Consider Your Budget When Building
Evaluating Direct and Indirect Costs
Direct and Indirect Building Costs
Investing in a new building is a big decision, and that means you’ll likely be creating a detailed budget. The most obvious expense that must fit within those parameters is the building itself, but there are other factors that must be considered. If you’re looking to estimate building costs, we’ve provided a brief explanation of budget considerations often associated with purchasing a steel building.
Direct Building Costs
- Atmospheric Conditions: Snow, wind, seismic
- Intended building use
- Price of steel
Indirect Building Costs
- Buying Land
Permits and fees will also need to be factored in. Based on the size of land you buy, how the parcel is zoned, what you’re building and how you’re using the space, you’ll need to pay various fees and permit costs. This will vary city to city, so check with officials to see how much this will be for the calendar year and when you’ll need them. You’ll also want to check with the local utility costs to see what you’ll need to do to get water, power and more for your steel building.
The Price of Steel
The third factor is often overlooked but can make a substantial difference in your final steel building cost estimate. The price of steel is not fixed and can fluctuate depending on the world economy, the strength of the American dollar, and even natural disasters. The best strategy for countering this volatility is locking in your price. This is especially valuable when working with General Steel because of our buying power in the industry. With a small deposit, you can lock in the price of your steel building cost estimate, which protects you from any increases in the price of steel during the agreed upon timeframe. Not only will this decrease your final building costs, but when your price is locked, it allows you to set a more defined budget.
If You Don't Already Own Land
Land will be the next budget expense that may be up in the air until you talk to the city or landowner. Land prices will vary based on how much you need, whether you buy or lease and what you intend to do with it. Luckily you can hedge this investment by negotiating contingencies that dictate whether or not you have to go through with the purchase.