“We love the design concept, but what will it cost to build?”
Cost estimating has always been a critical component in the planning process for senior living projects, which in the not-for-profit world have often involved bond financing. In today’s economy it is that much more important to answer this question early. But at the same time it’s increasingly challenging due to market volatility, worker shortages and lingering supply chain issues.
So how can you budget, and ultimately control costs, for your next senior living project? It starts with understanding a few fundamentals.
What Goes into a Cost Projection?
Cost projections are so much more than a standard cost per square foot. There are a myriad of factors that must be taken into account:
Project Scope: is the foundational program menu of spaces, functions, capacity and sizes. It’s when goals and aspirations are merged with quantitative requirements.
Project Size: is calculated in terms of gross and net square footage.
- Gross floor area includes everything within a building’s exterior walls.
- Net floor area is the usable square footage excluding walls, columns, lobbies, corridors, stairways, elevators, closets and utility chases.
Grossing Factor: refers to the ratio of revenue generating (living units) to common areas, utilities and wall spaces. It is impacted by building shape and program components.
- A straightforward linear building typically has a lower grossing factor than a structure with bends or curves.
- Smaller building types have a higher grossing factor than a larger building with more living units, such as a hybrid home versus a larger apartment building or a small house versus a larger care setting.
- Social spaces on each floor of an apartment building increase the grossing factor. For senior care settings, a medical model typically has a lower grossing factor than a household model which tends to have more common spaces.
Download the white paper for more details and perspectives, including the cost of doing nothing.
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About the Authors
Craig has more than 30 years of experience as a project manager with a particular focus on large-scale and complex projects. His experience encompasses senior living communities, public schools and private colleges. He is an NCARB Registered Architect in ten states, a LEED Accredited Professional and a member of the American Institute of Architects. Craig is a frequent speaker at state and national conferences and previously served on the Warwick Township, Pennsylvania Planning Commission. Craig’s personal interests include traveling for pleasure and playing bass guitar in his church praise band (he’s also been known to play at a few RLPS...
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With more than 25 years of experience, much of Dan’s career has involved managing projects for senior living communities. These experiences have included a wide range of building types including specific focus on health care repositioning and strategic growth. Dan is particularly skilled at working with state officials to navigate the licensing process that is unique to each state, with the ultimate goal of providing the best possible environment for the end user. Dan is a NCARB Registered Architect, a LEED Accredited Professional and a member of the American Institute of Architects (AIA). In addition, Dan has served as board...
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Eric serves as partner-in-charge, guiding teams of administrators, facility managers, engineers, consultants, and general contractors, through the design and construction process. His project leadership for life plan community projects, spans a 25 plus year career focusing on all aspects of senior housing and care settings. He is an NCARB Registered Architect, a LEED Accredited Professional and a member of the American Institute of Architects. Eric leads the firm’s Post Occupancy Evaluation team and the employee mentoring program and also provides in-house seminars for the project architects. In his spare time, Eric enjoys day trips with his family. They’ve hit many...
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Stacy has 30+ years of experience as a commercial interior designer, focusing primarily on the design of award-winning seniors’ housing and long term care environments. She is a certified National Council for Interior Design Qualifications (NCIDQ) designer and a member of the International Interior Design Association (IIDA.) Stacy has co-authored articles and participated as a speaker at state and national conferences regarding interior design solutions for the aging. Stacy has served as the IIDA PA/NJ/DE Board Secretary and Treasurer and also as an adjunct professor at Pennsylvania College of Art and Design in Lancaster. Stacy’s favorite times are spent watching...
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