If you’re considering a capital expansion project, there are 5 common mistakes that we find owners making every day. These same issues pop up on small $10k renovations, large $100M manufacturing facilities, and everywhere in-between. Avoid these PITFALLS and you’ll save both time and money on your next project!
1. Spending too much time on your project
Building expansions and relocations don’t MAKE money, they COST money. With most business owners valuing their time at over $200 an hour, make sure you are spending your time on activities that drive income and bring in a team that can mitigate the cost of your expansion, and optimize your long-term operational capacity.
2. Missing out on financial incentives
Financial incentives aren’t meant to finance a capital expansion, but they can make them more cost effective. Most businesses leave money on the table that could be used to further leverage their investments; sometimes incentives are worth millions! A team can help you evaluate all potential incentives, from tax credits, to infrastructure improvements, to ensuring you are using all available tools to minimize your capital outlay.
3. Finding out too late the budget doesn’t match scope
Old methods of project delivery are slow, expensive and can’t adapt to changing client needs. Worst of all, it COSTS you money to find out you’re over budget. As an alternative, design-build services are structured to provide you the building you want, according to your time and budget. By starting with schematic and conceptual designs, your project can be refined incrementally as the budget and scope become more clear over-time. This saves you time and money.
4. Buying a building, rather than selecting a site
Don’t rush to buy a building. The wrong building in the wrong location costs MUCH more than a site selection professional. There are many variables that impact the total operating cost of a building, from workforce availability and cost, to utility fees and transportation access. A site selection professional can help you measure and weigh the impact of these variables on your long-term operating costs.
5. Hiring contractors, instead of a construction team
Traditional projects create separations between the design and construction teams, and often between individual contractors. The separation adds time and cost to projects, leaving the building owner managing individual contracts with a suite of service providers. Individual contractors may have opposing interests, creating a management headache for the owner. A design-build professional can manage both the design and construction, as well as the sub-contracts, protecting the owners’ interests and simplifying the process.
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Imperien offers full-service capital project services from concept to completion. Our services include comprehensive site selection, financial incentive negotiation, building design and construction management.
We work to help clients stay focused on their business throughout the process and avoid wasting their time on a construction project. Our team of financial incentive experts provide the tools necessary to make capital expansion projects financially sound. Imperien coordinates projects from initial conception through completion to keep budgets and scope in line throughout the entire process. Site selection services look at all costs associated with a particular location and ensure selection of the site with lowest cost of ownership. We work to package together the full team of experts and service providers to represent clients with architects, engineers, contractors and project financing to get them the highest return on their investment.