You have an industrial business and you want to expand your activities. To do this, you plan to build an industrial building. If you want to achieve this, you need to know the budget for your work.
If not, you at least need to know the approximate cost of your project. Indeed, this cost can vary depending on a number of criteria. How much can the construction of an industrial building cost you? Here are some answers.
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The cost of constructing an industrial building
The cost of constructing an industrial building per m2 is 350 to 450 euros on average. However, this cost can vary significantly depending on the criteria that your construction project must take into account. Among these parameters, you have, among others:
- the location of the land;
- the type of materials to be used;
- the surface area of the building;
- the equipment;
- the type of architecture;
- the intended use of the building.
The choice of a sustainable construction that respects the environment is also part of the criteria.
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The location of the land
The cost of setting up an industrial building encompasses everything from purchasing the land to equipping the building. The price of the land will vary if it is in a large city or in the countryside.
The cost of the latter can also vary depending on the size of the land. The higher the price of your land, the higher the cost of constructing the building will be.
The type of materials
Metal materials are more recommended for industrial buildings. Moreover, they are less expensive than wooden frames.
The type of use
This refers to the use you want to make of your building. That is to say, what your industrial activity consists of.
The current standards for constructing industrial buildings vary depending on whether your industrial building is:
- for warehousing goods;
- offices or auxiliary workshops;
- a production line;
- storage of hazardous products, etc.
Regarding the equipment of the building to be constructed, this includes electrical, heating, insulation equipment, etc.
The distribution of construction costs
The costs of constructing an industrial building can be divided into two main categories. These are labor and materials.
Labor accounts for about half of the construction costs due to the diversity of participants, namely:
- architects;
- surveyors;
- site managers;
- contractors;
- insurers, etc.
All these actors involved in the construction of the industrial building must indeed be compensated.
To reduce labor-related expenses, you can hire a general contractor. While ensuring the quality of the work, the latter puts several construction companies in competition to negotiate a more advantageous cost.
You also need this general contractor to estimate your construction project. This allows you to know the necessary budget required to realize your project. This will be done after precise studies and evaluations.
Reducing the cost of constructing an industrial building
There are ways through which you can obtain reductions on the cost of constructing your industrial building. These methods have nothing to do with those often used by many companies.
Indeed, some structures opt for low-quality materials to reduce the construction budget of an industrial building. This is a very bad strategy.
To benefit from reductions on your industrial building construction budget:
- spend more time on the preliminary project and design;
- negotiate the labor costs well;
- take advantage of state and local government assistance.
Labor costs account for more than half of the expenses related to the construction of an industrial building. Thus, negotiating these prices well will allow you to obtain a reduction on your budget.
Also, depending on the area where you want to construct your industrial building, you may benefit from tax advantages. This could include tax reductions and exemptions from property tax for 5 years.