Budgeting Your Church Building Project

Understanding Total Project Costs vs Building Construction Costs

We want you to be aware of something important when considering the cost of your new facility. Jesus made a practical point in Luke 14:28 when He said, “Is there anyone planning to build a building, who doesn’t first sit down and figure the total cost, so they’ll know if they can afford it?” Unfortunately, many churches have been caught off-guard by the actual and total cost of their building PROJECT.

The problem lies in not being aware of the difference between the COST of building your BUILDING (Church Building Construction Budget) and the TOTAL COST of the PROJECT (Project Budget). Here’s what we mean by that:

The BUILDING construction cost is only one item in your total expense. Added to that are all the other critically important cost items needed to complete your project. Combining the BUILDING construction cost and these other costs gives you your Total PROJECT Cost.

We don’t want you to be unaware of these other costs, so we have included a list of potential expenses (variables) associated with your building project. These are significant and can make up to 30% of the total cost of your project.

Although this list is not all-inclusive, we hope it gives you a good understanding of what you should budget for good stewardship.

Design Costs

Land Acquisition

Site Cost

Building Costs

Financial Costs Leading to and Through Construction

Other Construction Costs & Permitting Fees

Additional Occupancy Expenses

General Contracting is another approach to completing a construction project. It is an additional option to the construction management and design / build agreements. 
 
Projects that receive funding from public sources are typically taken through design prior to the general contractor having an opportunity to view the plans. The project is competitively bid to an unlimited number of general contractors and awarded to the lowest bid, provided the criteria is met in the bid response. Architects recommend general construction for many privately funded projects as well. 

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Although this list might seem daunting, truly it is not. SB Construction Group will come alongside you to see your realistic total cost of the project (Project Budget), and not just the cost of building your building (Building Construction Cost), created. We use our knowledge of current market costs, our extensive experience, and our historical data to provide, as accurately as possible, your preliminary Total Cost of the Project (Project Budget). Ultimately, we will come alongside you to see your completed project come in within your budget