Government Department Relocation
After a review of facilities, a government entity determines that they have 11,000 square feet of unused space in one building due to moving a department into their own building because of its growth. They also realize that they are leasing 8,000 square feet of space in another building nearby for another department. Project Feasibility was questionable because substantial remodeling would be required in the vacant space. It is not obvious that a move would actually save any money for the government entity because program fees pay the rent in the leased space.
The Budget BluePrint used the features and size of the leased space and the condition of the vacant space to develop a detailed cost of the needed remodeling without needing any design work to determine project feasibility.
The government entity determined that if they could borrow the required money and pay it back in 7 years or less with the revenue from the lease that project feasibility would be worth pursuing further. This time frame seemed safe from the standpoint that the relocated department would still need the space, and not burdening the future with the loan liability.
The government entity was able to borrow the needed funds for the project at 3% interest and was able to determine that the income from the lease would pay off the loan in 7 years. The question of project feasibility received the "thumbs up". The Budget BluePrint estimate and payback analysis are available for download here.
Since the lease payment was paid by the program, the government entity was able to put an asset to work, make a small amount of money while the loan was outstanding, and receive a competitive rent for its space once the loan was paid off.
Once project feasibility was determined, the detailed Budget BluePrint estimate became the game plan for planning the remodeling to avoid "scope creep". The estimate covers every expense associated with the project from demolition through design costs and moving expenses.
The power of the Budget BluePrint is in making accurate projections of the type and amount of construction that will be required including all the "soft costs" which often amount to 20% - 40% of the project. And importantly, detailed plans are not required at this early stage when you aren't certain that the project will go ahead.
After a review of facilities, a government entity determines that they have 11,000 square feet of unused space in one building due to moving a department into their own building because of its growth. They also realize that they are leasing 8,000 square feet of space in another building nearby for another department. Project Feasibility was questionable because substantial remodeling would be required in the vacant space. It is not obvious that a move would actually save any money for the government entity because program fees pay the rent in the leased space.
The Budget BluePrint used the features and size of the leased space and the condition of the vacant space to develop a detailed cost of the needed remodeling without needing any design work to determine project feasibility.
The government entity determined that if they could borrow the required money and pay it back in 7 years or less with the revenue from the lease that project feasibility would be worth pursuing further. This time frame seemed safe from the standpoint that the relocated department would still need the space, and not burdening the future with the loan liability.
The government entity was able to borrow the needed funds for the project at 3% interest and was able to determine that the income from the lease would pay off the loan in 7 years. The question of project feasibility received the "thumbs up". The Budget BluePrint estimate and payback analysis are available for download here.
Since the lease payment was paid by the program, the government entity was able to put an asset to work, make a small amount of money while the loan was outstanding, and receive a competitive rent for its space once the loan was paid off.
Once project feasibility was determined, the detailed Budget BluePrint estimate became the game plan for planning the remodeling to avoid "scope creep". The estimate covers every expense associated with the project from demolition through design costs and moving expenses.
The power of the Budget BluePrint is in making accurate projections of the type and amount of construction that will be required including all the "soft costs" which often amount to 20% - 40% of the project. And importantly, detailed plans are not required at this early stage when you aren't certain that the project will go ahead.