Renovate Or Build New?

Jul 30, 2013

If you’re struggling with the question of whether or not to remodel an existing facility, perhaps it’s time to review your space needs within a greater framework — a framework of whether your long-range business plans can be met altogether by the existing facility.  Often, the most common sense manner to approach a building renovation is to consider how the cost of a renovation project compares in relation to the cost of new construction. More importantly, will the renovation project help the company or the different departments meet their long term goals?

Recently, Smet Construction Services was asked to put together estimates for the cost of remodeling a health facility. When the final estimate ended up higher than anticipated, we recommended taking a look at a newly constructed facility. The design for the new facility allowed for a more efficient floor plan and easier traffic flow. It also provided the health care provider an opportunity to provide up-to-date services that weren’t practical with its outdated facility. Plus, due to the potential new, more efficient layout, the provider was able to forecast reduced staffing levels during non- peak usage hours. Finally, the new building’s mechanical and structural systems were state-of-the-art as opposed to patch-work to fit an existing aging structure. In the end the project estimate for new construction was only 20% higher than that for renovation, worth considering in this particular case. The new facility would provide for a long-term approach to meeting its customer’s needs for the next 30 to 40 years.

Not all projects can be so obvious. Often, renovation will be more practical if the long range business needs are uncertain or your business is in a fast-changing environment where adapting quickly is more important than getting locked into a “long-term facility”. Sometimes the majority of needs are already being met and there are simply minor adaptations that need to take place, in which case renovation makes the most sense.

If you have an upcoming renovation project and you’d like help to clarify your needs, give Smet Construction Services a call. We have the people and resources to walk you through your long-term needs and can help you tailor a space plan and building plan to fit your business needs.

Renovate or Build New?  Let Smet help you clarify your needs!

Greg Polacheck

Director of Market Development