What is the final cost of a building project?

When a potential customer asks, “What does a new warehouse or manufacturing facility cost per square foot?”

Ferguson Construction Sidney Ohio

Here is the easy answer the customer wants to hear – $32 per square foot for warehouse and $45 per square foot for manufacturing. The real answer is, in today’s dollars, a warehouse could range from $22 to $110 per square foot and a manufacturing facility could range from $32 to $150 per square foot. The only thing the customer likely heard and remembered was $22 and $32 per square foot.

Most of the customers that we speak with are pretty smart people working with a nearly perfected process to manage their products and services to derive their costs and margins, but there in lies the fallacy in the premise. Construction is not a “process” when it comes to new facilities it will always be a “project”. A process seeks to eliminate all variables that may impact the output. On the other hand, a construction project the variables are unlimited, too many to go to in detail. But we would be glad speak with you in person about them.

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