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The Six Pieces of Information You Need to Accurately Budget Structured Parking
[ Warren Buffett once said, “Price is what you pay. Value is what you get. ]
Value-based pricing is a technique for setting the price of a product or service based on the perceived value it offers to customers. In construction, value-based pricing can significantly affect your return on investment. For example, if you fail to receive a guaranteed lump sum price from your designbuilder, the value can quickly diminish as change orders and schedule delays pile up.
Developers budgeting for structured parking often rely on data reported in construction industry publications. Studies conducted in 2017 show that, depending on the source and project location, the median price ranges from $16,500 to $26,500 per stall. But this wide range of prices can dramatically affect a go/no-go decision for many development deals. Given the fact that most developers agree one building type ideally suited to a design-build contract is structured parking, there is a better way.
With only six pieces of information, it’s possible to receive a guaranteed lump sum price for your specific parking structure, at little to no cost and well below market prices.
Developing Your Budget – It’s As Easy As 1,2,3
The following three factors help determine a budget for your next structured parking project:
1. Available Land. What is the size and shape of the available land? Geometry is the most critical factor in overall cost efficiency. Understanding the size and shape of the land available is essential to designing the most cost-effective structure possible for your site.
2. Program Requirements. How many parking spaces are needed and what will the parking serve? All of the requirements and uses of the structure must be taken into consideration. For instance, is retail space desired at the ground level?
3. Adjacent Structures and Boundaries. What other buildings are around the site? A full-blown site plan isn’t essential to conceptualize the parking structure in the early stages. However, it is important to understand what other buildings will occupy or are near the site and their approximate locations. Approaches differ between a parking structure surrounded by apartments and one that occupies a whole block.
Refining Your Budget – The Final Three Pieces
After a review of the first three items, there is enough information to generate a budget number for your project. The next three items help to narrow assumptions and refine your budget.
4. Level of Architectural Finish. How do you want the exterior to look? The designer can work with you to understand the level of aesthetics you require. For example, does it need to resemble the buildings around it?
5. Geotechnical Information. What is the project size and condition of the soil? These affect foundation types which can be a significant price driver. A site and project specific geotechnical report is necessary to provide pricing for your site.
6. Additional Program Requirements. Are there any other requirements (e.g., card access, payment stations)? The more refined the project specific requirements become, the more refined your budget.
Guaranteeing Your Lump Sum Price
By working with a vertically integrated designbuild company like FINFROCK to determine final information for each of the six criteria above, you’ll receive a guaranteed lump sum price - a price which also includes design. We can do this where others can’t because we combine the advantages of in-house design with the expertise of the manufacturer and the experience of the self-perform contractor. With all design, manufacturing, and construction professionals in-house, we have constant feedback from all teams, as well as an exceptional database of cost information. Drawing upon these resources, FINFROCK accurately prices even the most complex structures without complete plans and in a timely fashion. By delivering the best price possible, owners receive the benefit of significant risk reduction.
About the author:
As Senior Project Executive, Kyle Myers is the liaison between a project owner and FINFROCK’s project managers. His key role is to ensure that the firm maintains high standards of performance throughout a project. He is responsible for negotiating contracts and maintaining financial accountability through the duration of the project. During the design phase of a project, Kyle works with the conceptual designers, architects, and engineers to incorporate economic efficiencies in the overall design. Mr. Myers oversees cost estimates and the pricing of precast materials. During the construction phase of a project, he works closely with the project manager and superintendent to ensure owners realize their goals.
Call us for an accurate budget or, with the right information, a guaranteed lump sum price at (407)293-4000 or visit finfrock.com
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