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Before going to decide on remodeling an office or building a new one, we have to consider some important factors like financing, property, construction costs, cost effectiveness and analyze remodeling versus new construction.
a) Financing: Financing is the first thing we have to consider before going to take a decision. We have to analyze if the company is financially good or not. If company is having less money then the company can borrow from other financial institutions. If this the case then we need to consider the interest rates. If interest rates are low, the company will be able to afford the money from the borrower to finance the project. In case of confusion, we can take suggestions from the financial institution also. For example, some financial institutions may have a preference when it comes to financing a remodel of an existing office or build a new one. They can analyze and suggest the company.
b) Property: The type of construction is the second factor that would be to considered after the use of the property. Some older offices are less adaptable to modern uses than others. Normal offices are not suitable for manufacturing purpose or warehousing operations. We should consider whether the old building is suitable for electrical and energy systems to meet the modern organization needs.
c) Construction Cost: Main factor is to analyze the cost of construction whether it is remodel of existing building or building a new one. Contacting a number of contractors and taking quotations for both remodeling of existing building and building a new one. Do not select minimum cost offer. First of all we should consider what contractors are offering and what are the major needs for us. Finally check the contractors previous customers and assess the work quality of contractors. After consideration of all the above things, we will get an idea which makes it easy to take a decision.
d) Analyze the Factors: Before going to take a final decision, we have to consider above factors and analyze one by one. After analyzing above factors we should consider advantages and disadvantages of both remodeling of existing building and building a new building. Each factor has its own weight and so it is important to analyze priority wise for taking right decision.
e) Cost Effectiveness: It is difficult to say which option will minimize the cost and maximize the profits. Older building will face environmental problems, such as lead or asbestos, that will be needed to be removed and other problems such as cooling and heating units that are less efficient and electrical systems may need to be upgraded to handle modern needs. Older buildings will probably require more maintenance because building materials may not be as durable when compared to modern material.