Where Can You Save Most on the Cost Of Your Building?
Managing Your Operating Budget
When you’re about to invest in a new construction project, it seems logical to focus on your capital expenses budget. After all, that’s where the money will need to come from for this new investment. But nearly every organization is surprised to realize that the real opportunity to save money comes from analyzing the operating budget.
To minimize long-term costs and maximize the return on investment on your construction project, you need to involve members from both sides of the budget -- capital and operating expenses -- before you finalize your plans. If you’re wondering why, here’s the simple answer: over the life of your new building, as much as 90% of the total cost of ownership will come from your operating budget. That means the numbers you contemplate for the construction budget account for only 10% of the total building operating cost of that structure.
When you break it down, it’s pretty easy to see where all the money goes. Lighting, heating, cooling and maintenance costs can dwarf a construction budget when you look at it over a 40- or 50-year period. Regardless of new energy sources that are being sought today, nobody expects to be paying less for energy 15 or 20 years from now. The best way to minimize those costs is to build energy efficiency into your building now.
Where does the money go?
Over the lifetime of your building, there are three main areas that drive costs:
- Initial design and construction costs
- Operating costs
- Maintenance and replacement costs
Working with Humble Construction, you can minimize your costs in all three areas starting with our turnkey approach: Research. Design. Build. Develop. When you pull us in early in the process, we will bring decades of experience to make sure your project is aimed at your goals from the pre-planning and design stage all the way thought final construction.
If you’re ready to think differently about the cost of your building, call Humble Construction to start the process of lowering your total building operating costs.