allocate money to these items separate from hard construction costs.

FF&E

Some of the items that are normally part of the FF&E budget include the following:

-Furniture

-Appliances

-free-standing equipment such as vending machines

-window coverings

-rugs and mats

-interior plants and planters

-lamps

-artwork

-accessories

Contractor's Overhead and Profit

This line item includes the GC's profit and cost of doing business. For construction projects, overhead can be divided into general overhead and project overhead.

General Overhead

The cost of running a contracting business and includes such things as office rent, secretarial help, utilities, and other recurring costs.

Project Overhead

The money it takes to complete a specific job, not including labor, materials, or equipment. Temporary offices, prlject telephones, trash removal, insurance, permits, and temporary utility hookups are examples of project overhead. The total overhead costs can range from about 10 to 20 percent of the total costs for the contractor's labor, materilas, and equipment.

For construction costs, profit is a percentage of the total of labor, materials, equipment, and overhead to do the job. In most cases, however, profit will range from 5 to 15 percent of the total cost of the job. Overhead and profit can total about 15 to 25 percent.

Taxes

Include sales tax paid on furniture, accessories, and other purchased items. If the interior designer buys these things, he or she is responsible for collecting tax from the client and paying it to the appropriat taxing jurisdictions.

Taxes on materials used in construction are paid by the GC and subcontractors and are included in the total construction budget.

Contingencies

Should always be added to the budget to account for unforeseen change requests by the client and other conditions that will add to the total cost of the job.

Should be about 5 to 10 percent of the total budget.

Square Footages

Budgets based on size are usually the first and most preliminary type of estimate done before much design work has started. The anticipated square footage of teh project is multiplied by a cost per square foot to arrive at a number.

It is usually best to develop three budgets based on a low, medium, and high cost per square foot or cost per functional unit.

Parameter

Involves an expanded itemization of construction quantities and furnishings and assignment of unit costs to these quantities.

Like Duke's scope of works. 

An idea of the exact scope. Budget can be refined.

Detailed Quantity Takeoffs

The most precise kind of budget is by counting actual quantities of materials and furnishings and multiplying these quantities by firm, quoted costs. Such detailed estimates cannot be done until late in the design and construction document phase of a project.

For furnishing costs, interior designer develops a list of all the individual pieces of furniture.

The exact manufacturers and model numbers are known, along with color and fabric selections, applicable discounts, delivery costs, and required taxes.

Cost Information

One of the most difficult aspects of developing project budgets is obtaining current, reliable prices for the kinds of furnishings and construction units you are using.